Zinger Key Points
- “Connection is evolving and so are we,” Facebook, now known as Meta Platforms, said back in October 2021.
- Some have questioned the decision with the metaverse growth stalling and job cuts happening since the rebranding.
One of the world’s largest social media companies made an announcement in 2021 that it would rebrand to highlight its new primary focus for growth. Here’s a look at how shares of Meta Platforms META have performed since it changed its name.
What Happened: Known as Facebook for many years, after its flagship social media platform, the company announced it would rebrand to Meta Platforms on Oct. 28, 2021.
“Connection is evolving and so are we,” the company said at the time. "The metaverse is the next evolution of social connection. Our company’s vision is to help bring the metaverse to life, so we are changing our name to reflect our commitment to this future."
CEO Mark Zuckerberg announced the name change at the Facebook Connect event.
“To reflect who we are and what we hope to build, I am proud to announce that starting today, our company is now Meta,” Zuckerberg said.
Zuckerberg said from that moment on the company would be “metaverse-first, not Facebook-first.”
The company changed its name to Meta Platforms and eventually changed its stock ticker from FB to MVRS. In 2022, the company announced it would change its ticker from MVRS to the current META.
Meta Platforms has undergone several rounds of layoffs over the last 12 months and analysts, shareholders and employees are questioning if the company invested too aggressively in the metaverse for growth.
The company’s recent earnings report saw several areas of strength, and also saw more comments from Zuckerberg about artificial intelligence rather than the metaverse.
Related Link: Meta Platforms AI Initiatives And Reels Program Praised By Analysts
Investing $1,000 in FB Stock: Trading as ticker FB at the time, shares trade at around $325.52 on Oct. 28, 2021, when the rebranding and new company focus were announced.
A $1,000 investment in Facebook shares could have bought 3.07 shares at the time. The $1,000 investment would be worth $737.78, based on a price of $240.32 for Meta Platforms shares at the time of writing.
Investing in Facebook after the rebranding announcement would have resulted in a loss of 26.2%.
For comparison, investing in the SPDR S&P 500 ETF Trust SPY, which tracks the S&P 500 Index, would have fared better. A $1,000 investment in the SPY at the time would be worth $915.05 today, down 8.5% over the last year and a half.
Read Next: Mark Zuckerberg Got A $10B Wealth Boost Thursday On Meta Earnings, Can He Crack The Top 10 Soon?
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