Wall Street doesn’t like what it sees. Facebook’s stock price (NASDAQ:FB) is dropping in after-hours trading after the company announced its purchase of virtual reality startup Oculus Rift. The stock, which closed up on the day, is now under its open price of $64.25, resulting in a loss of $1.5 – $1.8 billion market cap.
The stock price slid considerably more following Facebook’s announcement that it was buying WhatsApp.
About an hour-and-a-half after the stock market close today, Facebook took to the wire to announce plans to purchase Oculus Rift for $2 billion in cash and stock. Citing a goal to make the world more open and connected, Facebook notes that it is now in a position to start focusing on next-generation platforms. Oculus Rift is at the forefront of virtual reality, which could become the next generation.
Facebook was slow to adopt mobile technology. It doesn’t want to miss out on VR if it becomes a big thing.