On June 10, Beijing time, the social media company Facebook officially gave up the “FB” stock code and started a new stock code “Meta”.
On October 28, 2021, Zuckerberg announced at the Facebook Connect conference that the company name will be changed from Facebook to “Meta”, while emphasizing the company’s emphasis on the “Metaverse”. The company firmly believes that the “Metaverse” will replace the mobile Internet in the future.
On June 1 this year, Meta Corporation announced that its Class A common stock will be traded on the Nasdaq under the ticker symbol “Meta”, and the ticker symbol will change before the market opens on June 9, 2022. The company has used the ticker symbol “FB” since its 2012 IPO.
From changing the company’s name to using a new ticker symbol, Facebook CEO Mark Zuckerberg is trying to demonstrate his determination to bet on the Metaverse.
In April, the Financial Times reported that Meta Platforms Inc. is preparing plans to bring virtual tokens and cryptocurrencies to its applications, with the aim of using these virtual tokens to reward creators, or for loans and other financial services. Recently, Reuters reported that JPMorgan analysts revealed that Meta, the parent company of Facebook, will use billions of dollars worth of Broadcom custom chips to build its Metaverse hardware, becoming another Broadcom application-specific integrated circuit (ASIC) after Google. )client.
Before Zuckerberg was keen on the Metaverse, the development of Facebook was inseparable from the word “social”. In 2004, Zuckerberg founded the social networking platform Facebook. After becoming a giant, the company also acquired social media apps Instagram and Whatsapp.
Art Hogan, chief market strategist at National Securities, said companies that change their official names and ticker symbols are often trying to send a signal that their underlying business model has fundamentally changed. But he said, “I’m not sure there’s a real difference, I still call them Google and Facebook.”
However, the road to transformation is not easy. In the financial report released in February this year, Meta first announced the related performance of the Metaverse business, which is collectively known as FRL (Reality Labs, Facebook Reality Lab), including hardware related to AR (augmented reality) and VR (virtual reality). Software and Content.
The financial report shows that its Metaverse business will lose more than $10 billion in 2021, affecting the overall profitability of Meta. In the first quarter of this year, the business’s revenue rose 30.15% year-on-year to $695 million, while operating losses reached $2.960 billion.