Why The Facebook Name Change Is A Big Deal, According To Gene Munster

Social media giant Facebook Inc.’s FB name change to Meta is a clear strategic shift and a “big deal,” according to Loup Ventures' Gene Munster. 

What Happened: “I think it is strategic. It surprised me that they’re going this hard after it because you are putting a stake in the ground that says metaverse is going to be all that matters,” Munster said in a discussion with Loup’s Managing Partner Andrew Murphy.

Munster believes the Facebook name change sets a tone ultimately to where the Mark Zuckerberg-led company is headed over the next five-plus years. Loup Ventures is an investor in Facebook.

See Also: Facebook Tells Employees To Save Communications: What You Need to Know

Facebook name change outpaces what Google did when it changed its name to the “ambiguous” Alphabet Inc. GOOG GOOGL and is similar to Apple Computer’s rebranding as Apple Inc. AAPL, according to Munster.

He noted that Facebook will report on Reality Labs as a standalone operating segment, enabling investors to see how much the company will spend on the segment that is working on developing augmented and virtual reality devices.

Why It Matters: Facebook’s rebranding as Meta indicates the company is betting big on the metaverse, a term that represents a meeting of the physical world with augmented and virtual reality.

Facebook’s acquisition of Oculus for $2 billion in 2014 highlighted the company’s intensified focus on the AR/VR segment.

It was reported earlier this month that Facebook plans to create 10,000 jobs in the European Union as part of the company’s efforts to build the metaverse.

FB Price Action: Facebook shares closed 1.5% higher in Thursday’s session at $316.92.