Mysterious Canadian Firm Meta Jumps 25% as Investors Mistake it for Rebranded Facebook
12:09 GMT 29.10.2021 (Updated: 08:57 GMT 15.11.2022)
© REUTERS / FacebookFacebook CEO Mark Zuckerberg is seen fencing in the "Metaverse" with an Olympic gold medal fencer during a live-streamed virtual and augmented reality conference to announce the rebrand of Facebook as Meta, in this screengrab taken from a video released on 28 October 2021.
Facebook's chief executive Mark Zuckerberg announced that Facebook would be rebranded as Meta Platform on Thursday. The news comes after a series of scandals have rocked the organisation, with the company being accused of promoting fake news, extremist groups, and choosing profits over public safety.
A Canadian firm Meta Materials, which claims to be engaged in developing functional materials and nano-composite products, has gained more than 25 percent on Nasdaq after investors mistook it for rebranded Facebook.
Meta Materials Inc., which trades with the symbol of MMAT and below the $5 ceiling for penny stocks, is worth more than $1.5 billion.
Facebook co-founder Zuckerberg on Thursday said that the company would be named Meta Platforms, and the stock will trade under ticker symbol MVRS from 1 December.
In a press statement on Thursday, the company said it would be joined by Facebook Reality Labs in an online panel next week on the future of Augmented Reality eyewear.
In June this year, the share price of the Canadian firm rocketed to almost $22 apiece, which was reportedly Reddit-fuelled momentum.
The firm's market capitalisation reached $6 billion in June because of internet chatter-based trade; however, the valuation decreased sharply after the share price slipped to less than $8 in the next few days in June, then below $3 in August. Meta Materials' shares are now changing hands at $4.56 per share - a long way off Facebook which is $316.92.