On October 28, 2021, Facebook made an official name change to Meta Platforms. Rumors are rocketing through the digital universe about what the name change means and why it happened. Find out more below so you can draw educated conclusions about what the rebranding means for you or your investments.

Facebook the Company, Not the Platform

First, it's important to note that the app and social media platform known as Facebook continues to operate under that name. It's the corporate parent company that's rebranding and changing names.

Facebook the corporation is much bigger than a single app. It also owns Instagram and WhatsApp, for example. Those platforms will also retain their names and branding.

Setting the Stage for Broader Horizons

Statements coming out of Facebook indicate the main reason for the rebranding is to separate Facebook corporate from Facebook the social media platform. The company has had its hands in many technical pies for a while and wants to ensure investors and others understand its position in the digital landscape. It's a major player, not just an app that runs on the operating systems of others.

In fact, Facebook says it wants to own — or at least be one of the top players — in the metaverse. No, that's not something you'll see in the next Marvel movie. It's a 3D concept of the internet tech companies are working toward. Think SIMS,  but in real-life — you'll be able to zip into office meetings across the globe in hologram format, for example.

Breaking Away From Scandal

Facebook — the platform and the company — know a good bit about scandal. And negative press has hit it with some hard punches the past couple of years. The most recent relates to what are being called the Facebook Papers, a large collection of documents provided by a whistleblower and former Facebook employee.

All of the information in the Facebook Papers isn't known, as a consortium of publications are holding much of the data close to the chest. Copies of the papers were turned over to the Securities and Exchange Commission, though, and the consortium has published stories containing bits of information. Some of the most salient points relate to potential evidence that Facebook allowed political motivations to drive some decisions, may know more about radicalism on its platforms than it lets on and has some real challenges with moderating and maintaining its social platforms.

Real-World Impact of Facebook's Rebranding

Facebook's stock price had previously plummeted from a high of $382.18 on September 7, 2021 to around $312.22 on October 27. Following the official Meta name change, the stock rallied to $329.98 on November 1 before dropping off a bit again — probably due in part to an Arizona company challenging Facebook's right to the Meta name. The TL;DR is that it's too early to tell whether the rebranding will shoot Facebook stock to even higher levels. The Facebook Papers are still waiting in the wings to bring more obstacles to the company. But if Meta is able to pull off a major coup in the future metaverse, you probably want to be holding your stock when that happens.