I gave my thoughts to InvestorPlace’s Kyle Woodley for a piece he wrote on Facebook’s (FB) Oculus. Here’s an excerpt:
Charles Sizemore, portfolio manager on Covestor and chief investment officer at Sizemore Capital Management, a registered investment advisor in Dallas, is among those who think virtual reality will stall again.
“Gamers might embrace it, but I don’t see a lot of people watching movies on their couch wearing a face mask,” he says. “A lot of the consumer innovations of recent years — 3D television, curved screens, etc. — have failed to make much of a splash. I expect this to be mostly a niche product.”
But even if Oculus does sink, don’t count Facebook out as dead money.
Facebook is great, goggles or not. Facebook is sitting near its all-time high following a 40 percent run over the past year, and has expanded its reach to more than 1 billion people on a hunk of rock that has just 3.3 billion Internet users. How much more can we expect Facebook to grow?
Even a true Oculus bear thinks Facebook is chock full of upside.
“Facebook is the lone standout success story in social media,” Sizemore says. “None of the other social media platforms have managed to monetize their user base like Facebook has. And the closest thing Facebook has to a true rival — Twitter (TWTR) — is still something of a niche player. Given that Facebook is only starting to find ways to monetize Instagram, the company should have a lot of healthy growth in front of it.”
You can view the full article here.
Charles Sizemore is the principal of Sizemore Capital. As of this writing, he had no position in any security mentioned in this article.