buy meta shares on trading platform

How to buy Facebook (meta) shares?

Facebook is the number 1 social network in the world. After modest beginnings located in the United States, Mark Zuckerberg's vision has carved out a prominent place in several billion households with a constantly evolving range of services.

But is buying Facebook shares still an opportunity worthy of the name? Does the company, a member of GAFAM, still have an attractive aura for investors?

Our opinion and analysis: how and why to invest in Facebook shares?

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

The future titan of the global social network was officially launched on February 4, 2004 on the Harvard University campus, under the leadership of its creator Mark Zuckerberg. It is an immediate success. First, on the said campus, then nationally and internationally. It is the communication and networking product needed by pioneer Internet users.

The company’s IPO and the ability to buy Facebook shares come much later in the development process of the company. It was not until 2012, May 18 to be precise, that the Facebook group materialised its IPO with a unit price of the Facebook share set at $38. The enthusiasm is somewhat reserved during the first year of presence at the NASDAQ.

Although popular, the concept of Facebook and its potential for business development are struggling to convince investors, despite several major advances: the Pages feature to give visibility to professionals, integrated mini-games (Candy Crush, etc.), the first smartphone applications designed for the social platform and targeted advertising.

Several phases follow one another: decrease then increase with a price of the Facebook share which finds with difficulty its IPO price. As of July 01, 2013, the stock is trading at $36.84 at market close.

With the exponential growth of the Facebook hub and the many possibilities offered to both private and professional users (via the acquisition of several strategic companies and the development of specific applications), investors are showing less reluctance.

It is a 5-year upturn that begins with a steady rise in the Facebook share price on the stock market:

  • 62.57 dollars on January 02, 2014

  • 75.91 USD on January 02, 2015

  • 112.11 dollars on January 04, 2016

  • 130.34 USD on January 03, 2017

  • $ 186.90 on January 1, 2018
     

The price to buy Facebook shares is directly impacted by the financial crisis of 2018. The Facebook share price plunged to $ 131.31 on December 03, 2018. After this period of concern, a new bullish phase sets in with a new high reached a year later at 205.14 dollars.

Announcements related to the coronavirus pandemic will lead to a general downturn in the stock market and Facebook. Returned to $166.8 on March 02, 2020. Very closely followed, like many other Tech company stocks, by a powerful bullish phase that propels the Facebook share price to new heights: $293.2 on August 03 2020. 

Because of the not very encouraging developments of the COVID-19 virus, the markets curl up at the beginning of the year 2021. Then start again even stronger. Thus thwarting all the forecasts of the greatest stock market experts. On August 02, 2021, the FB share trades at the close at a price of $379.38 per unit. This represents growth since the IPO of + 898%.

How to invest in a Facebook (meta) share?

After these first observations on the potential of the Facebook company by its share price, we will study the best investment methods to buy Facebook shares. We will organise this post around 4 key steps:

  • The choice of broker with presentation of 3 brokers where opinions agree

  • A tutorial on how to open a trading account

  • Depositing money to be able to buy Facebook shares

  • Buy Facebook shares to save your possessions in your wallet while waiting for a capital gain

Step 1: Choose a stock broker

As indicated in the introduction, it is imperative to carefully choose your broker before buying Facebook shares online and supporting the development of the Facebook business and its communication network (post, comment, saving shared memories, etc. ).

The purchase of an FB share constitutes an undeniable pole of attraction (like Google) but, in our opinion, it seems important to us to learn upstream about the various elements justifying this interest and under what conditions to become a purchaser.

3 brokers stand out after internal study and web research (user comments, chart saves, etc.): 

 

The broker eToro is, in our opinion, one of the most popular online trading platforms in the market. Several elements justify this popularity with users around the world:

  • A social trading platform where it is possible to consult comments and opinions of other traders in the form of a post, to report stock market opportunities or to display each trader present among the Popular Investors. But also to copy the positions taken by them, which avoids a graphic study and a technical analysis

  • A wide choice of financial assets: forex currency pairs, stocks (including buying Facebook stocks), commodities, stock indices, ETFs and crypto currencies (ex: Bitcoin)

  • Trading in shares either in cash (via an Ordinary Securities Account / CTO) or via CFDs with leverage

  • Reliable technical support: web platform and mobile application

  • Competitive trading fees
     

Taken together, buying Facebook shares from an eToro trader account is a great investment strategy.

Secure, inexpensive (zero commission on the action of buying Facebook shares and ETFs) and easy to use, the eToro platform demonstrates its effectiveness, especially for novice traders, in this very competitive segment.

etoro logo on our trading platform comparison site

ADVANTAGES

✅     Specialised network with all the essential functions for users: post, comment, block, display or             save data relating to the Stock Exchange + copy trading

​✅     Large range of financial instruments

✅     Buy stock and cash ETFs / Buy sell CFDs with leverage

✅     Broker regulated in more than 150 countries

DISADVANTAGES

❌     No PEA for equities and ETFs

❌     Brokerage fees on certain assets

❌     Conversion fees on deposits

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

Step 2: Open a trading account

Here is our tutorial to follow to be able to open a trading account with one of these brokers and not block in the deployment of your investment strategy:

  • Go to the home page of the official website or the mobile application and click on Open an account

  • Fill in the required data: name, first name, email address, telephone, etc.

  • Complete your user profile with the KYC (Know Your Customer) questionnaire to receive recommendations from the platform according to your trader skills

  • Send customer service the documents requested to validate their profile: identity document (CNI or passport) and recent proof of address (water bill, electricity, telephone or last tax notice)
     

Registration takes a few minutes at most. The validation of the supporting documents can take a few days (between 1 and 3 on average), which can block the first real money investments.

