Investors confused shares of 'new' Facebook - Meta with a Canadian company
After Facebook announced its name change to Meta, its shares have gone up significantly. The only problem was, was it really its shares, or was it a stock product of another company?
Investors are no stranger to confusing similar product names. So, in May 2021, they mistakenly began buying shares of the furniture company Ethan Allan due to the ticker identical to the Ethereum token ETH. Now a similar "disaster" has happened to buyers of Facebook shares.
In an unbridled desire to invest their money in the "updated" social network, now turned into a metaverse, investors mistakenly began to buy shares of the Canadian company Meta Materials a manufacturer of composite materials for various industries from the aviation industry to the automotive industry. As a result of the excitement, shares of Meta Materials on the Nasdaq stock exchange jumped 4.8%, and on the postmarket by 25%.
On the other hand, Reddit members noted that the company's shares have already cemented the title of "meme", showing a sudden rise of more than 260% a couple of months ago. Therefore, some believe that Facebook was not the reason for the takeoff. However, the incident happened too close to the news of the renaming, because the probability that the increase in quotations is not associated with the brainchild of Mark Zuckerberg is extremely small.
Meta itself, formerly known as Facebook, intends to start trading on the exchange only from December 1, 2021, and until then the ticker will remain unchanged FB.
Earlier, investors fell into similar embarrassment with techno startups Zoom, Signal, and others, confusing them with small local firms. The question, “when will people learn to take a closer look at what they are investing in?” Seems to remain open.
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