Main financial assets discussed:
- Meta Platforms Inc. (formerly Facebook)
- Digital advertising market
- Virtual reality (VR) and augmented reality (AR) market
Top 3 key points:
1. Meta's primary source of revenue, digital advertising, is maturing, and the company's growth is slowing. The recent privacy changes introduced by Apple have also impacted advertising on social media platforms.
2. The Reality Labs division, focused on VR and AR, has yet to report a profit and has been experiencing declining revenues. There are concerns about Meta's ability to generate a return on investment in the VR market.
3. The newly launched Threads app is expected to boost Meta's revenue growth by attracting users from Twitter. However, it is still early to determine the app's impact on Meta's overall growth trajectory.
Recommended actions:
- **Hold**: Meta is currently priced within the range of fair value, and the future performance will largely depend on its ability to increase growth.
- Current investors should carefully consider their portfolio allocation to Meta and may choose to lower their current allocation and bank some profits.
- Long-term investors could consider replacing their long equity position with call options using a stock replacement strategy, particularly with the upcoming earnings announcement.
Apple has announced its new mixed reality headset, called Apple Vision, which is set to be released in early 2024 with a price tag of $3,499. The author had the opportunity to try out the headset and found the experience to be extraordinary, exceeding their expectations. The Vision headset combines virtual reality (VR) and augmented reality (AR) technologies, providing a high-resolution and immersive experience. The device utilizes Apple's R1 processor and real-time execution engine to deliver fast and seamless visuals. The author believes that the Vision headset has the potential to replace traditional computing devices like the Mac and iPad, particularly for productivity and consumption purposes. However, the author also raises concerns about the solitary nature of the device and its potential impact on social connectedness.
Meta and LG are reportedly working together to develop future versions of the Quest Pro VR headsets, with LG Electronics responsible for assembly and other LG subsidiaries supplying components, in a bid to compete with Apple's Vision Pro headset, which is set to launch in 2025 with a price tag of around $2,000.
Meta Platforms (META) stock has a strong setup, with two buy points in reach, ahead of this week's Connect conference where the parent company of Facebook and Instagram is set to unveil its new virtual-reality headset, generative AI tools, and more.
Meta is preparing to showcase new XR devices such as the Meta Quest 3 VR headset and second-gen Ray-Ban smart glasses, along with new generative AI chatbots, at its annual Connect event, while also emphasizing the role of AI in its vision for the metaverse.
The Meta Quest 3 is rumored to release on October 10th with a price of $499 for the 128GB model and $649 for the 512GB model, according to leaks from GameStop; however, there is some discrepancy in the leaked specifications regarding the RAM, as some sources claim it will have 8GB while others suggest 12GB, and other confirmed details include a Qualcomm Snapdragon XR2 Gen 2 chipset and a 4MP color video passthrough.
Meta CEO Mark Zuckerberg introduced new artificial intelligence tools, celebrity-endorsed digital assistants, and innovative products like the Quest 3 VR headset and Ray-Ban smart glasses during the Meta Connect conference, aiming to boost the development of the metaverse.
Meta's annual Connect conference introduced new hardware, including the Meta Quest 3 headset with improved passthrough tech, higher resolution displays, and better graphics, as well as features such as Xbox Cloud Gaming, Emu image generation, Ray-Ban smart glasses, and Meta AI-powered bots for messaging apps.
Meta's product showcase for 2023 introduced the Quest 3 headset, the first mainstream mixed reality headset, with improved features such as full color passthrough, enhanced performance, and new controllers, while also announcing the arrival of Xbox Cloud gaming and the release of next-gen Ray-Ban smart glasses. Additionally, former Microsoft executive Panos Panay will head Amazon's Devices and Services division, Logitech unveiled a foldable racing cockpit chair, and Disney+ will restrict password sharing in Canada.
Meta emerges as the top contender and best stock option for investors looking to gain exposure to the growing virtual reality market, with its dominant market share, technological development, and strong financial health.
Apple announced its own mixed-reality headset, the Vision Pro, during the World Wide Developer Conference, featuring sleek aesthetics, a custom operating system, spatial software, and a high price tag of $3,499.
Meta has confirmed that the Quest 3 mixed reality VR headset will be released on October 10th, with preorders available now for two storage capacities and various accessories.
