How to Buy Meta Stock
Meta is one of the top investments even for beginner investors. Here's a step-by-step guide and post-purchase tips to maximize your investment.
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Meta is a social media giant with billions of users worldwide. It's everywhere! And the exciting news? A growing number of investors are buying Meta shares because of its increasing earnings and potential growth.
So if you're eager to ride the wave of Meta's success, here's a quick, user-friendly roadmap just for you. Discover how to jumpstart your Meta investment journey, and pinpoint the ideal brokerage tailored to your unique needs.
Dive in and seize your opportunity for financial growth!
Is Meta on the stock market?
Meta Platforms Incorporated, previously known as Facebook, is listed under NASDAQ with the ticker symbol 'META'. The company was founded in 2004 in California and went public in 2012.[1]
Meta is a large publicly traded company in the United States that created a widely used social media platform. The most popular ones are Facebook, Instagram, Messenger, WhatsApp, and Facebook Reality Labs.
Here's how you can buy Meta shares.
How to Invest in Meta
Invest in Meta by buying Meta stock using any brokerage or trading app. There are no special qualifications needed. Read on to know the steps.
Create Your Account
Before you can start investing in Meta, you will need to create an account with a brokerage firm or trading app. You can visit the brokerage's website or app and follow the instructions there to set up your account.
Typically, you'll need to provide:
- Your name
- Social Security number
- Address, phone number, and email
- Date of birth
You may also need to provide a copy of your driver's license or passport to verify your identity.
- Taxable: A general-purpose investment account
- Joint: An account shared between two individuals
- Retirement (includes Traditional and Roth IRA)
- 529 College Savings
- Custodial: An account set up for a minor
Don't have a ton of money to invest? Look for a brokerage that supports fractional shares. This means you can purchase just a tiny piece if you don't have enough money for a full share. This lets you invest in Meta even if you only have $10. The table below shows some top brokerages that you may want to consider.
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| Visit Site | Visit Site | Visit Site | |
Robinhood | M1 Finance | Webull | |
|---|---|---|---|
Get a Free Stock (worth between $5 and $200) - | M1 Investment Account - Up to $500 Bonus - | 20 Free Fractional Shares - | |
Benefits and Features | |||
| Stock Trading | |||
| Minimum Deposit | |||
| Fractional Shares | |||
| Good For | DIY investing with passive portfolio management | Experienced investors; Active traders | |
| Visit Site | Visit Site | Visit Site | |
Robinhood: Pricing information from published websites as of 04/18/2020. M1 Finance: Pricing information from published website as of 12/26/2023. | |||
Keep reading for our top recommended brokers to buy Meta stock.
Fund Your Account
Once your account is created, you will need to fund it to start trading. Just link it to your bank account so you can transfer money. Depending on the brokerage, you may need to deposit a minimum amount to start trading.
Be sure to read through the terms and conditions of the platform carefully before making any investments.
Now, you can start investing in Meta stock.
Search for Meta (META)
Once you've funded your account and are ready to buy, search for Meta stock using their ticker symbol META.
The company should appear, along with Meta's other relevant data, such as current stock price and daily average volume.
Click on the company listing for more detailed information, including news updates and analyst ratings. It's smart to research the company and consider any risks before investing.
Decide How Much You Want to Buy
The next step is deciding how much Meta stock you want to buy. Most platforms will let you enter how many shares or the exact dollar amount you want to buy.
For example, if the investing app allows for fractional shares, you can say you want to buy $50 worth of Meta (instead of full shares).
After entering the details, you are now ready to place your order.
Place your order
Once you have entered all the information, review it one last time and click "place order" to complete your purchase of Meta stock. Your order will be processed in a few minutes, and you will receive a confirmation when it has gone through.
- Market order: Execute the transaction now at the current market price.
- Limit order: Set a specific price at which you wish to buy. This gives investors more control. But if the stock never hits your price, the trade will never be executed.
After that, you can view your holdings in your account portfolio and track their performance over time.
Best Brokerages to Invest in Meta
Here are some of our top recommended brokerages to buy Meta shares. All these brokerages have no trading commissions.
Robinhood
Robinhood is one of the most popular investment apps for beginners. It has no minimum deposit requirement. A big benefit is that it supports fractional shares, allowing you to invest in stocks with as little as just $1.
M1 Finance
M1 Finance is a unique hybrid self-directed brokerage and automated investing. You choose your own stocks and build your own portfolio. Then M1 will automate your strategy at no cost. It also supports fractional shares. The minimum to start is $100.
Stash Invest
Stash Invest is designed for new investors who need a little handholding. It guides you to pick stocks aligned with your goals and risk tolerance, but you can also choose your own stocks. You can also purchase fractional shares. There is just a monthly fee starting at $3/mo.
Webull
Webull also has no trading fees or minimum investment requirement. It offers better research tools and analytics for more experienced investors. It's also a good choice for active traders with free extended trading hours. Webull offers fractional shares for as little as $5.
Fidelity
Fidelity is a great choice if you're looking for a full-service brokerage with a wide variety of account types and other investment products. There is no account minimum. Fidelity also offers fractional shares from as little as $1.
Pros and Cons of Buying Meta Stock
Here are some of the good points and drawbacks of investing in Meta:
Pros:
- Low stock price
- Consistent increase in financial performance
- Multiple platforms as sources of revenue
Cons:
- Heavy reliance on ad revenue
- Increasing competition like TikTok and Snap
- Regulatory risks such as FTC Antitrust Lawsuit
Why Invest in Meta?
