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META Strengthens VR Portfolio: Can It Stay Ahead of AAPL and GOOGL?
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Key Takeaways
Meta Platforms' Reality Labs revenues rose 16% year over year to $431 million in second-quarter 2026.
Meta VR Glasses feature a 5K display, Meta AI controls, and will launch in spring 2027 for $1,299.99.
Apple is enhancing Vision Pro, while Alphabet plans Gemini-powered Android XR smart glasses in fall 2026.
Meta Platforms (META - Free Report) is benefiting from its continued push to broaden its virtual reality (VR) portfolio and strengthen the ecosystem around Reality Labs. In the second quarter of 2026, Reality Labs revenues increased 16% year over year to $431 million, driven by Meta Platforms’ continued spending on augmented and virtual reality products. The expanding wearable portfolio is strengthening Meta Platforms’ positioning against Apple (AAPL - Free Report) and Alphabet (GOOGL - Free Report) , which are also investing heavily in AI-enabled wearable devices.
Meta Platforms’ growing smart-glasses portfolio remains a key catalyst. The company recently unveiled Meta VR Glasses, a roughly 100-gram virtual-reality device designed for entertainment, work and gaming. The glasses feature a 5K Infinite Display with micro-OLED panels, Dolby Vision, and Dolby Atmos, powered by Qualcomm’s Snapdragon Reality Elite processor. The device integrates Meta AI and supports eye, voice and hand-gesture controls. Meta VR Glasses use a two-part design, with compute, battery and storage housed in a separate tethered puck, helping keep the headset lightweight.
Meta VR Glasses are also the first IMAX Enhanced-certified VR device, offering 3D movies and more than 100 immersive live U.S. sports events annually. The device additionally supports multi-screen workspaces and more than 75 games at launch. Meta VR Glasses will go on sale in spring 2027 for $1,299.99.
However, Meta Platforms’ broader VR hardware business remains uneven. Reality Labs’ second-quarter growth was partially offset by lower Quest headset sales, even as AI glasses revenues grew strongly. While Reality Labs remains loss-making, the expanding wearable portfolio could provide Meta Platforms with another distribution platform for Meta AI, personal agents and immersive services. The upcoming Meta VR Glasses, scheduled to launch in spring 2027, could further broaden the segment’s addressable market across entertainment, gaming and productivity.
How Competitors Fare Against META
Meta Platforms is facing stiff competition from competitors like Apple and Alphabet, both of which are also strengthening their VR portfolio.
Apple is strengthening its VR portfolio through continued enhancements to Apple Vision Pro, expanding its utility beyond entertainment and productivity into accessibility-focused applications. The company is adding features such as eye-based control for power wheelchair drive systems, broadening Vision Pro’s use cases and ecosystem appeal.
Alphabet is strengthening its VR/XR portfolio through Android XR. In May 2026, Google unveiled Gemini-powered Android XR smart glasses, developed with Samsung, Gentle Monster and Warby Parker, with audio glasses set to launch in fall 2026. The glasses will support hands-free navigation, messaging, photos, translations and app-based tasks through Gemini.
META’s Share Price Performance, Valuation, and Estimates
META’s shares have rallied 17.8% in the year-to-date period, underperforming the broader Zacks Computer & Technology sector’s return of 21.7%.
META Stock Performance
Image Source: Zacks Investment Research
META shares are overvalued, with a forward 12-month Price/Sales of 6.77X compared with the Internet Software industry’s 4.42X. META has a Value Score of C.
META Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings is pegged at $31.38 per share, which has decreased 1.63% over the past 30 days. This suggests 33.59% year-over-year growth.
View the Zacks #1 Rank List
Image: Bigstock
META Strengthens VR Portfolio: Can It Stay Ahead of AAPL and GOOGL?
Key Takeaways
Meta Platforms (META - Free Report) is benefiting from its continued push to broaden its virtual reality (VR) portfolio and strengthen the ecosystem around Reality Labs. In the second quarter of 2026, Reality Labs revenues increased 16% year over year to $431 million, driven by Meta Platforms’ continued spending on augmented and virtual reality products. The expanding wearable portfolio is strengthening Meta Platforms’ positioning against Apple (AAPL - Free Report) and Alphabet (GOOGL - Free Report) , which are also investing heavily in AI-enabled wearable devices.
Meta Platforms’ growing smart-glasses portfolio remains a key catalyst. The company recently unveiled Meta VR Glasses, a roughly 100-gram virtual-reality device designed for entertainment, work and gaming. The glasses feature a 5K Infinite Display with micro-OLED panels, Dolby Vision, and Dolby Atmos, powered by Qualcomm’s Snapdragon Reality Elite processor. The device integrates Meta AI and supports eye, voice and hand-gesture controls. Meta VR Glasses use a two-part design, with compute, battery and storage housed in a separate tethered puck, helping keep the headset lightweight.
Meta VR Glasses are also the first IMAX Enhanced-certified VR device, offering 3D movies and more than 100 immersive live U.S. sports events annually. The device additionally supports multi-screen workspaces and more than 75 games at launch. Meta VR Glasses will go on sale in spring 2027 for $1,299.99.
However, Meta Platforms’ broader VR hardware business remains uneven. Reality Labs’ second-quarter growth was partially offset by lower Quest headset sales, even as AI glasses revenues grew strongly. While Reality Labs remains loss-making, the expanding wearable portfolio could provide Meta Platforms with another distribution platform for Meta AI, personal agents and immersive services. The upcoming Meta VR Glasses, scheduled to launch in spring 2027, could further broaden the segment’s addressable market across entertainment, gaming and productivity.
How Competitors Fare Against META
Meta Platforms is facing stiff competition from competitors like Apple and Alphabet, both of which are also strengthening their VR portfolio.
Apple is strengthening its VR portfolio through continued enhancements to Apple Vision Pro, expanding its utility beyond entertainment and productivity into accessibility-focused applications. The company is adding features such as eye-based control for power wheelchair drive systems, broadening Vision Pro’s use cases and ecosystem appeal.
Alphabet is strengthening its VR/XR portfolio through Android XR. In May 2026, Google unveiled Gemini-powered Android XR smart glasses, developed with Samsung, Gentle Monster and Warby Parker, with audio glasses set to launch in fall 2026. The glasses will support hands-free navigation, messaging, photos, translations and app-based tasks through Gemini.
META’s Share Price Performance, Valuation, and Estimates
META’s shares have rallied 17.8% in the year-to-date period, underperforming the broader Zacks Computer & Technology sector’s return of 21.7%.
META Stock Performance
Image Source: Zacks Investment Research
META shares are overvalued, with a forward 12-month Price/Sales of 6.77X compared with the Internet Software industry’s 4.42X. META has a Value Score of C.
META Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings is pegged at $31.38 per share, which has decreased 1.63% over the past 30 days. This suggests 33.59% year-over-year growth.
Meta Platforms, Inc. Price and Consensus
Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote
Meta Platforms currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.