Since Mark Zuckerberg unveiled the new name and strategy of Facebook, its stock has dropped 42% percent. The company's new symbol, which debuted on the Nasdaq stock exchange on Thursday, emphasized its metaverse-first brand. However, the brand did not immediately improve the stock's performance. The stock closed down 6.43 percent at the market.
The stock is currently trading at $184.00, which is close to its all-time lowest price of $174.95. Some Twitter users noted that the company's new symbol might not be able to address its various problems. In October, Facebook changed its name to Meta, which is a reference to the company's still-nascent metaverse. The company noted that it was committed to the development of the platform's digital universe. Through the use of 3D characters, users can travel through various digital environments.
Many creators believe that the metaverse will serve as the future of social interaction and work. The company's new strategy was launched following the testimony of Frances Haugen, a former employee, who accused the company of allowing the spread of hate speech and fake news. The market's skepticism about the company's new direction has also been reflected in its stock price.
Since the company's new strategy was announced in October, its stock price has dropped over 42%. In February, the company revealed that its user growth slowed down during the fourth quarter of 2021. This negative report came during a time when the market was still grappling with various issues related to crypto-related companies.
The stock's decline on Thursday was more than twice that of Nasdaq's drop of 2.75%. It is not clear why the market's reaction to the company's new symbol was so negative. However, it is believed that the change in the symbol might have caused a significant decrease in trading volume. According to a study conducted by Barrons, a significant drop in trading activity usually follows a change in the stock's symbol.
John Carter has been a content and ‘ghostwriter' for many popular online publications over the years. John is now our chief editor at NewsGrab.
