We're Still A Few Years Away From True Virtual Reality Adoption

If you’re still kicking yourself for not recognizing the investment opportunity that smartphones presented a decade ago, Deutsche Bank analyst Ross Sandler believes that patient investors in virtual reality (VR) technology will see a similar widespread wave of adoption in coming years. In a new report, Ross discusses the business of VR and how long it will be before it takes over.

“The pace of innovation we see in VR reminds us of smartphone circa 2007, it's going to take a few years before the pieces are in place, but we remain hugely bullish,” Sandler explains.

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According to Sandler, VR will need a couple more years to get the kinks worked out, so there’s still plenty of time for investors to get in early.

One of the biggest challenges for VR is Full Presence, which completely tricks all the senses of the user and allows them to feel completely engaged in the VR world. Sandler mentions that HTC Vive currently does the best job creating Full Presence of any device on the market.

Mobile VR also has a lot of hurdles to clear, but Sandler anticipates position tracking, motion controls and higher frame rates will all help within the next few years.

Deutsche Bank currently has a Buy ratings on both Facebook Inc FB, maker of Oculus Rift, and Alphabet Inc GOOGL, maker of Google Cardboard.

Disclosure: the author holds no position in the stocks mentioned.