News

: Confusion or meme play? Meta Materials stock soars after Facebook’s name change.

Facebook Inc.’s corporate name change to Meta landed with a thud for many Thursday, but it looks to have been good news for one Canadian company.

Meta Materials Inc.
MMAT,
+4.84%
,
a Nova Scotia–based material-science company that makes nanocomposites and other advanced engineering materials, saw its U.S.-traded shares soar more than 30% in after-hours trading Thursday, before settling down to an 18% gain in the extended session. That followed a nearly 5% gain in the regular session, after Facebook
FB,
+1.98%

announced its name change.

Read more: Facebook becomes Meta in rebranding seen as ‘an attempt at distraction’

The Maritime company, it should be noted, is completely separate from Meta né Facebook.

While confusion may have been a factor, it may not have been the only one: Meta Materials has recently gained popularity as a meme play with significant short interest.

Even the meme players on Reddit were befuddled. “Is the AH price action real, or are people buying MMAT thinking they are getting Facebook for really cheap?” one commenter wrote late Thursday on the subreddit r/MMAT. “I’d love for the price action to be for real — but have seen this before with zoom where people buy the wrong stock …”

Market Extra (April 2019): Zoom Technologies soared 56,000% in the past 30 days — as unrelated Zoom Video prepared its IPO

Meta Materials founder and CEO George Palikaras had taken the opportunity earlier in the day to welcome Facebook “to the metaverse.”

Meta Materials, with a market cap of about $1.2 billion, does have some ties with Facebook, though. In a statement Thursday, the company announced it will hold an online panel to discuss the future of augmented-reality eyewear, with Facebook’s Reality Labs listed as a participant.

Meta — the Silicon Valley one — is slated to begin trading under a new ticker symbol, “MVRS,” on Dec. 1. The ticker symbol “META” is already used by Roundhill Ball Metaverse 
META,
+0.18%
,
 an ETF that, coincidentally, counts Facebook as its fourth largest holding.

If the Meta Materials spike was due to a mix-up, then it would hardly be the first time a stock has soared after investors did not do their due diligence before buying. Zoom Technologies Inc., an over-the-counter penny stock, has seen multiple spikes over the past couple of years as investors confused it for Zoom Video Communications Inc.
ZM,
-0.81%
.

The Canadian Meta was in line for a further gain early Friday.

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

More in:News

Leave a reply

Your email address will not be published.

Next Article:

0 %