Meta is one of the biggest and top social media platforms. It has lessened its competitors by buying them, like Instagram and WhatsApp. This resulted in a wider reach and a stronger user base. Facebook alone has 2.06 billion daily active users worldwide.[2]
Meta's growing popularity has these positive effects on the company and its investors:
- Increased revenue streams
It gives the company more opportunities to gain more revenue. It also reduces the risk of relying on a single platform. For example, Instagram has become a significant source of revenue through advertising and sponsored content. - Competitive advantage
Meta has gained a competitive advantage over its rivals. It has maintained its position as the largest social media and messaging player. This makes it challenging for startups to beat Meta's market share. And it provides a sense of stability to investors and the company's long-term plans.
The company is also putting a lot of effort into creating a metaverse. This includes virtual reality (VR) and augmented reality (AR). The goal is to change how people experience digital content and interact with each other. This initiative has the potential to create new opportunities for growth.
- Earnings: $2.98 per share, 21% increase year-over-year
- Revenue: $32 billion, 11% increase year-over-year
- Daily Active Users (DAUs): 2.06 billion
- Monthly Active Users (MAUs): 3.03 billion
- Average Revenue per User (ARPU): $10.63
What is Meta's valuation?
As of October 2023, Meta is worth $433.22 billion,[3] and its price-to-earnings ratio is 39.25.[4]
This means that Meta is considered relatively expensive compared to its earnings. It's important to think about this when deciding if Meta is a good investment.
The price-to-earnings ratio tells us how much investors are willing to pay for each dollar Meta earns. In Meta's case, the ratio is high, which means investors are willing to pay a lot for the company.
A high ratio can show that investors expect Meta to grow and make more money in the future. However, it would be best if you also looked at Meta's current earnings and how likely it is to keep growing.
Factors like how much money Meta makes, its profitability, competition in the market, and its ability to keep growing are some things to consider.
- Market Capitalization (Market Value)
Market capitalization (Market value) is how we measure the size of a public company. We do this by multiplying the current stock price by the number of shares outstanding. - Price-to-Earnings Ratio (PE Ratio)
The P/E ratio shows if a company is undervalued or losing money. Low but positive means high earnings, while high negative means heavy losses.
- Companies with a P/E ratio above 30 are often labeled as "growth stocks." This suggests that investors predict future growth or profitability.
- A negative P/E ratio means the company is losing money. Some investors may still predict growth, but that ratio simply means present unprofitability.
- Positive P/E ratios below 10 are generally regarded as "value stocks." These stocks's current price is lower than its intrinsic value, so it's like buying stocks at a discount.
Pre-Purchase and Post-Purchase Tips
Deciding if Meta stock is right for you depends on your investment goals, risk tolerance, and understanding of the company's prospects. Even after buying shares, monitoring your investment to maximize your returns is important. These factors are important to look at in your pre and post-purchase.
- Clarify your investment objectives
Are you looking for long-term growth, passive income, or capital preservation? Understanding your goals will help determine if Meta aligns with your investment strategy. Also, Meta does not pay dividends on its shares. - Consider your risk tolerance
Assess how comfortable you are with potential fluctuations in stock prices. Meta stock carries risks like any investment. This includes market volatility, regulatory challenges, and competitive threats. See whether you are willing and able to bear these risks. - Diversify your investment portfolio
Diversifying your portfolio would be best. It is better to have investments across different sectors and asset classes. See if adding Meta stock would improve your diversification. Or it may need more focus on a single company or industry.
Are you having second thoughts on Meta stock? Or do you simply want to diversify your portfolio? Try also investing in Snapchat or Pinterest. Here's a quick review of these companies.
Alternatives to Meta Stock
Social media and messaging industry is a competitive area of investment. If Meta doesn't suit you, there are other well-performing and popular apps that you can explore for investment opportunities.
- Snapchat (NYSE: SNAP)
Snapchat, known for its disappearing photo and video messages, had its initial public offering (IPO) on March 2, 2017, with the ticker symbol SNAP.The company had a strong start, but it faced stiff competition from Instagram, which adopted similar features. Snapchat has shown promising revenue growth, primarily driven by advertising and augmented reality (AR) initiatives. However, it has struggled with user growth and profitability.
- Pinterest (NYSE: PINS)
Pinterest is a visual discovery and bookmarking platform that went public on April 18, 2019, under the ticker symbol PINS.[5]The company has experienced consistent revenue growth, primarily derived from advertising and partnerships with e-commerce platforms.
Pinterest has positioned itself as a platform for inspiration, DIY projects, and product discovery, attracting a niche and engaged user base. However, competition in the social media and visual search space is intense.
Bottom Line
To buy Meta stock, start by researching and understanding the company, setting clear investment goals, and considering your risk tolerance.
Once ready, open a brokerage account with a trusted platform offering stock trading services. Fund your account, search for Meta's stock symbol (previously FB, now trading as META), and place an order to buy the desired number of shares. Remember to monitor your investment and seek guidance from experts.
Investing in stocks has risks. So, it's important to stay informed, take your time, and make decisions that align with your financial goals. Happy investing!
References
- ^ Meta. Facebook Announces Pricing of Initial Public Offering
, 10/11/23 - ^ Meta. Meta Reports Second Quarter 2023 Results, Retrieved 10/4/2023
- ^ Macroaxis. Meta Current Valuation, Retrieved 10/6/2023
- ^ Google Finance. Meta Platforms Inc, Retrieved 10/6/2023
- ^ Pinterest. Press release, Retrieved: 10/12/23
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