Oura delayed its initial public offering this week, citing uncertainty in the IPO market, but analysts questioned the stated reason for the pullback in the smart ring maker's debut.
Anshel Sag, principal analyst at Moor Insights & Strategy, said the timing felt suspicious. "I really believe that there's something else that's causing them to pull out of the IPO, and I don't think it's the market," Sag told CNBC. "Them jumping out of this IPO is kind of weird."
The delay arrives as AI wearables face mounting privacy concerns that may be reshaping demand for camera-equipped devices. Meta's Ray-Ban smart glasses, equipped with discreet cameras, have drawn intense backlash on social media, where users have dubbed them "pervert glasses" and reported unauthorized recordings. Meta's own advertising campaign featuring Kylie Jenner filming everyday life deepened criticism about the surveillance implications.
DA Davidson analyst Gil Luria said the camera backlash represents a fundamental obstacle. "It's done for at this moment. We're going to have to revisit this 10 years from now," Luria said. He noted that his twin teenage sons were initially excited about the glasses but now "wouldn't be caught dead in them." Meta responded by unveiling a camera-free smart glasses option last month.
The privacy headwinds extend beyond Meta. Gyms and other venues have banned smart glasses over surveillance concerns. Flock Safety's license plate scanners face vandalism and contract cancellations driven by community opposition. In February, a Los Angeles judge threatened contempt charges against anyone wearing Meta Ray-Ban AI glasses during CEO Mark Zuckerberg's testimony in a social media addiction trial.
Other AI wearables have struggled on execution. The Rabbit r1 personal assistant and Humane AI Pin lacked clear advantages over smartphones and faced hardware issues. Avi Greengart, founder of Techsponential, said the Humane pin cost $700, overheated, had poor sunlight visibility, weak battery life and no compelling use case.
Health-focused wearables remain stronger performers. Apple Watch Series 12 features new AI capabilities, and Apple's AirPods accessibility features are transforming the headphones into hearing aids. These products leverage existing user bases and solve clear problems.
Sag noted the core challenge: "Their value add has to overcome the perception of AI being a technology that people are opposed. It needs to be more helpful and useful than people's apprehensions about it."