🕶 Meta Unveils New VR Headset

This week, Meta announced its new, next-generation virtual reality (VR) headset, the Quest 3. The headset is scheduled to release this fall for $499 USD.

The timing of this announcement is notable, as it comes just days before Apple's Worldwide Developers Conference (WWDC), where Apple is set to unveil its own VR headset.

While specific details about Apple's device are yet to be revealed, industry insiders speculate that it will incorporate augmented reality technologies and work seamlessly with hundreds of thousands of iPad apps. Apple’s VR headset is expected to come with a hefty price tag of at least $3,000.

The Reality Labs unit at Meta, responsible for developing VR and augmented reality (AR) technologies, recorded an operating loss of $3.99 billion in the first quarter of the year, despite generating $339 million in revenue.

🗓 Key Takeaways from Meta’s Shareholder Meeting

During Meta's annual shareholder meeting, company executives revealed their plans for the future, addressing key focus areas:

1. 🔪 Staying Lean: Meta emphasized its commitment to cost-cutting measures and efficiency, citing decreased hiring. The company also aims to enhance productivity by developing AI-efficient tools.

2. 💰 Metaverse Investment: Meta reaffirmed its dedication to investing in the metaverse, dismissing claims that they are pulling back. Executives, including Zuckerberg, emphasized the long-term nature of metaverse investments and the integral role of AI in their plans.

3. 🤖 Artificial Intelligence: Meta is working on AI-powered features, including chat experiences on WhatsApp & Messenger and “visual creation tools” on Facebook & Instagram.

4. 🧑‍⚖️ Governance and Societal Role: Meta's governance, share structure, and societal role faced scrutiny during the meeting. Concerns were raised about the dual-class share structure, which gives Zuckerberg more voting power than average shareholders. Shareholders also expressed worries about safety, particularly in relation to children. Meta's past data privacy fines for children's safety were highlighted as ongoing concerns.

🎉 The Vancouver Investor Social was a Hit!

This Monday, over 100 members of the Blossom community gathered together in Vancouver to nerd out about the stock market and personal finance and listen to our amazing panelists Brandon & Marc Beavis, The Humbled Trader, Canadian in a T-Shirt, Joyee Yang and Financial Nirvana Mama discuss their thoughts on topics ranging from AI to tips for beginners. Here are a few takeaways from the session:

• 🏦 Almost all of the panelists had TD Bank as their top holding, with Marc mentioning that the company was older than Canada itself and has never missed a dividend payment.

• 🫧 Discussing the boom in AI stocks, Marc told investors to be careful - pointing to the rise and crash of Cisco’s stock during the dot-com bubble. Adrian, who worked in AI before starting YouTube, mentioned that he is very excited by the technology but reminded attendees that a company/technology can be innovative but still overvalued.

• 💸 Joyee discussed how ‘dollar-cost-averaging’ can be a helpful method for beginners worried about timing the market.

• 🏡 Tracy (Financial Nirvana Mama) discussed how we should approach buying a home with the same mindset as investing, thinking about asset appreciation, potential rental income, etc.

• 📖 Shay (The Humbled Trader) shared some tips for aspiring day traders, reminding attendees that day trading isn’t what you see on social media and isn’t a path to quick riches. She shared that new-day traders should expect to make little returns starting out and measure progress at first by their learnings rather than profits.

• 💡 Last but not least, Brandon mentioned that social media (like Blossom) can be a great place to source ideas, but investors should still do their own research to determine whether an investment is right for them.

🙏 A huge thanks to our sponsors Passiv, 5iResearch, BMO ETFs, and Stocktrades for making this event possible!

If you use Questrade, absolutely check out Passiv as Questrade actually pays for your Elite tier subscription (normally $99/year) so it’s free for you!

If you live in Calgary, Toronto, or Montreal you’re in luck! We’ll be hosting Investor Socials in your city in late July / Early August and would love to see you there! Stay tuned as we finalize the dates 😊

🚘 Tesla Model Y Becomes the World’s Best-Selling Car

Tesla’s Model Y became the world’s best-selling car in Q1 2023, making it the first electric vehicle to ever achieve this impressive feat. Telsa sold 267,200 Model Y units in the quarter, representing a 69% increase from the previous year.

China accounted for 35% of Model Y sales, followed by the United States at 31%. Model Y sales in China increased by 26%, while the US experienced a substantial 68% growth compared to the previous year.

Despite Tesla's strategic efforts to expand its market presence and offer more affordable options, the company experienced a decline in gross margins due to price cuts implemented in Q1.

CEO Elon Musk remains confident in this approach, focusing on prioritizing higher volumes and a larger fleet over higher margins. Musk envisions long-term profitability through services like full-self driving (FSD) and autopilot autonomy services, which he believes will be the key drivers of future financial success.

🎙 Top Discussions This Week

🗞️ What else you might’ve missed:

• C3.ai ($AI) plunges ~13% after missing analyst estimates for its revenue outlook.

• Toyota ($TM) will invest another $2.1 billion in an electric and hybrid vehicle battery factory.

• Amazon ($AMZN) employees (~1,900) are planning to walk off the job.

• US job openings in April rose to their highest level since January.

• Nvidia ($NVDA) has officially become the 1st chipmaker to achieve a $1 trillion market valuation.

• IBM ($IBM) CEO Arvind Krishna announced the company’s plans to replace ~7,800 jobs with AI.