Is there an Oculus Rift stock? In fact, have you even heard of them? What is this company and what do they do? If you're into virtual reality, then I think you'll enjoy this.
Now the thing on everyone's mind is how can you trade Oculus Rift? Or can you? We delve into what this company is and how to trade them.
What is Oculus Rift?
- At first glance it probably sounds like something out of a science fiction movie. In reality, it’s not too far off. Oculus Rift was established in 2012 in Irvine, California by four entrepreneurs who loved the idea of video gaming in virtual reality. The company began as a Kickstarter campaign. It proved to be more successful than anticipated as it raised $2.4 million. Despite the original goal being only $250,000. The campaign produced two headsets that were released to developers. They were codenamed Oculus VR DK1 and the Oculus VR DK2. But is there an Oculus Rift stock?
1. Turning Point for Oculus Rift
The big turning point for Oculus came in 2014. It was bought out by a little company known as Facebook (NASDAQ:FB) for a cash and stock deal valued at $2.3 billion.
The deal truly put Oculus Rift on the map as a legitimate player in the virtual reality space. And landed Facebook a much desired foot into the gaming and virtual reality world.
While analysts saw the value of Facebook’s purchase, the deal was criticized by many in the gaming space as a slap in the face to the economy of crowdfunding.
As a result, what does that mean for Oculus Rift stock? It could potentially be a good thing at some point; for both Oculus or even say Minecraft.
2. The Industry Leader
So if you haven’t figured it out yet, Oculus Rift is one of the industry leaders in developing and building virtual reality headsets for gaming.
The Oculus Rift headsets specifically work with high-end PC gaming. Which separates them from console headsets like the Playstation VR model.
The Oculus Rift headset comes with the headpiece that the user wears over their eyes. As well as two controllers that the user holds in each hand.
The player then plays their games through the headpiece rather than on a computer monitor or television screen. Therefore, experiences the game as if they were truly in that world.
Virtual reality is still quite a niche market. But its popularity is growing as consoles and PCs become more powerful and the gaming technology continues to advance.
Can I Buy Oculus Rift Stock?
- Unfortunately right now, Oculus Rift isn't a publicly traded company. They remain very much a part of the Facebook family. If you want to invest in Oculus Rift you'll have to buy shares of Facebook for now. Which can be a somewhat expensive endeavor as the social media giant currently trades at around $270 per share. The virtual reality sector is really in its infancy. Especially in terms of how big it can eventually get. So wanting to invest in Oculus Rift stock is definitely not a misguided idea. Who knows, it could one day brake off from Facebook. But more on that later.
1. Well, What Else Does Facebook Own?
Are you debating whether or not to buy shares of Facebook? The social media platform is one of the largest and most powerful companies in the world.
They have a market cap that's quickly approaching the exclusive class of $1 trillion. As of the third quarter in 2020, Facebook boasted over 1.82 billion daily active users and over 2.7 billion monthly active users.
More than a third of the world’s population. Just incredible! Here is a list of some other brands that Facebook owns.
Just take a walk down the street or head into a coffee shop. Odds are that you'll see at least one person scrolling through pictures on Instagram on their phone.
It's the social media craze that's spread like wildfire. Perfectly encapsulated are the concepts of capturing and sharing a moment in real-time on your mobile phone.
It's also become a method of advertising for businesses and brands that can creatively capture photos or videos of their products to show would-be consumers.
Instagram has over 500 million daily active users and over 1 billion monthly active users. Advertising and even an eCommerce platform is built right into the app for business to sell their goods. Instagram is a revenue ATM for Facebook.
3. WhatsApp and Facebook Messenger
The king of web-based messaging services, Facebook acquired WhatsApp in a cash and stock deal in 2014 for $19 billion. Which was the company’s largest acquisition to date.
WhatsApp is the most used messaging platform in the world. Over 2 billion active users has nearly double the usage of Facebook messenger and Tencent’s WeChat.
WhatsApp is highly used because of its end-to-end encryption security; which has both positive and negative sides to it. While it doesn't develop much revenue as of now, WhatsApp is one of the most important parts of the Facebook ecosystem.
Facebook Messenger is another messaging service that's highly used around the world. They have over 1.3 billion monthly active users.
Years ago, Facebook opted to split the messenger app from the Facebook platform app. This forced users to install both apps even though they work in conjunction with each other.
What About Some Other Virtual Reality Companies Instead of Oculus Rift Stock?
- Still on the fence about whether Facebook is a stock you want to add to your portfolio? Maybe you really just want to invest in the virtual reality space instead. Here's how quickly the virtual reality space is growing. Name any big tech company in the world and chances are they're involved in virtual reality or augmented reality in one way or another. If you don’t feel like investing in Facebook, try taking a look at these companies and adding them to your watchlist.
