Wednesday, September 28

Meta shares could revalue thanks to Oculus Quest 2

The latest virtual reality device from Meta (Facebook), Oculus Quest 2, It has been the great Christmas gift for the firm. Since its sales could boost the value of the company in the market, according to Brian Sozzi en Yahoo Finance.

According to new research by the Jefferies’ analista, Brent Thill, the Oculus app was the most downloaded on Christmas day. Oculus downloads and daily active users on Christmas Day increased 70% and 90%, respectively, with respect to the previous year.

The payoffs are impressive, in the sense that the Quest 2 isn’t cheap, it costs almost $ 400.

“We see this massive increase in app usage as evidence that the improved list of games and experiences is resonating with users and that Quest 2 sales are likely to surprise. The Quest 2 were popular giveaways in our homes this Christmas with ‘SuperHot’ and ‘Eleven Table tennis is one of our favorite games, “said Thill.

Thill added: “As teens spend more and more time on services like SNAP, TikTok, RBLX and Fortnite, it is becoming more difficult for Meta to attract and retain younger users. We believe that Quest 2 could serve as a gateway to attracting these users as they can be more easily introduced to Meta’s diverse offering of games, experiences and social platforms. We also see the overall success of Oculus as a potential catalyst for game developers to work more closely with Meta. ”

Meta shares rose by 1% in pre-market trading on Tuesday to $ 348.

Thill, a longtime Meta bull, maintained a grade of Purchase Target with a price target of $ 420.

While Thill acknowledges headline risk for Meta’s shares out of privacy concerns, it contends the valuation is too compelling to ignore in light of key fundamentals like Oculus.

“Our most recent advertiser checks point to a healthy environment for digital advertising spending. In addition, recent data from Mastercard indicate that online retail sales of the festivities increased by 11% year over year (and 61% vs. 2019), providing further evidence that holiday demand was likely strong. With the shares trading at only 20 times the winnings per share for fiscal year 23E (vs. Nasdaq’s 26-times comparable), we see plenty of opportunities for higher stock over the next 12 months, “Thill concluded.

Ei for Meta indicators are mostly bullish.

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