What's in a name? Meta Materials soars after Facebook identity switch (updated)

Meta Materials

29/10/2021 14:36

(Adds Meta Materials response, popular tweets, updates share
prices)
    By Sachin Ravikumar
    Oct 29 (Reuters) - Facebook may have unveiled its new
identity at a glitzy event on Thursday, but shares of a
lesser-known Canadian industrial materials company surged in an
apparent case of mistaken identity.
    As Facebook metamorphosed into Meta, shares of Halifax, Nova
Scotia-based Meta Materials Inc  MMAT.O  jumped 6% in opening
trades on the Nasdaq on Friday, following a 26% rise in
after-hours trading. Facebook shares were up 1.6%.  urn:newsml:reuters.com:*:nL4N2RP2H4
    Meta Materials' stock has already been a favorite among
retail investors using Reddit and social media, recording wild
swings in recent months. It hit an all-time high of nearly $22
in June.
    The company, which specializes in designing materials used
in a variety of industries including consumer electronics and
aerospace, has a market value of $1.3 billion, according to
Refinitiv.
    This is not the frst instance of shares reacting because of
mistaken identities — Zoom Technologies  ZNTO.PK  jumped at the
height of the pandemic, when the world flocked to the simiarly
named video conferencing service.
    But it was unclear whether just the similarity in names or a
coordinated push by "meme-stock" investors — or both — was
driving Meta Materials' shares higher.
    "Is the (after-hours) price action real, or are people
buying MMAT thinking they are getting Facebook for really
cheap?" asked one user on a Reddit community dedicated to
discussing Meta Materials' stock, that was created this March.
    Meta Materials CEO George Palikaras also appeared to get in
on the fun on Thursday, tweeting: "On behalf of @Metamaterialtec
I would like to cordially welcome @Facebook to the #metaverse."
    Palikaras pointed to a company announcement https://metamaterial.com/meta-presents-an-awe-panel-of-leading-global-experts
 from Thursday about an upcoming online talk featuring
executives from Meta Materials, Facebook's virtual reality (VR)
division and other companies, when Reuters emailed Meta
Materials for comment.
    Facebook's name change was revealed at its virtual and
augmented reality conference on Thursday.  urn:newsml:reuters.com:*:nL1N2RO2HV
    Social media was abuzz with news of Facebook becoming Meta,
with posts poking fun at the move receiving the most attention.
    "Changing name to Meat," burger chain Wendy's said in a
tweet liked by nearly 250,000 users. Twitter's official handle
wrote: "BIG NEWS lol jk still Twitter", garnering some 226,000
likes.

 (Reporting by Sachin Ravikumar in Bengaluru; Additional
reporting by Subrat Patnaik and Sruthi Shankar in Bengaluru;
Editing by Saumyadeb Chakrabarty)
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