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 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 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."

Dead-On-Departure

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."