Facebook stocks drop 6% after the META Ticker change announcement while previously we saw that after Zuckerberg’s announcement of the name change, the stocks dropped by 42% so let’s have a closer look today in our altcoin news.
Today, the company known as Facebook doubled down on the metaverse identity and changed the NASDAQ ticker symbol from Fb to META. The rebrand didn’t bring more changes up front in fortune for the company either. At market close on Thursday, the stock known as FB dropped 6$, and META is now trading at $184 which is a number approaching the stock’s All-time low of $174. Twitter users joked that whatever the cause of the price drop is, the ticker change will likely be the remedy for the issues around the company. CEO Mark Zuckerberg announced the name change to Meta which was a rebranding phase that underscored the company’s commitment to the nascent metaverse as the future core of its business and the Facebook stocks drop 6%.
I’m sure this will solve all of their problems.
— Ben Matasar (@matasar) June 9, 2022
The Metaverse is the concept of the immersive collection of digital spaces and the worlds navigated by internet users via 3D avatars. Most developers like Zuckerberg think that the metaverse will become the future hub of shopping, entertainment, and work. The rebranding coincided with Facebook’s whistleblower Frances Haugen’s testimony before the US Senate where she alleged numerous ways in which the company permitted and encouraged hate speech and fake news.
The markets were cool to the company’s shift but since the announcement, Meta’s stock dropped by 42% and it then dropped 26% in one day on the heels of the fourth quarter of 2021 earnings report which shwoed stagnant user growth as the company shifts resources to the metaverse ambitions. Today’s stock drop came in what was already a difficult quarter for the stock market and the crypto-related companies. The NASDAQ was down by 2.75% and META’s drop was even bigger.
Will today’s drop however imply a further loss of confidence in the metaverse pivot for Zuckerberg? Or is this a result of the symbol change itself and a logistical hurdle that can impact the trading volume? The reprots show that researchers found a huge reduction in trading volume which often happens after a ticker change.
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