Last month, Facebook changed its company name to Meta as an indicator of its new focus with the metaverse. Many investors noticed this change and the opportunities linked to it. Experts predict massive profits coming to the company's stock exchange.
When Facebook CEO Mark Zuckerberg announced the name change, he said that Meta would be "the next evolution of social connection. Our company's vision is to help bring the metaverse to life, so we are changing our name to reflect our commitment to this future."
Facebook and Meta: What Is Metaverse
For reference, Merriam-Webster described "Meta" as an informal word "showing or suggesting an explicit awareness of itself or oneself as a member of its category: cleverly self-referential." On Zuckerberg's vision, this seemingly implies a world heavily based around a digital lifestyle.
On the metaverse video reveal, posted by Cnet, the company conceptualizes people operating with digital avatars. The metaverse manages all sorts of situations, like work, businesses, marketing, socializing and even home lifestyle. It is worth noting that, by extension, the metaverse could also incorporate the wide industry of gaming.
To emphasize, Zuckerberg believes that metaverse would be the combination of internet connectivity and smartphone utility.
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Metaverse Prediction: Experts Reveal Top Companies to Invest In
Although the metaverse is still in development, a lot of fans are already looking forward to its completion. One of the experts who pointed out Meta's growing potential is the investment banking company Morgan Stanley. According to Forbes, Morgan Stanley listed out companies that could earn billions from Meta.
Morgan Stanley said that the metaverse could see an $8 trillion market if it succeeds as the "next generation social media, streaming and gaming platform." On top of its basic functions, Meta could profit as an advertising and e-commerce platform for offline products and purchases.
By now, Meta should be investing billions of dollars for its metaverse project. However, the loss might not be that big since Meta has already established a durable business core and strong free cash flow. This development assures interested investors of their financial security in the company.
Morgan Stanley also emphasized gaming companies tied to Meta, one of them being Roblox. With its 47 million daily active users, Roblox might get a huge boost off Meta's ongoing progress. The same logic applies to Unity Software, an engine widely used in the video gaming industry. Gamers adopting meta could bring huge profits to all involved parties.
Lastly, Morgan Stanley said stock from companies that focus on augmented reality, like social media platform Snap, might be boosted in the future markets. Unfortunately, they did not elaborate on other company choices.
Note that this stock price prediction heavily relies on Meta's success. The critical determiner for its market surge is the completion of the metaverse and its incorporation to the general public.
However, just like any other stock prediction, readers should take this information with a pinch of salt.
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