Facebook (FB) Stock Down 0.58% in Pre-market as Company Cancels Oculus Go VR Headset

UTC by Christopher Hamman · 3 min read
Facebook (FB) Stock Down 0.58% in Pre-market as Company Cancels Oculus Go VR Headset
Photo: Facebook

Facebook (FB) stock price rose slightly yesterday but was down in the pre-market today. But further growth is expected.

Facebook Inc (NASDAQ: FB) stock price rose slightly during the last trading session. This occurred as the social networking giant had indicated plans to scrap the Oculus Go Virtual Reality headset. The Go was introduced in May 2018 with a price tag of $199. It is the cheapest of the virtual reality headsets in the market so far.

Facebook indicated in a blog post on the Oculus website about the matter. The company said that the “Go’s success first proved that the all-in-one form factor can deliver highly immersive experiences”.

On Tuesday, Facebook (FB) stock price was $242.24 (+1.26%). In the pre-market, the stock lost 0.58%.

Facebook (FB) also affirmed the Go’s role as a conversation-starter. The social networking giant also said that the Go introduced many people to the world of virtual reality. Facebook said:

“We’ll end sales of Oculus Go headsets this year as we double down on improving our offerings for Quest and Rift. Today we’re also excited to share a sneak peek at a new way for developers to distribute Quest apps starting next year so that even more of you can join the next chapter along with us”.

The Go is a standalone virtual reality headset that works without the reliance of devices for computing power. Facebook has also launched the Oculus Quest. The Quest is priced at $399. it is also standalone. Also, the Oculus Rift S needs to be plugged into a PC. It is also priced at $399.

Revenues from the virtual reality headsets haven’t been disclosed. Facebook (FB) however has generated $297 in non-advertising revenue. This is an 80% increase from last year.

Facebook (FB) Stock Price to Rise as Non-Ad Revenue Will Go Up

This is an indication that Facebook (FB) is finally starting to grow its other business models. The movement restrictions have much to do with this. Many people expect that the current trends will continue and post-COVID-19 will be a core part of Facebook’s (FB) success.

SuperData a Nielsen company has estimated that 55,000 units of the Go have been shipped in the first quarter of this year. 141,000 quest units were also shipped during the same period. 87,000 units of the Rift and the Rift S were shipped as well.

The social network’s announcement comes twenty-four hours after the acquisition of Ready at Dawn Studios. Facebook has been going on binge acquisitions since last year.

The company has also indicated that it will ship bug fixes and security patches for the Go till 2022. The social networking behemoth won’t allow new Apps and updates after December 4, 2020.

Facebook also indicated that it is looking at ways to improve the Oculus App ecosystem. The social networking company has indicated that there may be an alternate App distribution model for developers.

Details about this have remained foggy. The approval process for Apps for the Quest has been extremely rigid. No indication has been given if this will change.

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Christopher Hamman

Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.

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