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#Rift

Facebook Inc's Rising Competition With YouTube Could Be A Drag On FB Stock
Rohit Mahankali 2/16/2017 2:26:27 PM

Excellent article Sreekanth! I undestand that #Facebook's higher CapEx would put pressure on meeting "Net Income" goals, and you mentioned that Facebook is still a buy due to its many growth drivers. Going off of that, I'd like to shed light on Facebook's acquisition of #Oculus. Given #Zuckerberg's outlook that virtual reality will be the next disruptive medium, Facebook expects many future cash flows due to proprietary #VR technology such as the #Rift. While this disruption is quite plausible, the per-unit costs of VR products are exorbitant. Could expected returns from risky drivers such as VR sufficiently justify undertaking the risk of entering the video space? $FB

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