Buying Facebook (META) Stock: How can you invest in Facebook?

in hive-111825 •  3 years ago 


How do I buy Facebook (META) Stock?

Everyone knows what Facebook is. This large social network is still growing and making a lot of money thanks to its extensive advertising program. But how can you actually invest in Facebook? Is it wise to buy or sell Facebook shares? You can read all about it in this special and extensive article!

Buying Facebook (META) Shares: How can you invest in Facebook?



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How can you invest in Facebook (META)?

There are two ways you can invest in Facebook. You can choose to buy or sell the shares yourself. In addition, with modern brokers, you can take advantage of the smallest price fluctuations in the short term. Below you will immediately see the best ways to invest in Facebook.

Where do I buy Facebook Stock?

You can also choose to buy Facebook shares. This makes sense if you believe that Facebook's revenue will continue to rise in the future. More and more people are active on social media. This can increase income from advertising in the future. At eToro, you can buy Facebook shares without paying commissions. Use the button below to open a free demo account with this broker.

buy Facebook (META) Stock

What do you want to know about investing in Facebook?

How do you do active trading on Facebook?

You can choose to do active trading in the direction of Facebook stock prices. A major advantage of active trading is that you can also make a profit when the stock price goes down. A good provider for actively trading CFDs on Facebook is Plus500. Where you can try trading options without risk with a free demo account. Use the button below to open a free account:

How can you buy Facebook Stock?

Do you want to buy Facebook shares, but you don't know how to do it? Do not worry! In this step-by-step plan, we look at exactly what you need to do before you can trade on Facebook.

Step 1: Open an account with a broker

You buy shares from a broker. It is therefore important to choose a broker where you can buy cheaply in US stocks. This way you can save a lot of money when buying Facebook shares. Do you want to know who is the trusted party to invest in this stake? Click below and get an overview of brokers and find out where you can do it best

Then it is important that you deposit money into your account. Think how much you want to buy Facebook shares and deposit the amount into your account.

Step 2: Stock Analysis

It is not wise to just buy Facebook shares at random. The price of this stock is very volatile and has undergone several developments. Therefore, it is important to first determine the right time to buy the stock. You can use two types of analysis for that.

With fundamental analysis, you will see how the company is doing in terms of numbers. Based on the numbers, you check if the company also has a good profit in the future. You can also choose to apply technical analysis. Then it checks price patterns to determine "whether it's a good time to buy Facebook stock."

When you decide that it's really smart to buy Facebook stock, you still have to make a good entry point. For this you can take a look at the track of prices. When the price is at a high point and you see it often dropping at that point, you have to wait a while. You can also choose to buy the stock in installments. For example, you buy several shares of Facebook each month.

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buy Facebook (META) Stock

Step 3: Make the deal
Within your broker's account, you can then place an order to buy the stock. You can use a market order or a limit order. With a market order, you can buy the stock directly at the current price. With a limit order, you buy the stock only when the price drops to a certain price.
Always define the strategy in advance. Think about the price you want to buy at and the price you want to sell at again. Sometimes it may be wise to set a stop loss. Then you automatically incur your loss when the stock price drops too much.
How does Facebook make money?
Before investing in Facebook, it is important to understand how the company makes a profit. At first glance, Facebook does not appear to be a profitable company. After all, it is a company that provides all kinds of services for free. However, it is important to remember that if you are not paying for a product, you are most likely the product yourself.
So Facebook makes tons of money through ads. The social network is very popular among businesses. This is because it is possible to target users very precisely. This allows you as a company to decide exactly which users can see your ads.
Facebook took advantage of the new revenue. For example, in 2012 Facebook bought Instagram where it also became possible to advertise it. In 2019, Instagram already generated an additional $20 billion in sales.
Two years later, Facebook also bought WhatsApp for $19 billion. They are already making money through WhatsApp Business and Facebook and are also planning to offer more in-app ads. With over 2 billion users, this can only bring in more money.

