"Just double check what you are buying," he said. Time will tell if the new owners of a suddenly popular materials company will come to regret their investment or not, but Balashov's advice for how to avoid the problem in the first place is simple. #GoBeyond $MMAT #AR #VR Meta, meet META® :-) /2i2PMKwzFA- asked for comment, Palikaras pointed to a company announcement on Thursday about an upcoming online talk featuring executives from Meta Materials, Facebook's virtual reality (VR) division and other companies. On behalf of I would like to cordially welcome to the #metaverse. The company's CEO George Palikaras appeared to get in on the fun Thursday, tweeting, "On behalf of I would like to cordially welcome to the #metaverse." Meta Materials - which designs materials used in a variety of industries, including consumer electronics and aerospace - seems more than happy to play along. In 2017, his charitable foundation bought a Canadian tech company called Meta for an undisclosed sum.Īccording to iGan partners, the Toronto-based venture capital fund that was an early investor in Meta before selling the company to Zuckerberg, the company uses machine intelligence to help researchers stay on top of the latest academic research in their field. It's not even the first time a Canadian company named Meta has been swept up in Facebook CEO Mark Zuckerberg's interest in the metaverse. Mark Zuckerberg renamed his company Meta on Thursday based on a focus on the metaverse, a topic he has clearly had a strong interest in for several years. So when algorithms "read" news and make trades based on stories they screen,"They also make mistakes, they also confuse companies," Balashov says. "Portfolio managers mutual funds, hedge funds - they're still people," he said.Įven high-frequency trading algorithms participate, since some are programmed to buy shares that are moving in a certain way, regardless of what the underlying business is. Even pros and algorithms get mixed upīalashov's research says it's not just ill-informed retail investors who get their wires crossed - the smart money at major institutions also make those mistakes all the time. The same day, shares in a Florida door-making company with the ticker symbol of DOOR spiked. ![]() More recently, Zoom Technologies, which makes electronic-communication products for mobile phones, jumped at the height of the pandemic when the world flocked to the similarly named video conferencing service.Īnd in December 2020, food delivery service DoorDash went public in an IPO. Zoom profits soar as pandemic spurs boom in video chatting.It's investors just buying and selling the wrong stocks." "Something happens with a big company, and then there will be a reaction in the small company nothing actually happens with the small company. ![]() "It happens more often than we think," Balashov said in an interview with CBC News. In a research paper published by Rutgers University in 2019, Professor Vadim Balashov and co-author Andrei Nikiforov catalogued 254 instances of companies that saw fluctuations in their stock price related to events at another company that either had a similar name, or a similar stock ticker. The Canadian company is just the latest to become a beneficiary of a specific type of mistaken identity - one that sees investors pour money into one stock because they think it's another. That's more than double the usual daily volume.įacebook shares trade under the symbol FB, but in December, in keeping with the company's name change focusing on the metaverse, they will change their ticker symbol to MVRS. More than 12 million shares in the Canadian company with the ticker symbol MMAT changed hands during the trading session. announced it would be changing its name to Meta. Shares in Nova Scotia based Meta Materials gained 26 per cent in after-hours trading on the Nasdaq Thursday, after Facebook Inc. Shares in a relatively small Canadian materials company have been surging after some misguided investors apparently thought they were getting a deal on buying stock in the world's largest social media company.
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