For a while, the notion of new headsets for virtual and augmented reality (VR/AR) was a front-of-mind development for tech companies everywhere. Now, social media company Meta Platforms (META) is pulling back on its plan to release a high-end headset that would compete with Apple’s (AAPL). Investors took it poorly and sent Meta down fractionally in the closing minutes of Friday’s trading.
Known as the “La Jolla” project, Meta’s attempt at a high-end headset was expected to be complete in 2027. Despite this, Meta told Reality Labs employees to halt work on the project now. Originally, the La Jolla project was said to use micro-OLED screens that were on par with the Apple headset, but Meta quickly discovered it had little chance of getting such a tech package up and running with a hoped-for cost of under $1,000.
This might have been the smart move, as reports note that Apple’s high-end headset, the Vision Pro, has been facing slow uptake rates as customers balk at the high price tag in light of a slowing economy. Instead, Meta is planning to license out its various reality tools—virtual, augmented, and mixed alike—to other dedicated hardware makers.
Is Meta Platforms a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on META stock based on 24 Buys, two Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After an 84.24% rally in its share price over the past year, the average META price target of $549.35 per share implies 4.1% upside potential.
