Facebook CEO, Mark Zuckerberg. Abdulhamid Hosbas/Anadolu Agency via Getty Images
After Facebook's "Meta" rebrand, shares in Canada-based Meta Materials surged on Thursday
Nova Scotia-based company appears to be a meme stock that has heavy short interest.
Redditors on subreddit R/MMAT scoff at the notion that Meta Materials' stock spike was due to Facebook's name changes.
The positive impact of Facebook's "Meta" rebranding to the social media giant has been evident in shares. However, it was not related to Canada-based Meta Materials.
Thursday's announcement by the tech giant was that it would change its corporate name from Meta to Meta. This will bring its brands under one corporate umbrella, as it moves to be "metaverse first."
Meta Materials' shares, which are listed on the Nasdaq, saw a 30% increase in trading after-hours. It manufactures materials that can "transparently block a certain color of light or invisibly heat a window in cars."
The stock, which is listed under the ticker $MMAT was up 4.6% during regular trading Friday, at $4.70 per shares. Facebook (now Meta), shares were up 2% to $324 each. The ticker symbol of the company will change from $FB into $MVRS but this will not happen until December 1.
Meta Materials now has a market capitalization of $1.2 billion thanks to the rally. This is just a fraction the $890 billion worth of social media giant Meta Materials.
George Palikaras, CEO of Meta Materials, sent a warm Tweet to Facebook on Thursday to welcome it into the virtual universe.
It's not clear if Meta Materials rallied due to confusion over ticker symbols, or a coordinated push from meme stock investors.
"Is there any price action (after-hours), or are people buying MMAT believing they are getting Facebook at a really low price?" One Redditor asked.
Nova Scotia-based Meta Materials has been noted for its potential to be a meme play with high short interest. Meta Materials has seen a 226 percent increase in traffic this year while Facebook has experienced a 16% rise.
Redditors on the subreddit, r/MMAT, dismissed the notion that confusion over Facebook's rebrand was behind the rise. Many suggested that the spike in price occurred after Palikaras tweeted, and not Facebook's announcement.
After a difficult few weeks, Facebook's rebranding is now complete. An internal whistleblower exposed Facebook's controversial practices and revealed that Instagram was bad for teens' mental health.
James Bore, a cybersecurity expert, said that Facebook's rebranding is an attempt to distance itself from its damaged reputation.
Bore stated that this was a very cynical way to ignore what Facebook has known for years and is now more widely publicized - that Facebook prioritizes profits over individuals and societal health. Bore also said that Facebook actively worked to spread misinformation and aid the weakening democracy. Bore added that it is part of a push to polarize society. "And it has done all this while senior management was fully aware of its impact."
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