Meta: Reality Labs Could Take Off Sooner Than Later
Summary
- I reaffirm my strong buy rating on Meta and I project the stock testing all-time highs in the next few months.
- I see high potential in the Reality Labs segment from the new deal with Anduril, the store expansion strategy, and the potential deal with Hollywood for exclusive content.
- The store expansion is key in the VR strategy. I believe this will give skeptics a chance to try the headsets and experience the full potential of the immersive technology.
- From a price action perspective, the chart looks great. Despite the V-shaped recovery, the RSI is not in the overbought territory.
- From a risk perspective, I still think taxes on internet services in Europe (particularly from leftist countries) are a big risk in the near term, especially if the US and the EU don't make a trade deal.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.