Industry Overview - Virtual reality stocks represent publicly traded companies involved in developing, manufacturing, or supporting VR hardware, software, content, and related services, often including AR and MR technologies [2] - These stocks are grouped by investors due to their exposure to the commercialization of immersive technologies, which present high growth potential alongside significant risks [2] Company Summaries - **Meta Platforms, Inc. (META)**: Engages in developing products for connecting people through mobile devices, PCs, VR headsets, and wearables, operating in two segments: Family of Apps and Reality Labs [3] - **zSpace Technologies, Inc. (ZSPC)**: Provides augmented and virtual reality technology primarily for the education market, offering differentiated hardware and learning software for K-12 and workforce-oriented applications [4] - **The Glimpse Group, Inc. (VRAR)**: A VR and AR platform company that delivers enterprise-focused software and solutions, including QReal for 3D interactive models, Immersive Health Group for healthcare solutions, and Foretell Reality for social VR applications [5] - **DIH Holding US, Inc. (DHAIW)**: Operates as a robotics and VR technology provider in the rehabilitation industry, offering products like ArmeoPower and ArmeoSpring for arm and hand therapy [6]

Core Insights - Meta's recent layoffs in its Reality Labs division have put the popular VR fitness app "Supernatural" in a state of crisis regarding updates [1][4] - The app, launched in 2020 and acquired by Meta in 2022, has been a consistent top performer in Meta's VR app store [4] - The layoffs have led to a reduction in the app's team, resulting in no new songs or courses being added, while the annual subscription fee of $100 remains unchanged [4] - Users have expressed strong disappointment on social media, urging Meta to reinvest in the app [4] - The changes are part of Meta's strategic shift towards AI, moving away from the loss-making VR and metaverse business, which also includes the shutdown of three internal VR game studios [4]

Group 1 - Meta has conducted significant layoffs in its Reality Labs division, impacting the popular VR fitness app "Supernatural" which is now facing a content update crisis [1][4] - "Supernatural," launched in 2020 and acquired by Meta in 2022, has been a consistent top performer in Meta's VR app store, combining fitness courses with VR gaming experiences [4] - The layoffs have led to a reduction in the app's team, resulting in no new songs or courses being added, while the annual subscription fee of $100 remains unchanged, causing user dissatisfaction [4] Group 2 - The changes are part of Meta's strategic shift to redirect funds towards the AI sector, moving away from the loss-making VR and metaverse businesses [4] - In addition to "Supernatural," three internal VR game studios have also been shut down as part of this strategic realignment [4]

Core Insights - Kopin Corporation will participate in two major industry conferences in January 2026, SHOT Show 2026 and SPIE AR/VR/MR 2026, to showcase its latest innovations in optical systems and microdisplays [1][2] Group 1: Conference Details - SHOT Show 2026 will take place from January 20-23, 2026, in Las Vegas, NV, focusing on defense, tactical, and security technologies [3] - SPIE AR/VR/MR 2026 is scheduled for January 20-22, 2026, in San Francisco, CA, emphasizing advancements in augmented reality, virtual reality, and mixed reality technologies [4] Group 2: Company Objectives - The company aims to deepen customer relationships and support current and future programs through live demonstrations and technical engagement at these conferences [2] - Kopin will highlight its ruggedized display solutions and next-generation AR/VR optical systems, showcasing innovation, performance, and reliability [5]

Company Updates - Saks Global, a luxury retailer, has filed for Chapter 11 bankruptcy protection after running out of cash, allowing it to reorganize its business and manage debts [3] - Former Neiman Marcus CEO Geoffroy van Raemdonck has been appointed as the new CEO of Saks, succeeding Richard Baker, who held the position for only two weeks [4] - Saks has secured a financing commitment of approximately $1.75 billion, which is crucial for its restructuring efforts [4] Industry Insights - The core reading of December's consumer price index showed a monthly gain of 0.2% and an annual increase of 2.6%, which was lower than economists' expectations of 0.3% and 2.7% respectively [6] - The producer price index, a key indicator of wholesale cost growth, is set to be released soon, providing further insights into inflation trends [6] - Meta is shifting focus from virtual reality to artificial intelligence, resulting in a 10% staff reduction in its Reality Labs unit, equating to over 1,000 jobs [11]

