Why Is Facebook Changing Its Name and What Does This Mean for Investors?

Why Is Facebook Changing Its Name and What Does This Mean for Investors?

Rumor has it that Facebook is prepared to make a big announcement as early as the end of the month. While Facebook officials are sticking to the company’s stance to not “comment on rumor or speculations,” sources state that the big reveal could happen at Facebook’s annual Connect conference, held on October 28, 2021.

What’s the big secret? After nearly 28 years, Facebook is said to be changing its name. While the exact name change is being withheld from even top-level executives, this type of change likely signifies a dramatic shift within the company.

The bigger question is “What does a name change mean for investors?”

What does a name change mean for investors
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If the past is any indication of the future, this new revelation could be great news for investors. For example, Google stocks instantly rose by 6% after it announced that the company’s name change to Alphabet, Inc. would be followed by a complete restructuring process to revamp the company into a global conglomerate.

Indications show that Facebook is also using a name change to position the company as a leader in emerging technology. Some experts think that the name change may be linked to Facebook’s development of Horizon Worlds and Horizon Workrooms, which is set to change the way virtual meetings are held both in the workplace and in life.

Facebooks growing network of apps
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Others, however, strongly feel that the name change is bigger than just the additional of Horizon platforms to Facebook’s growing network of apps, which also includes WhatsApp, Instagram, and Oculus. Many believe that Facebook’s leader, Mark Zuckerberg, wants to be the face behind the creation of the metaverse - a digital reality that takes social media to the next level by combining it with augmented and virtual reality, online gaming, and some form of cryptocurrency. Since, the idea of a virtual metaverse is still foreign to those who haven’t read Neal Stephenson’s book, Snow Crash, where the term was first used, it's likely that Zuckerberg will use this name change as an opportunity to introduce the concept of a metaverse to the world. It’s also likely that Facebook will announce a restructuring plan that has already started with the hiring of 10,000 new workers in the European market.

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