Meta Platforms, the parent company of Facebook, is gearing up for its annual developer conference, Meta Connect, this week. Analysts anticipate a strong focus on augmented reality, with potential breakthroughs in artificial intelligence. The event, scheduled for September 25th and 26th, will be live-streamed on Meta’s official website and can also be watched in Horizon Worlds by Meta Quest headset owners. Mark Zuckerberg, Meta’s CEO, will deliver the keynote address on Wednesday at 1 p.m. ET.
One of the most anticipated announcements is a rumored lower-cost Quest 3S device, priced at $299.99. This could be a significant move, potentially challenging Apple and Snap, which offer competing products. Meta is also expected to highlight its Ray-Ban Meta smart glasses, further solidifying its presence in the smart wearable market.
Analysts believe Meta Connect will demonstrate a shift in focus towards augmented reality with hints of artificial intelligence integration. Justin Post, an analyst at Bank of America, expects Meta to unveil a prototype of next-gen AR glasses and prioritize mixed reality and augmented reality over virtual reality in their presentations. He predicts new AI product launches for core apps, advancements in Meta AI, and the introduction of AI messaging capabilities.
Meta could also launch a cheaper VR headset and showcase third-party VR headsets built on the Horizon Worlds software platform. The company might introduce new AI functionalities for Messenger and WhatsApp and provide updates on large language models. Post also believes there’s a possibility of Meta unveiling an AI subscription product.
Barton Crockett, an analyst at Rosenblatt, shares a similar outlook, stating that Meta Connect could dominate the AI news cycle for the week. He expects Meta to showcase a cheaper VR headset, unveil new AR glasses, and highlight AI advancements integrated into existing products. Crockett points out that the focus has shifted away from expensive rival devices to a cheaper version of the Meta Quest 3, given Apple’s sales struggles with the Vision Pro.
The key challenge for Meta lies in demonstrating how new products in virtual and augmented reality can offset the operating losses of the Reality Labs business segment. While Meta’s willingness to absorb substantial losses might hinder competition from Apple and Snap, the long-term profitability of these ventures remains a question.
With Meta stock soaring 64% year-to-date in 2024, the company’s performance at Meta Connect will be closely watched by investors and industry experts. The event promises to be a significant showcase for the company’s latest advancements and vision for the future of technology.