Core Insights - Meta Platforms has announced layoffs affecting up to 1,500 positions in its Reality Labs division, representing about 10% of the workforce in that division [2][4][10] - The layoffs are part of a strategic shift away from virtual and augmented reality towards wearables and mobile device experiences [5][6] - This marks the largest tech layoffs of 2026 so far, raising concerns about potential job cuts in other non-AI sectors within the tech industry [10] Company Overview - Reality Labs is responsible for developing Meta's augmented and virtual reality products, including the metaverse initiative, which has not gained significant consumer interest [3][8] - The division currently employs approximately 15,000 workers, making the 10% reduction equate to around 1,500 job losses [4] Strategic Shift - Meta's Chief Technology Officer, Andrew Bosworth, indicated that the company is reallocating resources from the metaverse to focus on wearables and mobile experiences [5][6] - The decision to cut jobs in Reality Labs is part of a broader effort to make the business more sustainable and to support growth in wearables [6] Market Reaction - Following the announcement of the layoffs, Meta's shares fell by more than 2% in midday trading [9] - The layoffs reflect a trend in the tech industry where companies are increasingly prioritizing AI development over traditional tech sectors [10] Industry Context - In 2025, nearly 124,000 jobs were lost across 269 tech companies, with a decreasing trend in annual tech layoffs since 2022 [11] - The tech industry is witnessing a shift in focus, with AI becoming the primary area of investment, as evidenced by Meta's strategic changes [10][11]

Core Insights - Meta is preparing to lay off approximately 10% to 15% of its 15,000 employees in the Reality Labs division, focusing on teams involved in virtual reality headsets and Horizon Worlds [1][2] - The layoffs are expected to be announced this week, coinciding with a significant division-wide meeting called by Meta's CTO and Reality Labs chief Andrew Bosworth [2] - Reality Labs has incurred over $70 billion in losses since 2020, prompting Meta to shift its focus and spending towards artificial intelligence [2] Group 1 - The layoffs will disproportionately affect teams working on virtual reality products [1] - The upcoming meeting is described as the "most important" of the year, indicating potential significant changes within the division [2] - Bosworth has emphasized that 2025 will be a critical year for Reality Labs, which will determine its legacy [3]

Core Insights - The article highlights the top ten must-play software games, catering to various gaming preferences such as strategy, adventure, and action [1][8]. Group 1: Game Recommendations - Home Design 3D VR is an intuitive interior design application that allows users to design and renovate their homes in a virtual reality environment, suitable for all skill levels [1][8]. - Ultraleap Gemini is the latest hand-tracking platform from Ultraleap, offering significant improvements in flexibility and accuracy for capturing real hand movements, enhancing the virtual reality experience [1][8]. - Virtual Touchscreen 2 is a powerful computer control tool that captures user gestures via a webcam, allowing for customizable and flexible computer operations [9]. - SimpleClock is a practical desktop clock tool that synchronizes with the system clock and offers high customization options for users [9]. - The sequel to "The Cryptography" features 50 new puzzles that challenge players' cryptography skills, providing educational content to enhance understanding of cryptographic principles [9]. - InteriorDay is a video production software that enables users to create high-quality interior design videos with a rich library of materials and editing tools [10]. - Subjective Conquest is a game designed for live streaming platforms, allowing interaction between players and streamers, combining online streaming with gaming [10]. - FaceRig is a virtual character simulation software that allows users to create and interact with various virtual characters, enhancing user engagement [11]. - GDevelop is a tool for creating 2D games without coding, offering a user-friendly interface and support for various game types [11]. - World Island: Delivery is an open-world game that allows players to explore and create custom game maps, enhancing gameplay diversity and depth [12].

