"There was genuinely a need and a desire at the time for Facebook, the company, to rebrand into something else," said Leo Gebbie, principal analyst and director at CCS Insight. "The company Facebook wanted to make clear that it was more than just that one social website."

While the term metaverse predates Facebook, Zuckerberg's metaverse ambitions have existed inside Meta since 2014, when Facebook bought virtual reality headset developer Oculus and launched Reality Labs. Seven years and a global pandemic later, global video game industry revenue topped $193 billion. Meta — and Wall Street — saw an opportunity to capitalize on an increasing online population, riding in on a virtual reality headset wave.