The CEO of Meta Platforms, the company under whose wings social media companies like Facebook, Instagram or Whatsapp fall, announced the release of a new mixed reality headset called Quest 3. Marc Zuckerberg introduced the new product as a potential competition for Apple, which has plans to introduce its own mixed reality headset. The device's price tag will be around $500 a piece and promises 40% less thickness compared to the previous version, which is important for gadgets like this in terms of ease of use. The headset will offer a Qualcomm processor, color mixed reality, a combination of virtual and augmented reality, and will bring with it reduced pricing and improved performance for the previous versions.
Meta leads the virtual reality market, as they accounted for 80% of all headset sales in 2022. However, in the same year, the company experienced troubles with Project Multiverse. The addition of a new headset could mean a nice boost for that project and a chance to expand virtual reality beyond the gaming community. Meta Reality Labs sees potential in its research work and wants to incorporate elements such as fitness with virtual workouts, as well as a collaboration with Microsoft, which would give it a lead over rivals Apple and Sony with their VR2 headset[1].
Meta survived the lawsuit unharmed
In 2018, Facebook faced global scrutiny because, according to the indictment, the platform used a personality test to collect information from more than 87 million users and provided it to British political consultancy Cambridge Analytica, potentially violating privacy protections. Maurice Ross, a Washington Supreme Court judge, dismissed the suit, saying Facebook had not violated the Consumer Protection Act. The company's policy provided information about how third parties could use users' information, did not mislead them, and provided security guidelines as well.
Meta Platfroms stock performance over the past five years. (Source: Google)
Since the beginning of the year, Meta Platfroms shares have had a nice run and have seen an upward move of over 118%.* After a not so successful year in 2022, the last few months have been positive for the company and news of a new headset will give it a lift in the market which could boost the upward trend even further. Meta Platforms holds a prominent position in the technology world and has been able to defend its position several times in the past, which makes it an attractive opportunity for investors.
* Past performance is no guarantee of future results.
[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or on the current economic environment, which may change. Such statements are not guarantees of future performance. They involve risks and other uncertainties that are difficult to predict. Results may differ materially from those expressed or implied by any forward-looking statements.
