Buy a stock of FB before the metamorphosis takes effect

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If we look at the shares Facebook (NASDAQ:FB) pred Meta-morphosis, the change of name and the transformation of the company seem to be exactly what the company needed.

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FB shares have risen nearly 10% since the Menlo Park company in California announced on October 28 that it was changing its name to “Meta platform” and adopted a new company logo similar to the infinity symbol.

The company, which continues to be run by Facebook founder Mark Zuckerberg (that is does not change),, it also changes its focus and focuses on the so-called “Metaverse,” which is a hypothetical space of virtual reality in which people communicate with each other through a computer-generated environment.

In the future, the social network Facebook will be one of many companies and brands under the corporate auspices of Meta.

Facebook officially becomes Meta December 1 and the symbol of the company’s shares will be changed to “MVRS” from “FB”. However, the stock already seems to be benefiting from the name change and brand transformation, which has risen from a stalemate after a difficult period in which the company was seemingly attacked from all sides for various ethical violations.

So when the stock price goes up, is it worth buying FB shares as it prepares to transform into its new Meta identity?

We build on success

Facebook is a bit of a two-headed plague. On the one hand, it is a social media platform that is ridiculed for spreading misinformation, sowing political origins, and enabling online bullying.

Facebook, on the other hand, is a cow caught when it comes to online advertising. With 3.58 billion active users per month in its collection of apps that includes Facebook, Instagram, Messenger and WhatsApp, the company earns the biggest dollars from advertisers worldwide. The vast majority of Facebook’s revenue comes from online advertising, and in the third quarter of this year, this revenues increased by 35% compared to a year earlier, while its net profit rose 17% to $ 9.2 billion from $ 7.8 billion a year ago.

Such growth, along with the recently announced Buy shares for $ 50 billion are the reasons why investors were willing to ignore criticism of Facebook, most recently the accusations of a former employee who became a whistleblower, Frances Haugen, who testified before the U.S. Senate that Facebook is well aware of the damage it is causing. applications and services are caused online, but he refused to address them for fear of harming his growth and stock price.

Renovating the brand in Meta is an obvious effort by Facebook to distance itself from such criticism and expand its success to become more than a social media platform that attracts advertising dollars.

New feats

Undoubtedly, there is a lot going on on Facebook outside the social media network for which he is best known to the public. In addition to Instagram, WhatsApp and Messenger, there is also Facebook is the owner of Oculus, which makes popular virtual reality headphones and on which Facebook intends to lead the creation of a metaverse under its new name.

To that end, the company said it will spend $ 10 billion next year to develop the technologies needed to build the metaverse, which is essentially a virtual reality environment where people work, play and communicate in the virtual world.

At the unveiling of its new name, Facebook introduced a number new products and gadgets that include a virtual reality headset called “Project Cambria,” smart artificial reality glasses called “Project Nazare,” and a line of video calling devices. The company has even unveiled what it sees as becoming a metaverse over time.

The media attending the rebranding event described the presentation as a “Pixar-like animation” showing users socializing as cartoon versions of themselves or as robots and other fantastic characters. While some journalists have criticized the presentation, it is clear that Meta will be more than just Facebook with a new company name and logo.

Buy FB shares for your profits

No matter what you think about the impact and practices of Facebook on social media, there is no denying that the company is a well-trodden cow and incredibly successful. As an organization, Facebook has the means to transcend its social media roots and expand into new and exciting areas, particularly virtual reality, where it sees a future opening up in the years to come.

Like Meta, the company will be able to grow into new ventures funded by advertising dollars created on Facebook. This is an approach that investors, apparently, are apparently adopting raising the share price.

For these reasons, investors should take a stand on Facebook and focus on profits rather than the problems caused by social media. FB stock is a purchase.

On the day of Joel Baglole’s publication had a long position on FB. The opinions expressed in this article are those of the author who are the subject of InvestorPlace.com Guidelines for publication.

Joel Baglole has been a business journalist for 20 years. He spent five years as a personal reporter for The Wall Street Journal, and also wrote for The Washington Post and Toronto Star, and for financial sites such as The Motley Fool and Investopedia.

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