Following the reveal of the consumer version of the Oculus Rift head-mounted display at Oculus VR’s ‘Step into the Rift’ press conference, San Francisco, earlier this month, parent company Facebook’s stock rose Monday as the world’s largest social network received a substantial price target boost from investment bank Piper Jaffray. An analyst from the firm has hinted that this was in part due to the announcement of a partnership with Microsoft, which may in time see the launch of a ‘Microsoft Rift’ device for Xbox One.
“Our revised price target is based on Oculus [VR] as an insurance policy on the relevance of Facebook’s social portfolio as technology shifts,” wrote Piper Jaffray analyst Gene Munster in a new research report. Facebook has partnered with Samsung for the Gear VR powered by Samsung Galaxy devices, and with Microsoft “to bring the Microsoft Rift to Xbox,” Munster said.
It should be noted that while Oculus VR announced a partnership with Microsoft at the Step into the Rift press conference the technology is limited to streaming through the use of a Windows 10 PC. This is the first relation to a direct Xbox One release that has been revealed.
In the report, Munster values Oculus VR at $5 billion of Facebook’s total $233 billion market cap, more than double the $2 billion that Facebook paid for Oculus in March 2014. “Oculus could be worth $35 billion in the next five years,” Munster wrote.
Piper Jaffray raised its price target on Facebook stock to 120 from 92 and maintained its overweight rating. Munster pegged 2016 Oculus sales at 3 million units, adding $1.2 billion to Facebook’s estimated $20 billion in 2016. VRFocus will keep you updated with the latest industry assessment of the Oculus Rift as a virtual reality platform, and that seemingly increasingly important partnership with Microsoft.