A sign of Meta, the new company name formerly known as Facebook, can be seen at its corporate headquarters in Menlo Park, Calif., On October 28, 2021.
Carlos Barria | Reuters
Meta Materials rose Thursday night, for the same reason that Zoom Technologies rallied in 2019 and Signal Advance jumped in January: it’s all about the name.
Facebook co-founder Mark Zuckerberg said Thursday his company would now be called Meta. The official company name will be Meta Platforms, and from December 1, the stock will trade under the ticker symbol MVRS.
Meta Materials has nothing to do with Facebook. It’s a Canadian materials science company, whose technology is used for things like “transparently blocking a specific color of light or invisibly heating a car window,” according to its company. website.
Sometimes investors don’t really know or care.
After the regular trading closed on Thursday, shares of Meta Materials, which trade under the ticker symbol MMAT, jumped 25%, after gaining 4.8% during market hours. With the rally, the company is worth just over $ 1.5 billion, a fraction of one percent of the value of the company formerly known as Facebook.
Meta Materials is headquartered in Dartmouth, Nova Scotia, in the far east of Canada, approximately 3,800 miles from the Zuckerberg business in Silicon Valley. Palikaras has a doctorate in metamaterials, the website says.
In an email to CNBC, Palikaras said, “We love the AR VR and metaverse space and bring the best meta-materials to enable its commercial success. Software and hardware innovations will be important.” The company said in a Press release earlier Thursday that he will be joined by Facebook Reality Labs in an online panel next week on the future of augmented reality glasses.
This is not the first time that a company has mobilized because of its name.
In April 2019, a small Chinese wireless communications company named Zoom Technologies climbed more than 80%. The pop came just as Zoom Video Communications, the trendy video chat app, debuted on Nasdaq.
Clubhouse Media more than doubled during the day on February 1, although nothing has changed at the PR, advertising and media distribution company. On the contrary, investors were stunned by the Clubhouse social audio app, which was exploding in tech and entertainment circles. Tesla CEO Elon Musk told his Twitter followers a day earlier that he would be “at the Clubhouse tonight at 10 p.m. Los Angeles time.”
And in January of this year, an obscure company called Signal Advance, which is so small it trades over-the-counter, climbed 1,100% after Musk also presented a very different Signal to his subscribers.
Musk tweeted âusing Signal,â referring to the encrypted messaging app that serves as an alternative to apps from SMS Messenger, WhatsApp, and Apple’s iMessage service.
Signal had to make it clear to users and investors that this is not Signal Advance and that it is not even a for-profit company.
“It’s understandable that people want to invest in Signal’s record growth, but that’s not us,” Signal tweeted. “We are an independent 501c3 and our only investment is in your privacy.”
While traders can try to participate in these moves to make a quick buck, rallies don’t tend to last. Signal Advance is back at 79 cents, down 99% from its January high of $ 15.80. Clubhouse Media closed at $ 1.15 on Thursday, down 94% from a high of $ 17.99 after Musk’s tweet. Zoom Technologies sold almost all of the gains from its big move at the end of trading that day.
Meta Materials has already experienced what it is like to be a so-called memes stock, trading based on Internet chatter and momentum fueled by Reddit. The stock traded at $ 18.40 on June 21 and closed 58% higher that day. Over 200 million shares have changed hands, compared to a typical day of less than 10 million a day recently.
Even with Thursday’s aftermarket jump, Meta Materials is still 69% below its June 21 close.
LOOK: Facebook becomes meta