Shares of Meta Platforms Inc (FBO) rose marginally in premarket trading on Friday after social media giant Facebook rebranded itself to create shared virtual environment “Metaverse”.
Chief Executive Officer Mark Zuckerberg said Thursday that the new name reflects the company’s work invested in the Metaverse, not the social media service by its name, which will continue to be called Facebook.
The rebranding comes in the wake of criticism from lawmakers to regulators over the company’s policing of market power, algorithmic decisions and abuses on its service.
Analysts expect the Metaverse platform to deliver a better experience for consumers using augmented and virtual reality technology – from developing video games to using smart-eye glasses.
JP Morgan analyst Doug Anmuth said game makers are early adopters of the platform, but virtual fitness, workplace, education and others are likely to join the bandwagon.
“Similar to our current strategy with FB Family, we believe the company plans to charge minimal fees over time to maximize creator economy,” Anmuth said.
After gaining 4.3% on Thursday, the meta platform rose 1% to $319.95 in premarket trading.
Shares of an unrelated company, Meta Materials (MMAT.O), rose 4.6% to $4.77 in pre-market trading on Friday. The Canadian company is now worth about $1.33 billion as of its current share price.