Meta Platforms (FB): Analysts Discuss Strong VR Hardware Holiday Sales

Meta (NASDAQ: FB) stock price is up about 1% today after Street analysts weighed in positively on demand for the company's virtual reality (VR) products.

Jefferies analyst Brent Thill took note of the strong popularity of Meta’s Oculus Quest 2 VR headset. The product became the most downloaded application on the U.S. App Store.

“Quest 2 success could be key for retaining the younger audience,” Thill said in a client note.

Meta is likely to benefit from VR sales massively in the long-term, the analyst added. He believes there is a lot of space for stock to move higher over the next year.

Similarly, KeyBanc analyst Justin Patterson also discussed the popularity of Oculus Quest 2. The analyst argues that Meta may be benefiting from console shortages (e.g., PlayStation 5, Switch OLED).

“Oculus app download ranks suggest a solid Christmas selling season. Prior to Dec. 24, Oculus ranked as a top 10 iOSentertainment app in only one country (the U.S. at #8). From Dec. 24-25, app rankings improved significantly. On. Dec. 24, Oculus Was a top 5 entertainment app in five countries and a top 10 overall app in the U.S. Oculus's app ranking was even greater onChristmas Day. The app became a top 5 entertainment app in 14 countries and the #1 overall app in the U.S. By the afternoon of December 26th, Oculus's iOS app performance showed some moderation, but still very healthy performance across geographies- top 5 entertainment app in 11 countries and #2 overall in the U.S,” Patterson wrote in his report.

FB stock price is up nearly 30% YTD.

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