Facebook, Inc., now named Meta Platforms, Inc., launched a series of new products in the augmented and virtual reality category during its Facebook Connect Conference on Thursday, Oct. 28.

The rebranding of Facebook to Meta highlights the growing importance of non-Facebook apps like Instagram and WhatsApp, and could make a difference in the company's negative brand perception, according to BofA Securities.

The Facebook Analyst

Justin Post maintained a Buy rating on Facebook with a $400 price target. 

The Facebook Takeaways

While Facebook will control the hardware specifications and operating system, it expects the metaverse to reach 1 billion people and generate hundreds of billions of dollars in revenue, Post said in a note. “If Street was questioning Facebook’s commitment to the Metaverse, there are no questions now with $10bn annual investment and new name,” the analyst wrote.

“Bold announcements at Connect suggest FB is trying to accelerate AR/VR development,” Post said. “Horizon platform name change could potentially be a step toward opening the metaverse to non-FB devices,” he added.

“While VR gaming is already somewhat established, we see interesting use cases in several areas with multi-billion revenue opportunities,” the analyst further mentioned.

FB Price Action

Facebook shares were up and closed on Friday at $323.57.