Despite the rebranding, it looks like Meta Platforms (NASDAQ:FB) will have to be FB just a little longer, at least on Wall Street. After previously announcing that on Dec. 1, all Class A shares of FB stock would switch to MVRS, Meta changed its plans. Today, the company announced it would postpone its ticker change until the first quarter of 2022.
In October, CEO Mark Zuckerberg announced Facebook was rebranding to Meta Platform. The move came as part of a long-term plan to contribute to the metaverse with its suite of products.
“Right now our brand is so tightly linked to one product that it can’t possibly represent everything we’re doing today, let alone the future. … From now on, we will be metaverse-first, not Facebook-first,” Zuckerberg said at the October connect conference.
The change comes with a host of important implications for Meta, and the future economy it’s trying to get ahead of.
What Does the Delay Mean For FB Stock?
So what exactly is the metaverse that Meta Platforms is chasing?
The metaverse refers to a digital-first future, where many of life’s real-world processes happen virtually. Zuckerberg describes a new kind of immersion, an “embodied internet, where you’re in the experience, not just looking at it.”
This plays out in surprisingly elaborate ways. Photorealistic avatars, VR integration, digital assets ranging from land to clothing, voice accommodation, socialization, travel, everything happening virtually. It’s under this futuristic concept that Meta’s new priorities seem clear. It’s focused on building for the next phase of the internet and all the functionality that comes with it.
While the Meta name change provided an across the board uptick to many metaverse-related stocks and cryptos, the delay in its ticker has apparently offended shareholders. Meta is down more than 3% today, as the rebranding hype seems to be dying down.
The hype is still hovering, however. According to Bloomberg, Meta’s average 12-month price target is currently $400, 18% higher than its current per-share price. With the metaverse estimated to be worth $800 billion by 2024, Meta seems to be propped up by future prospects.
It’s unclear exactly what day FB stock will become MVRS stock, and where it will go when the time comes. Rest assured, the change is on the way.
On the date of publication, Shrey Dua did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
