This is a common question that many investors have, since Facebook recently changed its corporate name to Meta. The short answer is yes, Facebook stock is the same as META stock. They are simply two names for the same company and stock ticker symbol.
The Facebook Name Change
In October 2021, Facebook announced that it was changing its corporate name to Meta. The name “Facebook” still refers to the company’s social media platform, but the parent company that owns Facebook, Instagram, WhatsApp and other products is now called Meta.
This name change did not affect Facebook’s stock ticker symbol, which remains FB on the Nasdaq stock exchange. The company explained that the FB ticker would stay the same because changing a stock symbol can be disruptive for investors.
So to summarize:
- The company formerly known as just Facebook is now called Meta
- The stock ticker symbol is still FB
- META and FB refer to the same company and stock
Why Did Facebook Change Its Name?
Facebook changed its corporate name to Meta to reflect its growing focus on building the “metaverse.” The metaverse refers to virtual shared spaces accessed through different technologies like virtual and augmented reality.
Facebook sees the metaverse as the next evolution of social connection and the internet. It wants to be seen as more than just a social media company. Mark Zuckerberg, Facebook’s founder and Meta’s CEO, believes the metaverse will be the successor to the mobile internet.
Renaming the parent company to Meta signals Facebook’s long-term strategy and ambitions to investors, developers, partners and the public. While users will still access apps like Facebook, Instagram and WhatsApp, the company is staking its future on becoming a metaverse pioneer.
META Stock Price and Performance
META’s stock price has declined significantly over the past year along with the broader sell-off in tech stocks. Here is how FB/META’s stock price has moved since the name change was announced in October 2021:
- October 28, 2021 (name change announcement): $316.92 per share
- October 28, 2022: $128.11 per share
This represents a 60% decline in META’s stock price over the past year. The stock hit an all-time high above $380 in September 2021 prior to the name change.
Key Factors Impacting META Stock Price
There are several reasons why META’s stock price has fallen so much in 2022:
- Lower user growth and engagement on Facebook
- Revenue growth has stalled as ad spending pulled back
- High costs and heavy investments related to the metaverse
- Increased competition from TikTok
- Privacy changes from Apple that impact Facebook’s ad targeting
- Recession fears that could reduce ad spending further
Meta is also trading at a lower valuation than in prior years. The P/E ratio has fallen from over 20x to just 12x projected 2023 earnings as of October 2022. This indicates investors are applying a lower multiple to META’s earnings given the growth challenges.
META Stock Forecast
Given the headwinds to Meta’s ad business and metaverse uncertainty, analysts have a mixed outlook for META stock over the next 12 months. Here is a sampling of recent META stock price targets from Wall Street analysts:
| Firm | META Stock Price Target | Rating |
|---|---|---|
| Morgan Stanley | $105 | Equal-Weight |
| Wells Fargo | $161 | Overweight |
| Raymond James | $118 | Outperform |
| Barclays | $150 | Overweight |
The average 12-month price target from over 50 analysts is around $150, which implies approximately 15% upside from current levels. However, given the sharp advertising slowdown and metaverse uncertainty, META’s stock could continue to see volatile price swings in the near term.
Should You Buy META Stock?
META faces some challenging headwinds currently, but could still be a solid long-term investment at today’s depressed valuations. Here are some pros and cons to consider:
Potential Pros
- Owns some of the world’s most popular social apps like Facebook, Instagram, WhatsApp and Messenger with billions of users
- Trades at just 12x forward earnings, which is cheap historically
- Strong balance sheet with over $40 billion in cash
- Massive potential if the metaverse develops as a new computing platform
- Focus on revenue diversity beyond just advertising
Potential Cons
- User growth has stalled, especially among younger demographics
- Facing very tough competition from TikTok
- Heavy investment costs for unproven metaverse business
- Apple iOS privacy changes are weighing on advertising capabilities
- Economic downturn could impact advertiser spending
- Potentially overvalued if metaverse fails to gain mainstream traction
As with any stock, Meta carries risks. But the low valuation and strong core business may make it an appealing investment if you believe in Meta’s long-term metaverse potential. However, near-term volatility is likely until Meta can demonstrate an advertising rebound and progress toward its metaverse vision.
Conclusion
In summary, Facebook stock is the same as META stock – they are just two names for the same publicly traded company and stock ticker symbol FB. Meta faces near-term challenges as ad spending has slowed, competition has risen, and the company invests heavily in its future metaverse vision. But at just 12x earnings with leading social apps still producing strong profits, Meta may be appealing for long-term investors willing to weather uncertainty and volatility surrounding the company’s transition toward the metaverse. However, more cautious investors may prefer to wait for greater clarity on Meta’s future trajectory before buying the stock.