Actions of Facebook (NASDAQ: FB) are up a modest 2.5% as of 3:25 p.m. EDT on Friday – which may not sound like much, but on a $ 1,000 billion stock, that equates to an additional $ 21.2 billion in market capitalization. (For the context: if Twitter moved that much in one day, its stock would be up 41%!)
Why are Facebook shares increasing so much?
For a business that has its fingers in as many pies as Facebook, it’s hard to pinpoint a single reason for the move. It is possible, however, that investors are reacting to a feature article in the London newspaper. The telegraph yesterday, in which the newspaper describes Facebook’s latest project:
Horizons Workrooms, an “online space for virtual reality meetings that was developed by a group in the company’s London offices” is the product of a multi-year investment of “billions of dollars per year” by Facebook to create a “metaverse” in which people can interact outside of the real world.
As The telegraph reports, Facebook users with Oculus virtual reality (VR) glasses can use Horizons to virtually meet in cyberspace, with each participant represented by a cartoon VR avatar.
Image source: Facebook.
And that might just be the start. According to Facebook CEO Mark Zuckerberg, Horizons may well be the first step in transforming Facebook from a simple “social media” company like Twitter or Break, into a “metaverse company” of its own making.
Granted, Facebook isn’t the only company trying to create a metaverse. Fortnite from Epic Games, Roblox, and MicrosoftMinecraft’s have similar aspirations. But if money is an object, well, Facebook has more money than any of these little rivals to pay with to make its metaverse dreams come true.
If you ask me, maybe that’s why $ 1,000 billion-Facebook is worth a little over $ 1,000 billion today.
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Teresa Kersten, an employee of LinkedIn, a subsidiary of Microsoft, is a member of the board of directors of The Fintech Zoom. Randi Zuckerberg, former director of market development and spokesperson for Facebook and sister of its CEO, Mark Zuckerberg, is a member of the board of directors of The Fintech Zoom. Rich Smith owns shares of Roblox Corporation. Fintech Zoom owns shares and recommends Facebook, Microsoft, Roblox Corporation and Twitter. Fintech Zoom has a disclosure policy.
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