Facebook's Oculus Rift Is Dead-On-Departure, According To Trip Chowdhry
Investors that assume virtual reality will dominate our lives in the coming years may need to re-examine that thesis.
Facebook Inc (NASDAQ:FB), a leading pioneer in virtual reality technology through its Oculus Rift segment, is closing 200 of its approximate 500 demo stations inside Best Buy Co Inc (NYSE:BBY) stores, according to a Business Insider report.
Business Insider noted that workers from various Best Buy stores that have an Oculus Rift demo station said it was common to go days without giving a single demonstration.
Facebook's Oculus Rift unit confirmed the report and told Business Insider its decision to close around 40 percent of demo stations is due to "seasonal changes."
Trip Chowdhry of Global Equities Research commented on the Business Insider report and argued that investor optimism over the Oculus Rift is "totally misplaced" and the technology is "Dead-on-Departure."
Chowdhry further suggested the market for virtual and augmented reality "does not exist" and there is "zero customer interest" in Facebook's technology.
"Facebook has been blowing a lot of Hot Air into Oculus," Chowdhry stated in a report on February 6. "Investors should remove AR/VR and Oculus from their Facebook investment thesis."
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