Amid ticker switch and Sheryl Sandberg's departure, will META make a better buy than FB?
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Facebook parent Meta Platforms (NASDAQ:FB) is poised to change its ticker to "META" later this week, marking its ongoing switch in focus to the metaverse. Meanwhile, as Mark Zuckerberg's social media giant embarks on a new era, it will do so with a change in one of its key leadership positions. Longtime COO Sheryl Sandberg is stepping down from her position.
Given the major changes in store for the iconic megacap staple, can FB successfully reorient its business? At the same time, can the stock build momentum after worries about its core social media business have led to a massive stock retrenchment over the past four months?
Will the Metaverse Pay Off?
Late last year, Facebook changed its name to Meta Platforms (FB). This took place amid a charged political and PR landscape, with the company fighting off charges that it had put profits over user safety, after a whistleblower revealed details about the company's refusal to change its algorithms to suppress toxic content that received high engagement.
While the headlines made the timing of the brand change convenient, the company itself attributed the move to a desire to focus on the metaverse. FB made a big bet on the future of virtual reality and augmented reality interaction, pledging a $10B investment in these areas over a 12-month period.
This refocus has come as the company has faced a bumpy road in terms of earnings. In February, shares plunged more than 26% in a single day after issuing a weak earnings report. 
With worries of another disaster, investors went into FB's next earnings report with low expectations. In the lead-up to the release, shares slipped to a new 52-week low of $169 -- 56% below the 52-week high of $384.33 reached last year.
However, the latest earnings report sparked a wave of relief. The company beat expectations with both its profit figure and its number of daily users, triggering a one-day rally of nearly 18%.
Despite climbing off their low, shares have had trouble sustaining upward momentum. FB has spent the last few weeks in a trading range just off its lows, trading near $194 in Tuesday's intraday action.
FB is next scheduled to release quarterly results in late July.
Meanwhile, the FAANG stalwart continues the process of transition. On June 9, the company will change its ticker to META. 
On top of this, last week, high-profile executive Sheryl Sandberg revealed that she will exit her post as COO. While she will remain on the board, Sandberg, who took over the role in 2008, will step back from day-to-day responsibilities.
Is FB a Buy?
FB's push into the metaverse takes place amid rising skepticism about the core social media business. Amid the inconsistent earnings, analysts have increasingly looked askance at the sector. Last week, Piper Sandler downgraded rivals Snap (SNAP) and Pinterest (PINS), citing concerns over digital ad spending. 
In its note, Piper highlighted the fact that FB was performing "slightly better" but warned that the firm could still see headwinds from changes in iOS privacy policies from Apple (AAPL). Moreover, the firm pointed to Google (GOOG)(GOOGL) as the "star of the show" in the group.
Looking at Wall Street as a whole, analysts remain generally positive on FB. Of the 56 analysts surveyed by Seeking Alpha, 32 have issued Strong Buy recommendations on the stock, with another eight slotting it as a Buy. Meanwhile, 15 maintain a Hold rating, with a single bear arguing that FB constitutes a Sell.
Quantitative ratings present a more cautious situation. While getting high marks for profitability, Seeking Alpha's Quant Ratings ding the stock for slow growth and a high valuation. Specifically, FB receives an A+ for profitability, but it suffers a C- for both valuation and momentum. It gets a D+ for growth.

For more on FB's prospects, see why Seeking Alpha contributor Steven Fiorillo has a bullish view of the post-Sandberg era. Taking a more cautious view, fellow SA contributor Benjamin Halliburton calls the metaverse investment a "$10 billion headwind."