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

Step 3: Deposit funds

Depositing funds is the essential step to be able to invest in a share of the Facebook multimedia group. Payment methods vary from broker to broker, on which we have given our opinion. Despite everything, a certain uniformity reigns on the platforms.

The user must go to his space online. Then click in the section reserved for incoming (Deposit) and outgoing (withdrawal) transactions. He must report the volume of his transaction (amount to be transferred) in the currency of his choice (variable depending on the broker), his method of payment (we will give a sample representation just after) and finally validate his transaction.

It should be noted that brokers reserve the right to open access to payment methods according to the profiles:

  • Visa or Mastercard credit / debit card

  • Bank transfer

  • Paypal (eToro / XTB)

  • Skrill and Neteller electronic wallet

  • Other payment solutions: Klarna, GiroPay, iDeal, PerfectMoney
     

The amount of money to deposit varies depending on the broker:

  • $200 (or equivalent currency after conversion) for eToro

  • No minimum threshold for XTB
     

The volume of money is immediately available for all the methods mentioned (credit card, Paypal, electronic wallet, alternative solutions) except for the bank transfer which can take up to 3 days to appear on the customer balance.

All the brokers mentioned are partners of the ICF program which guarantees the protection of individual client funds up to €100k in the event of bankruptcy of the intermediary. In addition, another very reassuring safeguard, the money deposited is stored in separate accounts.

This is called account segregation, meaning that the money does not belong to the broker but to a partner bank.

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

Step 4: Buy Facebook shares

How to buy Facebook shares? Here is our step-by-step guide taking an example from the eToro broker procedure:

  • The client goes to the Markets section.

  • He does a search for the Facebook action:
     

    1. Either by directly typing the name of the asset (Facebook or FB) in the search bar intended for this use.

    2. Either by carrying out a manual search in the actions section.
       

  • He selects his choice by clicking on the financial instrument.

  • A new window opens with the volume of Facebook shares to buy, the level of leverage and the levels of Stop Loss and Take Profit:
     

    1. In the event of a cash purchase, the trader does not change the leverage (X1). The backup is made automatically on the eToro CTO and the action line added to the wallet.

    2. In the case of CFD trading (buy Facebook shares in the event of a forecast increase in price / sell in the event of a planned decrease), the leverage can go up to 5:1. Be careful to handle this tool with care. The available margin volume can quickly block further opening of position. In addition, the losses are proportional to the increase in potential gains.
       

  • While all these elements are filled in, the user validates his order.

  • All the backups can be found in the customer's wallet.

Why choose Facebook Share?

What are the reasons that might lead us to buy a Facebook stock? What are the reasons that justify the forecasts made by expert analysts?

Can we draw parallels with another member of GAFAM (GoogleApple, Facebook, Amazon, Microsoft)? Here is our summary opinion.

We can measure the growth potential of the Facebook group by quickly browsing its history:

  • Launched in 2004

  • 2006: Yahoo takeover offer for $1 billion which is refused by Mark Zuckerberg

  • 2011: valuation of the company estimated at 50 billion USD

  • IPO (NASDAQ) in 2012 at $38. Current value: $376

  • 1 billion users in 2012/ 2 billion in 2020

  • Vast buyout campaign for companies with high technological potential:

    1. Instagram (2012)

    2. WhatsApp and Occulus (for 2014 alone for a total of 25 billion USD)

    3. Giphy (2020)

  • Sales balanced 50/50 between the United States and the rest of the world

  • A steady increase in turnover even if the results for 2020 and 2021 could be a little less spectacular
     

There are other reasons why buying an FB share is a worthwhile investment:

  • Since its launch in 2004 on the Harvard campus, Facebook has become much more than a social network to publish a post, leave a comment or save your favourite photos in albums. Buying Facebook shares naturally means diversifying your stock market wallet because the company buys a lot of start-ups in the Tech sector.

  • The group's vision goes well beyond simple human-to-human exchanges (post, commentary, saving and sharing of common memories). Its financial investment is directed in various and promising fields such as virtual reality (Occulus) and artificial intelligence.

  • Despite its massive investments and the omnipresent competition (on the social network part, TikTok in the lead), the company's profits are still very comfortable.

  • An economic model based on the sale of advertising space for advertisers which showed some limits during the COVID-19 crisis but which still remains very effective

Facebook Company Information

In order to complete our overview and to support our rather positive opinion on the plan to buy a Facebook share, we have gathered some key data on the American company.

trading info on facebook

Facebook share dividends

Like a Google or an Amazon, the Facebook company does not distribute dividends to its shareholders. Why?

For reasons similar to the two comparative examples cited. Indeed, the Facebook group is one of the companies in the Tech sector with a strong development (technological and commercial), it is therefore strongly recommended that this type of structure reinject directly into their cash the amount of Facebook dividends to support the deployment of the company.

This allows consolidation of the value of the FB share over the long term, which directly benefits shareholders thanks to this continuous valuation.

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

CONCLUSION: SHOULD YOU BUY A FACEBOOK SHARE?

We can only give a positive opinion on this type of investment. Buying a Facebook share is a safe bet to have in your stock market wallet.

All the indicators are in the green for the group which continues, without slowing down, its development. The world-famous social network is a gateway to the high-tech conglomerate that Mark Zuckerberg has built, with a keen vision of the needs of tomorrow.

It should be noted that if the health crisis lasts a long time, this could have serious repercussions on advertising revenues. However, the group's financial health and the price to buy Facebook shares are strong.

The competitor TikTok begins to overshadow the American giant which is sometimes associated with a social network for old people. The years to come will set the tone. Today, buying Facebook shares is a safeguard of capital that should continue to grow.

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