Facebook has been in the news recently a lot more than they would’ve liked. First came the expose piece by the Wall Street Journal showing the harmful effects of Facebook, and how they’ve been downplaying them for the past few years. Federal complaints were also filed, documents were leaked, and the SEC was also informed. Then, on a regular Sunday evening, Frances Haugen appeared on 60 Minutes to reveal that she was the whistle-blower and spilled out some more information. What came from it is that Mark Zuckerberg possibly could’ve lied to Congress under oath, and that Facebook’s hate speech moderation is highly inconsistent and only looks good when the public is interested. This turned into a scandal for Facebook, and in the past few weeks they’ve had to make a lot of promises and have strived for good PR.
Maybe even distracting PR, too. On Wednesday, Facebook announced that they will change their name to something else next week, and the new brand is unknown. Crazy, right? Facebook is one of the most known brands along with Twitter, Nike, and Coca-Cola. It’s risky, but we’ve seen tech companies like Snap and Alphabet perform it successfully, although people still call them Snapchat and Google. In a PR statement, they are changing their name to reflect their focus on the “metaverse”, though it seems fishy. To many, this feels like a PR stunt to distract people from the ongoing scandal they are facing, with the name change holding this alternative purpose. The fallout from the document leaks is still a lot, and Haugen is set to testify before the British Parliament soon. More articles are expected to be published regarding more document leaks, and the antitrust lawsuit is still looming over their head. However, it now looks like the lawsuit will be towards “Unknown Company” instead of Facebook. What do you think about the name change and its intentions?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.