Shares of Facebook (NASDAQ: FB) is up to a modest 2.5% in 15:25 EDT trading on Friday – which may not sound like much, but on a $ 1 trillion share, it equates to an additional $ 21.2 billion in market value. (For context: If Twitter moved so much in one day, the stock would increase by 41%!)
Why are Facebook shares increasing so much?
For a company with its fingers in as many pies as Facebook is, it is difficult to find a single reason for the move. However, investors may be reacting to an article in London The Telegraph yesterday, where the newspaper describes Facebook̵
Horizons Workrooms, a “virtual reality webroom developed by a group at the company’s London offices” is the product of a “billion dollar a year” multi-year investment from Facebook to create a “metaverse” where people can interact outside the real world. world.
As The Telegraph tells, Facebook users wearing Oculus virtual reality (VR) glasses can use Horizons to meet virtually in cyberspace, with each participant represented by a VR cartoon avatar.
And this can only be the beginning. According to Facebook CEO Mark Zuckerberg, Horizons may well be the first step towards Facebook’s transformation from a purely “social media” company like Twitter or Snap, to a “metaverse company” of its own production.
Granted, Facebook is not the only company trying to build a metaverse. Epic Games’ Fortnite, Roblox, and MicrosoftMinecraft has similar ambitions. But if money is any object, well, Facebook has more money than any of these smaller rivals to pay to make their metaverse dreams come true.
If you ask me, that may be why $ 1 trillion-Facebook is worth a little more than $ 1 trillion today.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a Motley Fool premium consulting service. We are motley! Asking questions about an investment task – even one of our own – helps us all to think critically about investments and make decisions that help us become smarter, happier and richer.