Benzinga | Oct 29, 2021 08:25AM EDT

Why The Facebook Name Change Is A Big Deal, According To Gene Munster

Social media giant Facebook Inc.'s (NASDAQ:FB) name change to Meta is a clear strategic shift and a "big deal," according to Loup Ventures' Gene Munster.

What Happened "I think it is strategic. It surprised me that they're going this hard after it because you are putting a stake in the ground that says metaverse is going to be all that matters," Munster said in a discussion with Loup's Managing Partner Andrew Murphy.

Munster believes the Facebook name change sets a tone ultimately to where the Mark Zuckerberg-led company is headed over the next five-plus years. Loup Ventures is an investor in Facebook.

See Also: Facebook Tells Employees To Save Communications: What You Need to Know

Facebook name change outpaces what Google did when it changed its name to the "ambiguous" Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) and is similar to Apple Computer's rebranding as Apple Inc. (NASDAQ:AAPL), according to Munster.

He noted that Facebook will report on Reality Labs as a standalone operating segment, enabling investors to see how much the company will spend on the segment that is working on developing augmented and virtual reality devices.

Why It Matters: Facebook's rebranding as Meta indicates the company is betting big on the metaverse, a term that represents a meeting of the physical world with augmented and virtual reality.

Facebook's acquisition of Oculus for $2 billion in 2014 highlighted the company's intensified focus on the AR/VR segment.

It was reported earlier this month that Facebook plans to create 10,000 jobs in the European Union as part of the company's efforts to build the metaverse.

FB Price Action: Facebook shares closed 1.5% higher in Thursday's session at $316.92.