Daily Management Review

Facebook Rebranding To Focus On Metaverse Pushes Up Shares Of Meta Platforms


Facebook Rebranding To Focus On Metaverse Pushes Up Shares Of Meta Platforms
Following the announcement of the social media giant Facebook on Thursday of rebranding itself and changing its corporate name to develop the "metaverse", a shared virtual environment, the stock price of Meta Platforms Inc rose only marginally in premarket trading on Friday.
The new name of the company reflects the company's work invested in the metaverse instead of its namesake social media service, said Chief Executive Officer Mark Zuckerberg on Thursday. The social media platform will continue to be the same as before.
This rebranding effort from the company was made at a time when there are a lot of criticisms from lawmakers and regulators around the world over the dominant market power of the company, its algorithmic decisions, and the manner in which misinformation and abuses are managed on its platform.
According to analysts, a far better user experience for consumers using augmented and virtual reality technology will be possible to be achieved on the metaverse platform, expect analysts, which will include developing video games to using smart-eye glasses.
It is expected that the early adopters of this platform will be game creators, according to J.P.Morgan analyst Doug Anmuth, but added that there is also the high potential of fitness, workplace, education, and other enthusiasts to get onto the platform.
"Similar to its current strategy with FB Family, we believe the company plans to charge minimal fees over time to maximize the creator economy," Anmuth added.
Meta Platforms rose 1 per cent to $319.95 in premarket trading, after gaining as much as 4.3% on Thursday.
There was a 4.6 per cent rise in the shares of Meta Materials, an unrelated company, to $4.77 in pre-market trading on Friday.
The Canadian company is now worth about $1.33 billion, as of current share price