Biggest Danger: Privacy
It's clear that Facebook is a company with a lot of potentials. However, there is also a huge risk to Facebook's future success and that is privacy. Facebook has become a big headline for various scandals. The scandal surrounding Cambridge Analytica has gotten the most attention here. This agency obtained data from tens of millions of Facebook users via Facebook. This data was used to help Donald Trump in his election campaign.
Many US regulators were not satisfied with Facebook. The US Federal Trade Commission, or FTC, imposed a massive $5 billion fine. This is of course bad for Facebook's profitability and caused the share price to drop significantly.
To avoid this kind of huge fines in the future, Facebook will have to hire more people to protect users' privacy and security. For example, they have a great team that must prevent the spread of fake news.
When all this works well, there is less chance of a new big fine. At the same time, these actions will reduce the profitability of the company. In addition, companies advertise primarily via Facebook, since they have access to a lot of data. When Facebook is very limited in data collection, the network can become less attractive to users.
What is your opinion? Will the increasing demand for privacy pose a threat to Facebook, or will Facebook spread more?
What is the state of Facebook's stock?
Facebook is a somewhat sensitive stock. When the economy is not doing well, you see that companies often spend less on advertising. When companies spend less on advertising, Facebook can make less money.
For example, during the coronavirus crisis, Facebook indicated that they earn significantly less. However, the company has more than $50 billion in assets on its balance sheet. Because of this, crises can easily pass through difficult times.
In general, the company is still developing well. The number of users is increasing and Facebook turnover numbers are increasing. Do you think that Facebook will grow more in the future? So it might be interesting to buy stocks.

Is it wise to buy Facebook shares now?

Facebook's long-term perspective doesn't look too bad. The company has a large amount of cash (more than 50 billion dollars) and a growing number of users. The profitability of the company is increasing and by using Instagram and WhatsApp they can earn more in the future.

It is clear that the strength of Facebook lies in its large number of users. In January 2012, the network already had 900 million users worldwide, and even people who don't use Facebook know the brand. In the meantime, that number of users has grown to 2.5 billion! This huge scale is perfect for direct marketing.

However, there are also enough doubts. Privacy scandals can cause a lot of damage to a brand. In addition, there is always a risk that another social network will become more popular. So pick the right time to get in when you start investing in Facebook and keep a close eye on developments.

What is the current Facebook stock price?

Curious about the current Facebook share price? Below you can see at what price you can buy CFDs on Facebook Stocks directly:

Is Facebook just a temporary fashion?

We must keep in mind that Facebook can only be a temporary fad. Who is still on Hyves today, the social network that was so popular a few years ago? Although Facebook has been given a longer life due to its international appearance, the question remains whether Facebook will stay ahead of its competitors in the future.

It's possible that Facebook is going after other internet companies and, like MySpace, becoming a small player in the market. It looks like Facebook is trying to prevent this by buying up all kinds of related companies. An example of a large company bought by Facebook is the famous WhatsApp which is used by almost everyone. Instagram also belongs to the blue giant nowadays.

Facebook growth

Facebook is in good shape at the moment. The number of active users is increasing and so is the number of hours users spend on the website. As long as this trend continues and the company doesn't do crazy things, the stock is likely to continue to develop well.


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Note: The number of active users is still increasing

Selling Facebook?

Facebook's price cycle has always been very volatile. Already after the launch, a significant decrease was followed by a significant increase. The fact is that many novice investors buy Facebook shares because they use the software and can get to know the company.

A website with a large part of the world's population is obviously very interesting. The only question is whether Facebook knows the potential of this database full of personal data to be able to use it without hurdles from all kinds of privacy watchers and tough governments.

However, this should not matter to the intelligent investor. With state-of-the-art brokers, you can trade both short-term price dips and increases! We also call this short selling. A short position achieves a positive result when the price decreases.

Stock price evolution

Since the stock was launched, the price has jumped from $38 to over $200. This may be in part because it is a very well-known company. People who know little about stocks are more likely to buy Facebook shares because they are recognizable.

However, this does not change the fact that profits have risen sharply; In 2018. Facebook generated a net profit of over $5 billion and revenue of $15 billion. As long as Facebook retains its users, the value of the stock will likely continue to grow.

What is the best way to trade Facebook shares?

The most profitable way to trade Facebook shares is to buy and sell them in the short term. This also allows you to take smaller price movements. The social network seems to be very responsive to news reports, so it's a good idea to follow the news closely. By buying Facebook shares at the right time, you can make high returns.

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I have found a lot of similarity between its content and the one originally published on Trading.info.

https://trading.info/facebook/

I remind you that when using information from other authors you must cite them, otherwise it will be considered plagiarism.

This is your first warning.