Facebook's Virtual Purchase Is Very Real

Facebook buys virtual reality headset developer Oculus VR for $2 billion. Can't see how virtual reality fits in with Facebook? Here's our take.

Mar 26, 2014 at 4:20PM

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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Jason Moser has no position in any stocks mentioned. Mark Reeth has no position in any stocks mentioned. The Motley Fool recommends Facebook. The Motley Fool owns shares of Facebook. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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