Buying shares in just one company can leave you more exposed to unexpected swings in the market than if you have a range of investments - a "diversified portfolio". Experts generally recommend having a broad mix of assets and funds that hold a ready-made portfolio of at least 50 different companies' shares, on the basis that drops in the value of some will be offset by rises elsewhere.
Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Facebook's is 1.3761. This would suggest that Facebook's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).
Facebook's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 15x. In other words, Facebook shares trade at around 15x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
If you're wondering how to invest money and buy Meta stock, there are two primary options to own shares directly. You can choose to buy shares through a traditional brokerage account or purchase fractional shares through many of the new stock trading platforms offering fractional share investing.
Fractional share investing allows investors to buy portions of a share based on the amount they have to invest rather than buying whole shares. This option could be good for beginner investors who do not have large amounts of money to invest in Meta stock.
If you wanted to buy Meta stock at $159.94 (closing price on Aug. 1, 2022) but only have $25 to invest, you wouldn't be able to do so if your brokerage required you to buy a whole share. However, fractional share investors could purchase approximately 0.156 shares of Meta stock.
One of the popular online brokerages that allows fractional share investing is Stash 1. A Stash Growth account costs just $3/month and allows you to purchase fractional shares in stocks and ETFs 4 with as little as 1 cent with no commission or trading fees. 2 There are thousands of stocks and ETFs available on Stash. You can invest in Tesla (TSLA) or many others, including Meta (META), Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Snap, Inc. (SNAP). You can also invest in several non-tech firms, including Starbucks (SBUX), Costco (COST), Papa John's (PZZA), General Motors (GM), and more.
One of the top perks of Stash is that if you use your Stock-Back® Card at participating retailers, Stash gives you pieces of stock in that company. It's a way to earn fractional shares in the company by supporting it with your purchases.
If you had invested $10,000 in the FB IPO, you would have bought 263 shares at $38 each. Now, those Meta shares would be worth about $50,119. On a smaller scale, if you invested $1,000, you would have bought 26 shares at $38 each. Today, your stock would be worth around $5,012.
Weighing the pros and cons and looking at the potential for the metaverse, it seems as if long-term investors who don't have any shares of Meta stock may want to pick some up while they're so much cheaper than they were last year.
Facebook shares will rise and fall in value according to how well the company is performing at a given moment in time. Better-than-expected earnings will make Facebook share prices rise, while weaker earnings will make share prices fall. However, there are many reasons why a company's share price can change.
People trade Facebook shares because, just like other financial instruments, they can be an opportunity to invest money. At a basic level, you can take a position on Facebook shares to get exposure to economic growth. If an economy is in good shape, you might find that companies operating in that specific economic branch or industry will grow too.
People have two options to buy shares of stock online. Firstly, they can buy shares in companies on the exchanges where they are listed. For instance, you can buy Facebook stock on the NASDAQ exchange, so you own a share in the company (investor). Alternatively, they can buy Facebook shares without owning them, speculating on the price of the underlying asset (trader).
Investors buy Facebook shares hoping their price will rise and they can sell them later for a profit, adhering to the basic principle of buying low and selling high. Investors will take positions over a longer period, attempting to profit from share price changes as well as dividend payments.
Because in CFD trading you can use leverage, you do not need to put up the full value of Facebook shares. Instead, you only need to cover the margin, which is calculated by multiplying your exposure with the margin factor for the market you are trading.
Suppose Facebook shares are currently trading with a selling price of $310.20, and you think the price will go down. So, you decide to open a short CFD position on 200 Facebook shares CFD. A week later, the buy price reaches $295.40, and you close your position. This means you made $2,960 in profit ([310.20 - 295.40] x 200 = $2,960), excluding additional costs.
Before you load up the trunk with Facebook shares, pop opens the hood and see what you are really getting into. Remember, when you buy Facebook stock, you are purchasing a small portion of an actual business:
If the $300 level will hold and the price will show a higher low the uptrend should resume. Otherwise, the next key support level is around $250 and could be a 2022 low for Facebook shares before trending up in the medium to long term towards the $400 price target.
It is recommended to watch for stocks in the major long-term support area. We should buy Facebook shares at relatively cheap prices (compared to historical values), not expensive prices. Also, have an exit plan for how you will exit a profitable trade. Define how and why you will exit. Since we used to support to get into the trade, you may consider exiting just below a long-term resistance level.
If buying at support, and planning to exit just below resistance, the upside potential should outweigh the downside risk by at least 2:1 or even 3:1. That means that if you buy Facebook shares at $320, you should be reasonably able to get out of the stock at $295 or higher. In an absolute worst case you lose $25 a share, but based on the historical chart it is quite feasible to go up to $50/share or more. This is known as the risk/reward ratio, a key indicator when deciding to buy Facebook shares or not.
The current consensus among 66 polled investment analysts is to buy Facebook shares. The buy percentage consensus is at 83. So analysts seem to be very confident about FB.
Before deciding to trade in shares, you should take steps to manage your risk. We have courses at CAPEX Academy that take you through risk management and how to mitigate your exposure to risk in the financial markets.
To view Facebook shares (FB) real-time price and chart on the trading platform can click on the "Search" icon located in the left panel or by clicking on "Shares" and then select the instrument, in this case, Facebook .
The number of Facebook shares to be purchased must be entered and it is allowed to set up a Stop Loss to limit the potential loss, and/or a Take Profit to close a profitable position once the Facebook stock reaches a specific price. These orders can be configured based on price, pips, cash value, or percentage.
On January 1, 2012, Facebook filed for an initial public offering (IPO). According to the preliminary prospectus, the business was looking to fund $5 billion and had 845 million monthly active users and a website with 2.7 billion daily likes and comments. Zuckerberg would maintain a 22 percent ownership stake in Facebook after the IPO, as well as 57 percent of the voting shares.
The shares were valued at $38 each by underwriters, valuing the company at $104 billion, the highest price for a freshly public corporation to date. Due to high demand, Facebook stated on May 16, one day before the IPO, that it will offer 25% more shares than expected. The IPO was the third-largest in US history, raising $16 billion (behind only General Motors and Visa).
You can trade Facebook shares using derivative products such as contracts for difference (CFDs) or spread bets. This is different to share dealing in that you do not own the physical shares, you simply speculate on the price movements of the underlying asset by going long or short.
Fractional shares are illiquid outside of Public and not transferable. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see our Fractional Share Disclosure to learn more.
Are you looking to buy Meta shares? Or are you anticipating a decline in the share price and would like to profit from this opportunity using CFDs? In this guide, we will explore how you can profit from price movements in the share price of Meta in either direction and provide you with a better understanding of the Meta stock.
Facebook accepted its first outside investment in 2014, when venture capitalist Peter Thiel invested half a million Dollars in the company. In return, he gained 10% ownership and joined the company's board. Thiel sold 16.8 million Facebook shares when the company went public in 2012 and earned roughly $640 million from this. Thiel still held on to some shares after the IPO, but his FB holdings have greatly reduced in the past few years. 781b155fdc