Core Insights - Meta Platforms is currently facing a critical juncture as it pauses the international rollout of its Ray-Ban Display smart glasses due to unprecedented demand in the U.S. and limited global inventory [1] - The smart glasses, which integrate augmented reality with everyday eyewear, were originally set for release in Europe and Canada in early 2026 but will now focus on the U.S. market as Meta aims to fulfill domestic orders and refine production strategies [2] Company Overview - Meta has been collaborating with EssilorLuxottica on smart glasses since 2019, with a renewed long-term partnership established in 2024 [3] - The Meta Ray-Ban Display glasses, priced at $799, were unveiled last year and represent Meta's first consumer-ready AI glasses, enabling users to watch videos and respond to messages via a neural-technology wristband [3] - Meta Platforms, headquartered in Menlo Park, California, is a major technology conglomerate known for its influential social media platforms, including Facebook, Instagram, WhatsApp, Messenger, and Threads [3] Market Position - Meta's market capitalization is approximately $1.65 trillion, positioning it among the largest technology companies globally [4] - The company's stock price has experienced significant volatility over the past year as investors assess its core advertising strength against increased spending on AI and infrastructure [4]

Market Overview - Major indices showed positive performance with the STAR Market 50 up by 1.84%, the Northern Exchange 50 up by 1.82%, the Shanghai Composite Index up by 1.50%, the Shenzhen Component Index up by 1.40%, and the ChiNext Index up by 0.75% [1] - The TMT sector led the gains, with the SW Panel sector increasing by 5.21%, SW Semiconductor Materials by 4.41%, and SW Vertical Application Software by 3.86% [1] - Conversely, the TMT sector also saw declines, with SW Communication Network Equipment and Devices down by 1.70%, SW Communication Cables and Supporting down by 0.68%, and SW Printed Circuit Boards down by 0.60% [1] Domestic News - Luxshare Precision is set to add a new VR glasses production line with an annual capacity of 9 million units, alongside an increase in the production capacity of VR glasses charging cases by 4.5 million units [2] - A semiconductor equipment R&D and production base project in Suzhou has been signed with a total investment of 1.05 billion yuan, expected to achieve an annual output value of over 1 billion yuan upon full production [2] - Deep Tianma has signed a long-term OLED materials supply and licensing agreement with UDC to support its OLED display production [2] - The new factory of Jinglong Technology for high-end semiconductor testing has been put into operation with a total investment of 4 billion yuan, covering AI, automotive-grade, and industrial-grade chip testing [2] Overseas News - Appfigures data indicates that the Manus mobile app is projected to reach approximately 4.5 million downloads by 2025, primarily from emerging markets like Brazil, Egypt, and India, with an estimated in-app revenue of 13 million USD for the year [3] - AMD has launched the Helios platform, boasting an AI computing capability of 2.9 exaflops and equipped with 31TB of HBM4 memory [3] - Texas Instruments has introduced the TDA5 chip for autonomous vehicles, utilizing a 5nm process and enhancing computation speed from 100 trillion operations per second to up to 1.2 quadrillion [3] - METI plans to increase its overall budget by approximately 50% to around 3.07 trillion yen, with significant funding directed towards the semiconductor and AI sectors [3] AI News - NVIDIA has officially launched the "Vera Rubin" platform, featuring the Vera CPU with 88 customized Olympus cores and the Rubin GPU capable of 50 quintillion floating-point operations per second [4] - WeChat has initiated the "AI Mini Program Growth Plan," committing resources to support developers and aiming for a significant increase in AI applications by 2026 [4] - The National Radio and Television Administration announced a month-long special governance initiative starting January 1, 2026, targeting the misuse of AI tools in altering classic content [4] Industry Tracking - Brain-computer interface startup Strong Brain Technology has completed approximately 2 billion yuan in financing, producing products that assist disabled individuals in controlling prosthetic limbs [5] - New Times has released the first "industrial-grade" embodied intelligent robot, SYNDA R1, designed for various operational tasks [5] - Dongfang Boiler has successfully completed a key phase of a national key R&D project related to stable and clean combustion technology [5] - Beijing has announced an action plan for building an AI innovation hub, aiming to achieve a core industry scale exceeding 1 trillion yuan within two years [5]