Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB) will hold its Connect Conference on September 25 to 26, where the tech giant is expected to showcase its augmented reality (AR) and artificial intelligence (AI) offerings.
Bank of America analysts expect Meta to unveil a prototype of its next-generation AR glasses that feature holographic capabilities, with a potential broader release next year.
The company is also expected to launch a more budget-friendly virtual reality (VR) headset, the Quest 3S, at the event which could retail for about $299, compared to the current $499 price for the Quest 3.
Meta’s AI capabilities are expected to be a major focus of the event, analysts highlighted.
“We expect Meta to also showcase growing AI capabilities, and the event may also include new AI product launches for core apps, announcements on Meta AI, and new AI messaging capabilities,” they wrote.
“We think Meta may introduce more advanced AI chat features, advanced voice modes and celebrity voice integrations, which could be used across all of Meta's apps. Meta could also unveil new AI functionalities for WhatsApp and Messenger, including a preview of customer service bots, eCommerce integrations.”
Meta could also share an update on its large language model Llama, product demonstrations for how AI integrations across Facebook and Instagram and boosting engagement, or unveil a new AI subscription offering.
Analysts will be looking out for if Meta’s AR glasses have a “wow” factor, developer momentum around AR and VR to drive the ecosystem, the potential for VR cost cuts, signs AI products are driving core usage, and any potentially “killer apps” for AR and VR.
They repeated their ‘Buy’ rating on Meta, citing Meta's strong AI-driven engagement and ad growth potential, and a $563 price target, in line with the stock's closing price on Tuesday.