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Meta Materials shares spike after Facebook changes name to Meta

An indication of Meta, the brand new title for the corporate previously often known as Fb, is seen at its headquarters in Menlo Park, California, October 28, 2021.

Carlos Barria | Reuters

Meta Materials spiked late on Thursday, for a similar cause that Zoom Technologies rallied in 2019 and Signal Advance surged in January: It is all concerning the title.

Facebook co-founder Mark Zuckerberg on Thursday stated his firm will now be known as Meta. The official company title might be Meta Platforms and, beginning Dec. 1, the inventory will commerce below ticker image MVRS.

Meta Supplies has nothing to do with Fb. It is a Canadian materials science firm, whose expertise is used for issues like “transparently blocking a selected shade of sunshine, or invisibly heating a window in a automotive,” in accordance with its website.

Generally traders do not know or do not actually care.

After the shut of normal buying and selling on Thursday, shares of Meta Supplies, which trades below ticker image MMAT, surged as a lot as 25%, following a 4.8% achieve throughout market hours. With the rally, the corporate is value simply over $1.5 billion, a fraction of a % of the worth of the corporate previously often known as Fb.

George Palikaras, the CEO of Meta Supplies, tweeted on Thursday, “I want to cordially welcome @Facebook to the #metaverse.”

Meta Supplies is headquartered in Dartmouth, Nova Scotia, on the far jap finish of Canada, about 3,800 miles from Zuckerberg’s firm in Silicon Valley. Palikaras has a PhD in metamaterials, the web site says.

In an electronic mail to CNBC, Palikaras stated, “We love the AR VR and metaverse area and convey the perfect meta supplies to allow its industrial success. Software program and {Hardware} improvements might be essential.” 

It is not the primary time an organization has rallied based mostly solely on its title.

In April 2019, is a tiny Chinese language wi-fi communications firm named Zoom Technologies shot up greater than 80%. The pop got here simply as Zoom Video Communications, the buzzy video chat app, made its Nasdaq debut.

Clubhouse Media more than doubled throughout the day on Feb. 1, although nothing modified on the public relations, promoting and media distribution firm. Somewhat, traders have been giddy about social audio app Clubhouse, which was blowing up in tech and leisure circles. Tesla CEO Elon Musk instructed his Twitter followers a day earlier that he could be “On Clubhouse tonight at 10pm LA time.”

And in January of this 12 months, an obscure firm known as Sign Advance, which is so small that it trades over-the-counter, rocketed 1,100% after Musk equally touted a really completely different Sign to his followers.

Musk tweeted “use Sign,” referring to the encrypted messaging app that serves as a substitute for texting apps Fb’s Messenger, WhatsApp and Apple’s iMessage service.

Sign needed to make clear to customers and traders that it is not Sign Advance and is not even a for-profit firm.

Inventory picks and investing traits from CNBC Professional:

“It is comprehensible that folks wish to spend money on Sign’s document development, however this is not us,” Sign tweeted. “We’re an impartial 501c3 and our solely funding is in your privateness.”

Whereas merchants can attempt to get in on these strikes to make a fast buck, the rallies do not are inclined to final. Sign Advance is again to buying and selling at 79 cents, down 99% from its excessive in January of $15.80. Clubhouse Media closed on Thursday at $1.15, down 94% from a excessive of $17.99 after Musk’s tweet. Zoom Applied sciences bought off nearly all the beneficial properties from its large transfer by the top of buying and selling that day.

Meta Supplies has already skilled what it is wish to be a so-called meme stock, buying and selling based mostly on web chatter and Reddit-fueled momentum. The inventory traded as excessive as $18.40 on June 21, and closed up 58% that day. Greater than 200 million shares modified arms, in comparison with a typical day of lower than 10 million per day of late.

Even with the after-market soar on Thursday, Meta Supplies remains to be 69% beneath its shut on June 21.

WATCH: Facebook goes Meta



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