Sony has announced six upcoming VR games for their PlayStation VR2, including Among Us VR and titles like Journey to Foundation, Heroes of Forever, Tin Hearts, Tiger Blade, and The Foglands.
Meta's Connect conference focused on the future of artificial intelligence (AI) and virtual reality (VR), with Mark Zuckerberg emphasizing the development of hologram interactions, AI assistants, and the new Quest 3 VR headset.
Meta Platforms, Inc. (NASDAQ:META) is expected to benefit from the AI wave and the personal AI assistant category, presenting a potentially large market opportunity for the company through advertising or subscriptions. Despite the continued spending on the Metaverse and the potential for AR/VR devices to be sold at a loss, Meta remains cheap compared to other tech giants, and the stock is poised for growth.
Xbox Cloud Gaming will be available on Meta Quest headsets in December, allowing users to play Xbox games on their VR headsets.
The estimated sales of Meta's Quest software are comparable to those of the Wii U at a similar point in its life cycle, raising concerns about the size of the VR software market.
Meta is positioning its new XR headset, the Meta Quest 3, as an affordable alternative to Apple's expensive Vision Pro, aiming to become the "Android phone of the headset world" by offering accessibility and focusing on games, entertainment, and social features.
Meta's recent announcements at its developer-focused Connect conference include the release of the Quest 3, improved Ray-Ban glasses with AI capabilities, personality-driven chatbots, and an AI image and sticker tool, indicating the transformation of VR and smart glasses into mixed-reality devices with advanced AI features.
The Meta Quest 3 is a solid upgrade from the Quest 2, with sharper screens, faster performance, and mixed reality cameras, although it may not appeal to as many VR newcomers due to its higher price.
Main topic: Review of the Meta Quest 3 VR headset.
Key points:
1. The Meta Quest 3 is an upgrade to the previous Quest 2 model.
2. It offers sharper screens and lenses, faster performance, and mixed reality cameras.
3. The Quest 3 provides a mixed reality experience, though it's not perfect, and lacks certain features like face and eye tracking.
Meta Platforms (META) stock has seen a significant rally in 2023, driven by analyst optimism over the upcoming Q3 earnings update and excitement over new technology, including smart glasses and virtual reality headsets, but there are concerns that growth expectations may be overly optimistic and there could be headwinds from consumer spending slowdown and privacy regulation.
Meta is gearing up to compete against Apple in the mixed-reality headset market, with employees reportedly feeling the pressure as they enter the "afraid of Apple" stage, while Apple positions its Vision Pro as a productivity and entertainment device with gaming as an added bonus.
Meta CEO Mark Zuckerberg discussed the company's metaverse strategy at the Meta Connect 2023 event, highlighting the importance of AI in their products and partnerships with Qualcomm. The newly announced Quest 3 headset offers improved features but faces challenges due to its higher price compared to its predecessor. Meta's Ray-Ban smart glasses have seen improvements and the company is focused on expanding its services and enterprise applications. AI is also a key focus for Meta, with the inclusion of AI assistants and the establishment of an AI Studio for developers. Overall, Meta aims to deliver high-quality hardware and improve user experiences in the XR space.
The Meta Quest 3 offers a hyper-realistic mixed reality experience with impressive color passthrough cameras, although there is limited software that takes advantage of this feature. The headset's improved hardware and hand-recognition controls make it a worthwhile upgrade for owners of older VR devices.
Apple's upcoming more affordable version of the Vision Pro AR/VR headset will omit the EyeSight functionality to bring down cost, aiming for a price tag of $1,500-2,500, while other upcoming Apple products such as MacBook Pros, MacBook Airs, and iPads with new features are in development.
Meta's Quest 3 headset, a video-recording face computer, allows users to interact with the real world and perform daily tasks without taking off the headset, raising concerns of privacy and social boundaries reminiscent of the Google Glass controversy a decade ago.
Meta Quest Ray-Ban is a mixed-reality headset designed for inconspicuous outdoor use, offering features like hand tracking and livestreaming, while the Meta Quest 3 is a lighter headset exclusively for indoor use, with both devices showcasing clever design and functionality.
Social media giant Meta Platforms is in the buy range and has unveiled new products, including smart glasses and VR headsets, as it continues to see growth in earnings and sales.
