It’s the end of an era for Meta Platforms; the FB stock ticker symbol long associated with Facebook is getting replaced by the new “META” ticker.
This change in ticker symbol comes after the social media giant rebranded itself as Meta Platforms (NASDAQ:META) last fall. The name and brand change is meant to reflect the company’s increasing focus on developing the metaverse. While the change is largely cosmetic, it does complete Facebook’s transformation. Essentially, Meta is removing the last vestiges of its former corporate identity.
META stock is down just under 1% today, bringing its year-to-date (YTD) decline to 42%. The former FB stock now trades at around $195 per share.
What’s Happening with META Stock?
Meta Platforms had planned to change its ticker symbol to “MVRS” last December, but the switch was repeatedly delayed. The reason for the delay may have been that Roundhill Investments had been using the META ticker for its Roundhill Ball Metaverse ETF (NYSEARCA:METV). Roundhill recently gave up the symbol, enabling Meta Platforms to use it for its stock.
This new ticker symbol is the last step Meta Platforms needs to take to shed its old corporate name and identity. Some analysts have speculated the name change could be a catalyst for shares, which have been badly beaten down this year. However, it doesn’t look like that is happening today.
Why It Matters
The rebrand for Meta Platforms first cropped up after the company faced numerous scandals related to its social media platform. Specifically, Facebook came under fire over accusations the company allowed misinformation, hate speech and more to be spread on the platform. Former Facebook executive turned whistleblower Frances Haugen appeared before Congress to criticize Facebook’s inaction, generating a lot of negative coverage for the company.
Following Haugen’s testimony, Facebook announced it would rebrand as Meta to emphasize its new focus on virtual reality (VR) and the metaverse. However, the rebrand has not helped FB stock in the near term.
After disappointing earnings, Meta Platforms’ share price has plummeted this year. META stock currently trades at a price-to-earnings (P/E) ratio of about 15 times. That’s lower than the P/E ratio of Coca-Cola (NYSE:KO).
What’s Next for Meta Platforms
As the FB stock ticker fades into history today, it’s taking the Facebook corporate identity with it. From here, Meta Platforms will continue to ramp up its focus on the metaverse and related technologies.
That said, the social media platform still looms large for the company. The vast majority of Meta’s revenue continues to come from Facebook ads.
On the date of publication, Joel Baglole did not hold (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.