There is a jump in the stock of a Canadian company. Investors are apparently confusing it for a rebranded Facebook.
Meta Materials Inc., a materials-science company with the ticker symbol MMAT, has suddenly become a hot stock. Shares of Meta Materials were up 10% on Friday, before recently curtailing those gains. The action comes after Thursday’s 4.8% rally.
While Meta Materials has no affiliation with Facebook Inc., it will soon have a similar corporate name. Facebook is changing its name to Meta Platforms Inc., which aims to better position the company around the Metaverse.
“I applaud Mark Zuckerberg and Meta Platforms Inc.’s billion-dollar commitment to making the Metaverse a reality,” said Jorge Palikaras, chief executive and founder of MetaMaterials, in an email.
A similar mistake has happened in the past as well. Some investors put their money in Zoom Technologies last year, sending the stock higher rather than investing in the popular work-from-home videoconferencing service Zoom Video Communications Inc. This did not help in getting the ticker of Zoom Technologies to be zoom.
That’s what happened when individual investors were excited about movie theater chain AMC Entertainment Holdings Inc. Shares of AMC Networks Inc., which has the same ticker as AMC Entertainment, also rose. AMC Networks is an entertainment company whose brands include AMC and IFC.
Facebook announced its name change on Thursday as it faced scrutiny from lawmakers, users and researchers. The Wall Street Journal recently published a series of investigative articles detailing how the company knew its platforms were harmful in some ways and didn’t fix them.
Meanwhile, the meta content is different. The Nova Scotia-based company has a technology platform to help brands with products in areas such as 5G communications and consumer electronics.
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