Market Overview

Facebook Targeting 1 Billion Users For New VR Headset

Facebook Targeting 1 Billion Users For New VR Headset
Related FB
Facebook Vs. Twitter Vs. Snapchat: How Do Key Statistics Compare?
How Truck Stops Could Drive The Electric Revolution
Total USD Portfolio Review - January 2019 (Seeking Alpha)

Facebook Inc (NASDAQ: FB) has bold plans for its new Oculus Go virtual reality headset, which could positively impact the entire semiconductor sector, according to Bernstein's Pierre Ferragu.

Facebook's Oculus Go has a handful of notable characteristics that bodes well for the device's future prospects, including:

  • The headset operates autonomously without the need for an external device.
  • A high resolution LCD screen and virtual reality features.
  • A price tag of $200 is "not a lot" of money.
  • Facebook's CEO Mark Zuckerberg wants 1 billion people to use it

Semiconductor investors would likely be excited with the device which will likely require "expensive leading edge chips" for processing power and battery life, Ferragu continued. The first version will likely include QUALCOMM, Inc. (NASDAQ: QCOM)'s Snapdragon 821 and the upcoming Snapdragon 835 will be a machine learning unit and likely included in future devices.


Moreover, each Oculus unit will likely contain the equivalent technology that is found in a high-end smartphone, the analyst added. Since it will sell for more than half the cost of most smartphones at $500, one billion users would keep busy 70,000 wafer starts per month, which is almost as much as the entire smartphone market today.

"The level of adoption of video in Facebook today is something nobody believed possible five years ago," Ferragu wrote. "The power of the network to spread a new use case is very impressive. A billion users for a $200 Oculus Go headset pushed by Facebook is a credible story."

Related Links:

A FANG Stock Q3 Earnings Preview

Facebook's Oculus: It's Getting Real

Latest Ratings for FB

Jan 2019Raymond JamesMaintainsOutperformOutperform
Jan 2019NomuraMaintainsNeutralNeutral
Jan 2019Deutsche BankMaintainsBuyBuy

View More Analyst Ratings for FB
View the Latest Analyst Ratings

Posted-In: Bernstein Mark Zuckerberg Oculus Rift Pierre FerraguAnalyst Color News Analyst Ratings Tech Best of Benzinga


Related Articles (QCOM + FB)

View Comments and Join the Discussion!

Latest Ratings

CBBMorgan StanleyUpgrades10.0
GDCredit SuisseDowngrades184.0
GEOJP MorganDowngrades26.0
TRUERBC CapitalDowngrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

4 Stocks Reeling On Retail News

Republic Breaks The Venture Capital Mold With Equity Crowdfunding