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Facebook's Virtual Purchase Is Very Real

Oculus VR, maker of the innovative virtual reality headset Oculus Rift, has just been bought by Facebook (NASDAQ: FB  ) in a deal worth $2 billion. While some have questioned just how relevant the technology would be to Facebook's core business, on today's edition of Stock of the Day, Motley Fool analyst Jason Moser says he understands the bet Facebook is making on Oculus. As consumer electronics continue to trend more and more toward wearables with increased interaction with users, buying this potentially disruptive technology now could make sense with Facebook's long timeline thesis.

Jason sees the story of Facebook up until now as being one that was centered around acquiring users and growing its user base, but as the story goes forward, that will continue to shift to become increasingly more about the number of ways that Facebook can interact with that user base. The price of $2 billion is still a relatively small bet for Facebook, especially considering that a large portion of the deal is being paid in company stock, which is still near all-time high levels.

So, is Facebook a buy today? Jason says that, after today's pullback, he has become more interested in the stock again. With CEO Mark Zuckerberg still not yet 30 years old, investors can expect the story of Facebook to continue to play out over the next 20, or even 30, years.

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8/28/2015 4:00 PM
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