This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Facebook and Oculus Aren't Just About Games

Stocks in this article: FBGOOG

That doesn't mean there hasn't been a lot of interest surrounding Oculus, noted Sterne Agee analyst Arvind Bhatia. "Oculus VR has been getting traction in the gaming industry and at the recent Game Developers Conference (GDC) this year, virtual reality in general and Oculus VR in particular, received a lot of attention," Bhatia wrote in a note to clients. "While gaming will be the near-term opportunity for Oculus VR's technology, Facebook envisions applications in other forms of entertainment and communications with the ultimate goal of helping it become 'the most social platform ever.'"

By doing this deal, Facebook moves slightly away from its core functionality, social networking and keeping everyone connected. Both the Instagram and WhatsApp deals were about connecting people and sharing, and it's hard to argue with the success. On the call, Zuckerberg noted Instagram had surpassed 200 million users, and WhatsApp is well on its way toward 1 billion users.

This deal is more focused on the next computing platform, similar to what Google (GOOG) has done with Android. Piper Jaffray analyst Gene Munster, who rates Facebook "overweight" with a $67 price target, said this might be Facebook's "Android moment."

"We view the most interesting aspect of the acquisition is that it is in our opinion the first major acquisition that Facebook has made that is offensive," Munster wrote in a report, noting Facebook was acting forward-thinking like Google. "While one could argue, Instagram and WhatsApp as offensive in hindsight, we believe those platforms both threaten Facebook's core grasp on social time spent. We believe that Oculus is a big bet on the future of visual computing and we may see Oculus as Facebook's 'Android' moment 10 years from now and understand the point of the acquisition."

Virtual reality is still a long ways away from becoming a mainstream platform, and it's no guarantee it will get here. Personal digital assistants (PDAs) never really took off, and tablets were around for quite a while until Apple (AAPL) introduced the iPad in 2010, to name two examples. Still, people believe that virtual reality is coming, whether we like it or not.

"We're in the silent movie stage, and we're just starting to flesh out what opportunities are," Brouchoud said. "This tech enables shared experiences, travel to outer space, it's more about taking friends on a new voyage. I don't think we've even scratched the surface with what's possible."

-- Written by Chris Ciaccia in New York

>Contact by Email.

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,614.81 +215.14 1.31%
S&P 500 1,941.28 +37.27 1.96%
NASDAQ 4,419.4780 +103.4040 2.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs