How to buy Facebook (META) stocks? – invest in Facebook
Do you want to buy Facebook (Meta) stocks ? On this page, you can read whether it is wise to invest in Facebook shares. You can also find the latest Meta stock price here and read an extensive analysis of the company.
How to buy Facebook (Meta) stocks?
Do you want to know where you can buy Facebook stocks? Take a look at the overview below:
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What is the current Facebook stock (Meta) price?
Are you curious about the current stock price of the Facebook (Meta) stock? Below, you can see at what price you can buy Facebook stocks right now:
Company information of Facebook (Meta)
Below, you can see the main company information of Facebook.
Analysis of Facebook (Meta)
Before deciding whether to buy or sell Facebook, it is important to analyse the stock first. In the overview below, you can see how Facebook has developed over the past period.
Stock prices of the last 5 days
In the table below, you can see the stock prices of Facebook of the last 5 days:
What does the Facebook stock price do in 2024?
Are you curious about what analysts think Facebook will do in 2024 and the years to come? We have combined the forecasts of analysts using Alpha Vantage data. Remember that this figure is just a prediction about the stock price of Facebook and that this prediction does not have to come true.
Why could it be smart to buy Facebook stocks?
- Strong brand: Meta Platforms (Facebook) is a well-known brand that is active worldwide and achieves strong financial performance.
- Diversification: In addition to Facebook, Meta also owns Instagram, WhatsApp, and Messenger.
- Growth: Meta still manages to attract more users. The company attracts around three billion active users annually.
- Advertisements: Meta manages to earn a large amount of money by selling advertisements. Due to the large amount of data, advertisers can specifically target certain groups of people.
- Dependency: Facebook’s success heavily relies on user engagement.
- Competition: Meta constantly has to compete with other companies to gain market share. When users switch to a new platform, Meta can lose a lot of money.
- Regulation: regulations around issues such as fake news are becoming stricter. New rules can significantly reduce Facebook’s profitability.
- Privacy: companies are also taking more measures regarding privacy. Within Apple, for example, Meta can track users less well, which makes it harder to display targeted ads.
- Reputation: Facebook can easily suffer reputational damage due to problems surrounding privacy, content moderation, and user data processing.
What are Facebook’s biggest competitors?
- Google: Google competes in the advertising market with Facebook and offers an interesting alternative platform with YouTube.
- TikTok: Users can share short videos within this platform.
- Twitter: Users can share short messages on this social network.
- Snapchat: With this application, users can send videos that disappear within seconds.
- Pinterest: This social network allows users to share their interests.
How to invest in Facebook stocks?
Step 1: Open an account with a broker
You buy stocks through a stockbroker. It is important to choose a broker where you can buy US stocks at a low cost. This way, you can save a lot of money when buying Facebook shares.
Do you want to know which broker is a reliable party to invest in Facebook shares? Take a look at our overview of brokers and find out where to do this best:
Next, it is essential to deposit money into your account. Decide on the amount of money you want to spend on Facebook stocks and deposit this amount into your account.
Step 2: analyse the Facebook stock
It is not advisable to buy Facebook stocks blindly. The stock price is very volatile and has gone through several developments. Therefore, it is critical to first determine when is a good time to buy the stock. You can use two types of analyses for this.
With fundamental analysis, you examine the company’s financial performance. Based on the numbers, you investigate whether the company has good profit potential in the future. You can also choose to apply technical analysis. In this case, you examine the price patterns to determine whether it is a good time to buy Facebook shares.
Once you have decided that it is indeed wise to buy Facebook stocks, you still need to decide on a good entry point. To determine a good entry point, you can look at the historical stock price development. If the Facebook stock pri e price is at a high point, and you see that it often drops at this point, it is probably better to wait. You can also decide to buy the stock in stages. For example, you can buy a few Facebook shares every month: this is called dollar cost averaging.
Step 3: buy Meta stocks
Within your broker account, you can submit an order to buy the Facebook stock. You can use either a market order or a limit order. With a market order, you buy the share directly at the current price. With a limit order, you buy the stock only when the price has dropped to a certain price.
Always determine a strategy in advance. Decide at what price you want to buy and at what price you would like to sell again. Occasionally, it can even be wise to set a stop loss. With a stop loss, you automatically take your loss when the stock price drops to a certain value.
Facebook to Meta
Facebook recently changed its name to Meta to indicate that the company’s focus is now on the metaverse. The metaverse is a virtual space where people can communicate with each other. Facebook plans to increasingly focus on other activities, such as e-commerce and gaming.
The metaverse should be accessible via VR headsets and smartphones. This new technology is still in its infancy, but Meta strongly believes in the future.
At the time of writing, the development of the metaverse mainly costs a lot of money and does not yet generate any revenue. However, if the metaverse becomes a success in the future, Meta will have a strong position. If you believe in the story behind the metaverse, it may be interesting to buy Meta (Facebook) shares.
How does Facebook make money?
Before you start investing in Facebook, it is important to understand how the company makes a profit. At first glance, Facebook does not seem like a (potentially) profitable enterprise. After all, it is a company that offers all kinds of services for free. However, it is important to remember that if you do not pay for a product, you are probably the product yourself.
Facebook therefore earns a lot of money by selling advertisements. The social network is very popular among businesses because it is possible to target users very precisely. This allows you to indicate which users can see your ads.
Facebook has also tapped into new revenue models. For example, in 2012 Facebook bought Instagram, where it is now also possible to advertise. In 2019, Instagram already generated an additional revenue of $20 billion.
Two years later, Facebook also bought WhatsApp for $19 billion. They already earn money through WhatsApp Business, and Facebook also plans to introduce advertisements within the application.
The biggest danger for Facebook: privacy
It’s clear that Facebook is a company with a lot of potential. However, there is also a great danger to Facebook’s future success: privacy. Facebook made headlines with various scandals, with the Cambridge Analytica scandal receiving the most attention. This organization obtained data from tens of millions of Facebook users and used it to help Trump with his campaign.
Various US regulators were not satisfied with the measures Facebook took, and the Federal Trade Commission (FTC) imposed a hefty fine of five billion dollars. This is, of course, bad for Facebook’s profitability and caused the stock price to drop significantly.
To prevent these kinds of mega fines in the future, Facebook will need to hire more people to protect users’ privacy and security. They have a large team dedicated to combating the spread of fake news.
If all of this functions well, the chance of a new hefty fine decreases. However, such measures will also reduce the profitability of the company. Furthermore, companies advertise mainly on Facebook because they have access to a lot of data. If Facebook is too restricted in collecting data, the network may become less attractive to users.
What do you think? Will the increased demand for privacy be a threat to Facebook, or will it be manageable?
The question remains: is Facebook a hype?
Still, we have to consider that Facebook may just be a temporary hype. Who is still using Myspace, the social network that was incredibly popular a few years ago? Although Facebook’s international presence may give it a longer life, it remains to be seen if Facebook can stay ahead of its competitors in the future.
It’s possible that Facebook will follow other dot com companies and become a small player in the market, just like Myspace. Facebooktries to prevent this by acquiring related companies. An example of a large company that Facebook has acquired is the popular WhatsApp, which almost everyone uses. Instagram is also now owned by the blue giant.
Sell Facebook stocks?
The Facebook stock has always been quite volatile. After its launch, there was a considerable drop followed by a significant increase. Many novice investors buy Facebook shares because they use Facebook and can identify with the company.
A website with a large portion of the world’s population as members is obviously very intriguing. The question is whether Facebook can take advantage of such a database full of personal data without hindrance from various privacy watchdogs and difficult governments.
Meta (Facebook) stock declines
In 2022, the stock price of Meta (Facebook) took a sharp downturn due to disappointing results. The price ultimately fell to its lowest level since 2015 but managed to recover somewhat in 2013.
However, this doesn’t necessarily matter for the savvy investor. By using modern brokers, you can speculate on both short-term stock declines and price increases! With a short position, you can speculate on a declining price.
Meta can be an interesting investment. With around three billion active yearly users, the company can generate high revenues with advertisements. Additionally, the company has acquired Instagram and WhatsApp, which allows it to reach a larger number of users.
However, there are also significant risks associated with an investment in Meta (Facebook). For example, the stock price has recently dropped significantly due to disappointing results. Under pressure from politics, Facebook must hire more moderators to control content. It’s also becoming increasingly difficult to collect data due to stricter privacy laws.
Compare Meta with the competition. In the past, Myspace went under because users migrated to a new social network. If Facebook’s reputation suffers too much damage, this could happen again.
Investing in Meta (Facebook) is clearly not without risk. Therefore, research for yourself whether the stock fits within your risk tolerance. That way, you can determine whether to buy Facebook shares.
When I was 16, I secretly bought my first stock. Since that ‘proud moment’ I have been managing trading.info for over 10 years. It is my goal to educate people about financial freedom. After my studies business administration and psychology, I decided to put all my time in developing this website. Since I love to travel, I work from all over the world. Click here to read more about trading.info! Don’t hesitate to leave a comment under this article.