The Bank of America on Facebook’s Unveiling of Meta
Facebook, Inc. is a social media company based in California.
During its Facebook Connect Conference on Thursday, the company unveiled a slew of new augmented and virtual reality products.
According to BofA Securities, the renaming of Facebook to Meta emphasizes the growing importance of non-Facebook programs like Instagram and WhatsApp, and could help to change the company’s unfavorable brand reputation.
Justin Post, a Facebook analyst, maintained a Buy rating on the stock with a $400 price target.
The Facebook Takeaways: While Facebook will control the hardware specifications and operating system, Post stated in a note that the metaverse will reach 1 billion people and produce hundreds of billions of dollars in income.
“If Wall Street had any doubts about Facebook’s commitment to the Metaverse before, those doubts are gone now, thanks to a $10 billion annual investment and a new moniker,” the analyst wrote.
“Facebook’s bold announcements at Connect signal the company is attempting to speed up AR/VR development,” Post wrote. “Changing the name of the Horizon platform could be a step toward allowing non-FB devices to access the metaverse,” he noted.
“While virtual reality gaming is now well-established, we see fascinating use cases in a number of industries with multi-billion-dollar revenue potential,” the analyst added.
Facebook’s stock was trading at $324.32 on Friday afternoon, up 2.33 percent.
According to industry analysts, the rebranding will position the corporation’s flagship app (Facebook) as one of many products belonging to a parent company, Meta, in the same way that Google established a holding company (Alphabet) in 2015 to house its various products. As a holding company for the social media platforms Instagram and WhatsApp, Meta will also be a strategic partner.
Following the announcement, the company stated that, effective on December 1, its shares will trade under the ticker MVRS, rather than the prior symbol FB. On Thursday, the stock price of Meta climbed by more than 3 percent, according to the company.
Earlier on Thursday afternoon, according to CNBC, Mr Zuckerberg delivered a speech outlining the company’s aspirations for the metaverse.