1. Sony (NYSE:SNE)
The current industry leader in virtual reality gaming with its Playstation VR headset that's compatible with the all-new Playstation 5 console is Sony.
The future of gaming is now. As a result, the ability to slap on a VR headset while playing games with next-generation graphics may give Sony the edge over Microsoft (NASDAQ:MSFT).
Especially in the current console war. While it's definitely not a core component to its gaming platform, Sony is definitely pushing the PSVR side of its next-gen console as a clear competitive advantage over its rivals.
2. Qualcomm (NASDAQ:QCOM)
For every new piece of technology we have we need the microchips that are essential to running these devices.
Qualcomm is the world’s largest chip maker and currently builds the chips that are in the Oculus VR headsets.
So, if you want to invest in the engine that keeps these headsets operational, it’s not a bad idea to buy shares of the company that makes it all possible.
3. Snapchat (NYSE:SNAP)
Another social media platform that has the under 25 crowd obsessing over which filters to use, Snapchat uses augmented reality to create short video clips that users can share with their friends.
While it's probably safe to assume Snap will never be as big as Facebook, it hasn’t gone away and is currently still used by over 250 million daily active users.
What Sets Oculus Rift Stock Apart?
- One of the main differences in virtual reality headsets is that a majority of them up to this point have been tethered. Otherwise known as, they plug into your computer. Oculus’ latest offering, the Oculus Quest 2, does provide a wireless experience. Although it's noted by most reviewers that the experience really excels when the headset is still tethered to the PC. The Quest 2 builds on its predecessor in nearly every way imaginable and has an exclusive line of games that you can’t play with any other VR headset.
1. Oculus Rift Awards
Oculus Rift has won countless awards and recognition for its products. In fact, they're routinely named the best virtual reality headset maker in the industry.
The best part about its newest headset, the Oculus Quest 2? It's cheaper than nearly all of its major competitors; which includes the Sony Playstation VR headset ($350), the HTC Vive Pro ($1,199), and the Valve Index ($999).
The Quest 2 has the most pixels ever in an Oculus Rift headset and it is clear that Oculus Rift feels strongly about the headset as it is discontinuing the sales of all of its other models in 2021.
In addition to the line of virtual reality headset, Oculus Rift also runs Oculus Studios which provides advice and support for creating game experiences to be used with the Oculus VR headset.
Facebook and Oculus have made some big investments in the gaming industry. In 2020 alone they've purchased the gaming studio Ready at Dawn; which is composed of former members of Naughty Dog and Blizzard Entertainment.
2. Wait, So There Is a Chance There Will Be an Oculus Rift Stock?
Well, we wouldn't say the chance is a high one. But there has been increasing pressure from not only the United States Congress, but other governing bodies like the European Union as well, to split up the big tech companies for anti-competitive behavior and acting as new-age corporate monopolies. Perhaps you've heard recently about big tech taking out Parler?
The list of companies includes of course, Facebook, Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), and Microsoft (NASDAQ:MSFT) as well.
This has also recently arose in China as well where the CCP is investigating eCommerce giants such as Ali Baba (NYSE:BABA), Tencent (TCEHY), JD.com (NASDAQ:JD), Pin Duo Duo (NASDAQ:PDD), Meituan, and Didi Chuxing, for similar antitrust and anti-competitive behavior.
So what does that mean exactly? It means there's a small chance that in the future, companies like Facebook would be forced to split up its brands into separate entities.
Which would, of course, have a direct impact on Facebook’s stock. Perhaps one day soon, we'll see Facebook sell off WhatsApp, Instagram, and Oculus Rift.
At which point the companies would be free to trade under their own ticker symbols on Wall Street. Do we expect this to happen?
Not right now. Even though there's more bipartisan support for this than ever before. There's also no guarantee that Oculus Rift would trade as a public company.
Even if it's split-off from Facebook, investors shouldn't see a potential breakup as an automatic opportunity to invest in Oculus Rift.
Oculus Rift Stock Conclusion
In the world of virtual reality gaming headsets, it doesn't get much bigger than the brand name of Oculus Rift. It provides users with cutting-edge technology and one of the best virtual reality experiences you can find for your PC gaming.
And is offered at a price that is much lower than its competitors. One of the main reasons for Oculus Rift’s success? The deep pockets and influence of its parent company Facebook.
As of today, Oculus Rift is not a publicly traded company. Therefore, no Oculus Rift stock. So if you're looking to invest in the virtual reality industry, you're going to have to look elsewhere.
There could very well come a day in the near future where Facebook and Oculus Rift part ways. But for now, if you want to invest in Oculus Rift, you're going to have to buy shares of the social media giant instead.