Facebook (FB) is planning to rebrand itself. The Verge reports that the social networking company plans to change its name. An announcement on the name change could be made as early as October 28, 2021, when CEO Mark Zuckerberg talks at the Annual Connect Conference. FB shares rose 1.39% to close at $339.99 on October 19.
Facebook develops products and platforms that allow people to connect and share experiences with friends and family on mobile devices and personal computers, as well as virtual reality headsets.
The new company name remains a closely guarded secret, with some senior leadership also in the dark. According to The Verge, the name change affirms the tech giant’s ambitions to be known for more than social media.
The rebranding drive will likely position the flagship Facebook app as one of the main products. The parent company will also oversee Instagram, WhatsApp, and Oculus, among others. The rebranding drive could also help separate the futuristic work that Zuckerberg has been working on from intense regulatory scrutiny.
Facebook has recently come under immense regulatory scrutiny over how it operates its social platform. Antitrust regulators have been trying to break the company up to curtail the amount of influence it has on the social networking space. (See Top Smart Score Stocks on TipRanks)
Facebook won’t be the first company to change its name as part of an effort to expand its ambitions. In 2015, Google reorganized, resulting in the creation of Alphabet. Snapchat also rebranded to Snap, Inc. in 2016.
This week, Credit Suisse analyst Stephen Ju reiterated a Buy rating on the stock with a $500 price target, implying 47.06% upside potential to current levels. According to the analyst, the market seems to have ignored Facebook fundamentals in the wake of negative data points around service outages and the Newsfeed algorithm. Ju insists advertisers are not in any way leaving the network amid the negative press.
Consensus among analysts is a Strong Buy based on 27 Buys, 5 Holds, and 1 Sell. The average Facebook price target of $422.88 implies 24.38% upside potential to current levels.
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