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Dolby Laboratories Inc. (NYSE: DLB) and Meta Platforms Inc. (NASDAQ: META) said Wednesday they are expanding Dolby Atmos and Dolby Vision across Meta's ecosystem.
Meta's new AI glasses will be the first global consumer device that can capture audio in Dolby Atmos. Users can record spatial audio and share it on Instagram, which already supports Dolby Vision.
The rollout builds on Meta's introduction of Dolby Vision on Instagram last year.
Meta also said its upcoming VR device will support Dolby Vision and Dolby Atmos when it launches next year.
The announcement came as Meta used Connect 2026 to unveil a $1,299 VR glasses device, expand its AI glasses lineup and bring its Muse personal AI agent to more products.
The partnership expands Dolby's presence across Meta's social media, wearable and virtual reality platforms.
DLB stock edged higher in Thursday's premarket trading, outperforming a weaker broader market. Nasdaq futures fell 1.04%, while S&P 500 futures dropped 0.58%.
The stock has traded in a choppy range in recent months. Its relative strength Thursday suggests buyers are still defending the mid-$50 range despite broader market weakness.
However, DLB continues to face resistance near several longer-term moving averages.
DLB shares are trading below the 20-day simple moving average of $60.93 and the 200-day SMA of $60.03. That puts the low-$60 range in focus as key resistance.
The stock is also slightly below its 50-day SMA of $58.88. However, it remains above the 100-day SMA of $56.32.
Momentum also shows signs of weakening. The MACD is below its signal line, while the histogram is negative. That suggests buying momentum has cooled from the previous upswing.
The moving averages offer mixed signals. The 20-day SMA remains above the 50-day SMA, which supports the shorter-term trend. However, the 50-day SMA is still below the 200-day SMA, pointing to a weaker longer-term setup.
DLB shares have fallen 18.96% over the past 12 months. Key resistance sits near $60.03, which aligns with the 200-day SMA. Support stands near $56.32, around the 100-day SMA.
Dolby carries a Strong Buy consensus rating with an average price forecast of $87.50.
Rosenblatt maintained its Buy rating and $85 price target on Aug. 28, as it had on July 31. Barrington Research maintained an Outperform rating and a $90 price target on June 15.
The stock trades at a price-to-earnings ratio of about 24.7.
The MarketDash Edge scorecard shows a mixed picture for Dolby.
Momentum scores 31.84, while value stands at 64.39. Quality scores 14.04, and growth stands at 7.79.
The readings point to mixed momentum and value signals, while growth and quality rank weaker relative to the broader market.
Several exchange-traded funds hold Dolby.
The Parametric Equity Premium Income ETF (NYSE: PAPI) has a 0.69% weighting. The ProShares S&P Technology Dividend Aristocrats ETF (BATS: TDV) has a 3.27% weighting, while the First Trust Horizon Managed Volatility Small/Mid ETF (NYSE: HSMV) has a 2.11% weighting.
Flows into or out of these funds can create incremental buying or selling pressure in Dolby shares.
Dolby Laboratories shares were up 0.10% at $58.09 in Thursday's premarket trading, according to market data.
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