Shares of Meta Platforms Inc (FB.O) rose marginally in premarket trading on Friday after social media giant Facebook rebranded itself to build the “metaverse,” a shared virtual environment.
Chief Executive Officer Mark Zuckerberg said on Thursday the new name reflects the company’s work invested in the metaverse, rather than its eponymous social media service, which will continue to be called Facebook.
The rebranding comes in the wake of criticism from lawmakers at regulators about the company’s market power, algorithmic decisions and oversight of misuse of its service.
Analysts expect the metaverse platform to create a better experience for consumers using augmented and virtual reality technology – from developing video games to using smart glasses.
JPMorgan analyst Doug Anmuth said that while game makers are early adopters of this platform, there is potential for virtual fitness, workplace, education and others to join the bandwagon.
“Like its current strategy with FB Family, we believe the company plans to charge minimal fees over time to maximize the creative economy,” Anmuth added.
Meta Platforms were up 1% to $319.95 in premarket trading, following a whopping 4.3% gain on Thursday.
Shares of Meta Materials (MMAT.O), an unrelated company, rose 4.6% to $4.77 in pre-market trading Friday. The Canadian company is now worth approximately $1.33 billion, as of its current share price.