NEW YORK (TheStreet) -- Facebook's (FB) - Get Report virtual reality division could generate $1 billion to $2 billion in incremental revenue by 2017, Cantor Fitzgerald analysts wrote in a note before Thursday's market open.

"We believe Facebook's Oculus Rift could sell 600K+ units in 2016 and 2M+ in 2017, generating over $1.6B of revenue in 2017," analysts added.

Between hardware sales and royalty fees from videogame sales, the Menlo Park, CA-based company could see virtual reality sales jump to $7 billion by 2020, accounting for 10% of total revenue for the social media company.

In March 2014, Facebook acquired Oculus VR, the company that developed the Rift, for $2 billion in cash and stock. The virtual reality headsets are mostly used for videogames, but the company indents to expand its uses to education, communication and other forms of entertainment.

Shares of Facebook are down by 0.17% to $114.50 in midday trading on Thursday.

Separately, Facebook has a "buy" rating and a letter grade of A- at TheStreet Ratings because of the company's robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins.

You can view the full analysis from the report here: FB

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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