How to buy Facebook (Meta) shares in 2022
Wealth is being destroyed and ravaged in the US stock market. In the last one year, billions of dollars have been lost in the stock value of most global brands. It does seem as if tech companies are feeling the heat most. But a particular brand has been in the lips of most people as they are probably the most hit. That brand is Facebook, now known as Meta. In just a little over a year, Facebook share has gone from $353 to around $97 as at the close of business yesterday.
Many people are ‘pitying Mark Zuckerberg’ whose net worth has been hugely affected by this. His net worth has actually fallen from an all-time high of $142 billion in 2021 to $50.3 billion in September.
But I see opportunity here. Yes, opportunity, not just for Mark alone, but for any smart investor. As I write, Meta shares is exactly where it was 4 years ago. So it is safe to say that there have been a free fall in the share value of Facebook (Meta).
But if I were to be your investment advisor I will advise you to rush and buy Facebook shares right now. Yes, in my opinion, this is the best time to buy Facebook shares.
However, before I go ahead and share with you how to buy Facebook shares if you so desire, let me first explain to you why Facebook shares is crashing at the moment.
Why Facebook Shares is Crashing
1. Data privacy scandals and anti-trust investigations
2. Investors concern over the viability of the Metaverse project (some feel it may not be worth the hype)
3. It is not just a Facebook problem – other brands are also losing due to serious issues of global economic concern like the Russia/Ukraine war, rising inflation rate and higher interest rates.
4. More competition from other social networks, like TikTok
Why You Should Buy Facebook Shares
- Meta Platforms Inc. (META) is a leading internet content & information business based in the US.
- It’s flagship brand, Facebook is the biggest social media company in the world
- The company is still growing and evolving beyond just a social media brand
- The metaverse might yet be theirs to own
- Most importantly, their shares is at what could be its lowest ebb – I don’t see it get worse than this
But the question to ask is ‘how do one buy Facebook shares?’
So if you are among those asking the question of how to buy Facebook Shares this post is for you. So stay tuned as I share with you a guide on how to buy Facebook shares from trusted platforms.
How to Buy Facebook (Meta) Shares
1. Compare and Choose a Trading Platform to Use
The first thing to know when you want to buy Facebook shares is that there are different platforms where you can get it. Some of the popular platform of choice include eToro, Sofi, Robinhood, Public.com, Tastyworks, Webull and JPMorgan. However, each of these platforms have its pros and cons. For that reason, I will advise that you run a platform comparison analysis before you decide on which of them to trade with.
2. Open a Brokerage Account
The second step in your decision to buy Facebook shares is to open a brokerage account in any of the platforms you choose in step one above. Simply complete an application with your details.
This is actually the same process you go through when you want to buy any other stock. It is the brokerage account that you need to handle the transactions. Once again, available services, fees and investment options differ from one broker to the next. So ensure not to skip the platform comparison analysis to be sure to find one that is best for you.
3. Choose an Account to Match Your Goals
After you settle on the right brokerage platform, decide what kind of account you need. The type of account you choose should be a direct consequence of your investment needs or goals.
The account could be:
- Retirement accounts. Individual retirement accounts (IRAs) give you tax advantages when you save for retirement. IRAs come with one big limitation though: If you withdraw money before you are at least 59 ½, you’ll owe a 10% penalty, plus any applicable taxes.
- Taxable accounts. While taxable brokerage accounts don’t offer any special tax benefits, you can withdraw funds at any time, for any reason. This gives you flexibility when it comes to building general purpose wealth.
So the choice is yours.
4. Decide How Much to Spend on Facebook Shares
When buying individual stocks, there are a few factors you should take into consideration. To determine how much money to invest in Facebook, make sure you ask yourself the following questions:
- What’s your budget? Before buying a stake in Facebook, consider your other budget items. You don’t want to use your life savings to invest in just one company shares. You have bills to pay and even emergency funds to consider.
- What’s Facebook’s current price? Like all stocks, shares of Facebook fluctuate in price constantly. You can certainly buy a single share of Facebook. But consider that you could also purchase a part of a share, known as a fractional share. Some Brokerages like Charles Schwab, Fidelity, Stash and Robinhood allow investors to purchase fractional shares.
- What’s your investing strategy? You may choose to make a single purchase of Facebook all at once or you can use dollar cost averaging by purchasing the same dollar amount of the stock at regular intervals, no matter what the stock costs at the time. Dollar-cost-averaging can help reduce your risk of volatility and save you money on the cost-per-share over time.
- What about your other investments? How does Facebook fit into your overall investment strategy? Do you own a lot of other large-cap technology stocks, or will Facebook be your first investment in this sector? Making sure you have a diversified portfolio that represents several different industries and company sizes can help ensure a healthy portfolio.
Honest answers to the above questions will guide you in making not just a better purchasing decision, but also in knowing the exact amount to spend.
5. Calculate The Number of Facebook Shares to Buy
Once you determine the amount you want to spend on Facebook Shares and the current price, the next step is to calculate the number of shares to buy. Most online brokerages have a share calculator attached to their stock purchase process. Otherwise, the calculation is simple:
Total Amount Desired to Invest / Price per Share = Number of Shares to Purchase
For example, if an investor have $5,000 to spend on Facebook shares at the current rate. The current price per share for Meta is $99.1 as at the time this post was made. So a budget of $5,000 will give the investor a total of 50.45 shares.
6. Determine Your Order Type and Place Your Order
You can request that your brokerage purchase shares of Facebook stock at the current price or use a more advanced order type, like limit orders or stop orders. These types of orders only purchase shares once the stock price falls below a certain threshold.
Facebook is traded on the Nasdaq stock exchange, and its shares can be bought or sold between 9:30 a.m. and 4:00 p.m. ET, Monday through Friday. The Nasdaq allows pre-market and after-market trading. But not all brokerage platforms that option. If yours do, it is usually:
4:00 a.m. until 9:30 a.m – for pre-market trading hours and
4:00 p.m. until 8:00 p.m. ET – for after-hours trading
Whatever be the case, you can still place an order anytime. What happens is just that if you place it outside of the hours your brokerage allows you to trade, it will not be processed until trading resumes the next day or later in the day as the case may be.
7. Evaluate Your Facebook (Meta) Shares Performance
Once you own Meta stock, you should periodically review your investment and its performance.
To evaluate the performance of any stock, start by reviewing the annualized percent return. This will give you a number you can compare to other assets as you gauge how well your investment in META has performed.
Compare Facebook’s performance to benchmark indexes such as the Nasdaq 100 or the S&P 500. This shows you how Facebook has been doing in comparison to the stock market in aggregate.
Since Facebook is publicly traded, it is required to file both Form 10-K annual reports and Form 10-Q quarterly reports to disclose its performance and finances.
Facebook provides this information on its investor relations site, and it can also be found on the SEC database. If looking through these reports feels like you’re trying to read Latin, try reading expert analysis of these reports from sites like Forbes, Investopedia, Business Insider etc.