After Lower Sales Of Quest 2 Led To Loss At Reality Labs, Meta Reportedly Cuts Quest 3 Shipment Forecast By 5-10%
Portfolio Pulse from Ananya Gairola
Meta Platforms Inc. (NASDAQ:META) has reportedly cut its shipment forecast for Quest 3 by 5-10% following a $3.7 billion operating loss primarily linked to decreased Quest 2 sales. Analyst Ming-Chi Kuo from TF International Securities predicts that Reality Labs' losses will continue to widen due to lower-than-expected market demand. He also highlighted the impending competition from Apple Inc.'s (NASDAQ:AAPL) first-generation mixed-reality headset, Vision Pro, which is technically 2-3 years ahead of Meta's Quest.
October 28, 2023 | 2:13 am
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POSITIVE IMPACT
Apple's first-generation mixed-reality headset, Vision Pro, is seen as a significant competitor to Meta's Quest. The product is technically 2-3 years ahead of Meta's Quest, which could give Apple a competitive edge.
The news of Apple's Vision Pro being technically ahead of Meta's Quest could positively impact Apple's stock price in the short term as it indicates a potential competitive advantage in the mixed-reality market.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Meta's Reality Labs has cut its shipment forecast for Quest 3 by 5-10% following a significant operating loss. The company faces stiff competition from Apple's Vision Pro, which could further impact sales.
The news of a cut in shipment forecast following a significant operating loss is likely to negatively impact Meta's stock price in the short term. The impending competition from Apple's Vision Pro could further dampen investor sentiment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100