How to buy Meta (Facebook) shares

How to buy Meta shares? Is it worth investing in the stock? These are just some of the questions that many investors ask themselves, attracted by the social media giant that has led the rise of the Nasdaq in the last year.

Founded in 2004 by Mark Zuckerberg as a project for Harvard students, Facebook quickly conquered the market, going from a university idea to a global giant with over 2 billion active users today. The recent introduction of Threads has reignited interest in the company, which has also earned the nickname “Twitter killer”.

In short, to buy Meta shares you need to use a brokerage account or contact your bank. However, it can get a little more complicated than that, so let’s look at the details.

Before analyzing the different options available, let’s see a summary of the general information on the Meta stock:

Where to buy Meta shares

To invest in Meta Platforms Inc. shares (symbol: META), it is essential to know the different options available. The stock is listed on Nasdaq, the US stock exchange specialized in the technology sector, with trading sessions taking place from 9:30 am to 4:00 pm (New York time), and is also part of the S&P 500 index . Investors can purchase Meta shares through most brokerage accounts. Several brokers stand out for their reliability and services, including eToro, XTB, and Fidelity.

An alternative is to rely on your trusted bank, opening a securities account and starting to purchase Meta shares through the bank consultancy service or the online trading platform provided by the bank.

However, buying Meta shares may not be within everyone’s reach. The high cost of buying a single stock (nearly $323) may prevent some investors from allocating capital efficiently and diversifying their portfolios. To overcome this obstacle, you can consider alternatives such as waiting for the stock split, investing in mutual funds, ETFs or CFDs. Furthermore, it is important to note that purchasing US stocks may involve exchange and transaction fees, which require careful consideration and comparison between different brokers to optimize your investment.

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How to buy Meta shares

The first step to investing in Meta shares is selecting the trading platform that best suits your needs. This process requires careful evaluation of the available options, which include online banking platforms, specialized brokers, and online trading services. Key aspects to consider during this phase include fees, features offerings, analytics tools, and ease of use.

Once you have chosen the ideal platform, the next step is opening a trading account. During the opening process, you must provide your personal data, verify your identity, and deposit the necessary funds to start investing.

Next, it’s time to search and buy Meta stock. Using the search engine integrated into the platform, investors can locate Meta shares by their distinctive symbol (META) and proceed with the order. Before completing the purchase, it is advisable to conduct in-depth research, analyzing the historical performance of the shares, future prospects, and recent news that could influence their market value, such as financial results. To learn more, we recommend reading our guide on how to trade online.

Meta vs S&P 500 - 5Y Graph

Source: fool.com

How to invest in Meta through a fund

Buying shares allows you to own and participate in the profits of a company, but involves risks related to volatility. Financial experts recommend diversifying through assets and funds with different stocks. Meta is included in many active and passive funds (ETFs) as a key component of the Nasdaq index, offering an option for exposure to the US market.

The most popular 10 ETFs with holdings in Meta stocks are:

1. Invesco QQQ Trust
2. SPDR S&P 500 ETF Trust
3. iShares Core S&P 500 ETF
4. Vanguard S&P 500 ETF
5. Vanguard Total Stock Market ETF
6. Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX)
7. Vanguard 500 Index Fund Admiral Shares (VFIAX)
8. Fidelity Contrafund (FCNTX)
9. SPDR S&P 500 ETF Trust
10. T. Rowe Price Blue Chip Growth Fund

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How to invest in Meta via CFDs

To invest in Meta Platforms as an alternative to the direct purchase of shares, a strategy to consider is the use of Contracts for Difference (CFD). CFDs are financial instruments that allow you to speculate on the price of Meta without actually owning the shares. These instruments offer the flexibility to bet on both an increase in the price (going long) and a decrease (going short) of the stock.

The use of leverage in CFDs requires only a margin of the total asset value, allowing investors to gain greater market exposure with a relatively small initial investment. It is important to note that while leverage can amplify profits, it also increases the risk of losses, depending on the size of the position.

Is it worth buying Meta shares?

The decision to invest in Meta stock requires a thorough analysis of the most recent financial results, released on October 26, 2023:

• Revenue for Q1 2023: $28.65 billion, an increase of 3% over the prior year.
• Net Profit: $5.71 billion, down 24% compared to the same period in 2022.
• Earnings per share in the first quarter: $2.20, a decrease of 19% compared to the previous year.
• Loss of metaverse Reality Labs division: $3.99 billion.
• Family of Apps operating profit: $11.2 billion.
• Second quarter projections indicate total revenue between $29.5 billion and $32 billion.

Buying Meta shares seems convenient in light of recent financial successes. Meta doubled its operating profit to $14 billion. A key role was played by significant cost cuts, with a 24% reduction in full-time employees. The positive financial results are also reflected in free cash flow of $14 billion in the third quarter and cash and cash equivalents that rose to $61 billion. Management, projecting a future vision, is targeting artificial intelligence as an investment priority for 2024, highlighting its potential to enhance the value of the platform.

Meta Platforms continues to distinguish itself as a leading technology giant that reinvests profits into businesses rather than paying out dividends. The key question for investors is whether they are willing to give up dividends in exchange for the prospect of continued growth and innovation.

Original article published on Money.it Italy 2023-11-17 08:11:00. Original title: Come comprare azioni Meta (Facebook)