Facebook (FB) has acquired virtual reality company BigBox VR for an undisclosed amount. The social media giant’s interest in the company spiked due to the popularity of the multiplayer VR game, POPULATION: ONE, which hit the market only nine months ago.
The game has been a top-performing title on Facebook’s Oculus platform. Notably, the entire team of BigBox will be joining Oculus Studios.
Vice-president of content at Facebook Reality Labs Mike Verdu said, “We are exploring many ways to accelerate VR, including investments in third-party content, AAA IP, hardware, and more, and we have many innovative plans for the next few years. We are thrilled to have BigBox VR joining our team.” (See Facebook stock analysis on TipRanks)
On June 7, Tigress Financial analyst Ivan Feinseth reiterated Buy rating and initiated a price target of $430 on the stock. The analyst’s price target implies 29.81% upside potential.
Feinseth said, “Facebook continues to benefit from the ongoing shift to social commerce and enhancing its applications with increasing communications and e-commerce functionality.”
“The company’s platform innovation continues to drive strong growth among active users. The ongoing launch of new applications and services, along with increased advertising revenue, will continue to drive incremental user and revenue growth,” he added.
Consensus among analysts is Strong Buy based on 29 Buys, 4 Holds, and 1 Sell. The average analyst Facebook price target stands at $387.03 and implies upside potential of 16.84% from current levels. Shares have gained 42.5% over the past year.
Furthermore, Facebook scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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