So, you are looking for an investment opportunity, and somehow you are considering buying Facebook shares because you think or heard that the social media giant “Facebook” could be a great place to invest as it tends to have great potential for long-term growth.
Facebook as a company is rapidly growing. It has a large user base and a remarkable market share in the social media industry. Furthermore, Facebook has continued to experience an increase in finances over the past few years, and some investors believe Facebook is not going anywhere any time soon.
That sounds nice, right? Great! This is my way of saying that buying Facebook shares could be a good decision for both old and new investors. So, what is stopping you from investing already?
Let me guess. You are not sure it is the right thing to do, or you don’t even have a good understanding of what Facebook shares are and how they work, or you’ve been told that the process is kind of cumbersome and difficult or you just don’t know where or how to begin! No more worries! I am here to help!
In this post, I will show you what Facebook shares are, why you should consider investing in them, and what you should consider before investing in them. I will also show you how to buy Facebook shares from Nigeria.
Let’s dive in.
Table of Contents
What are Facebook Shares?
Let’s get down to the nitty-gritty. As you already know, Facebook (now META) is one of the largest and most successful social media companies in the world. It is one of the biggest and most well-known tech companies worldwide. On the other hand, shares or stocks represent a unit of ownership in a company.
Therefore, Facebook shares are units of ownership in Facebook, Inc., a publicly traded company. When you buy a share of Facebook stock, you essentially buy a small portion of the company. As a shareholder, you have the right to vote on certain company decisions, such as the election of the board of directors, and you may be entitled to a portion of the company’s profits in the form of dividends if the company so decides.
Furthermore, Facebook shares are traded on various stock exchanges, such as the NASDAQ, the second largest stock exchange company worldwide, under the ticker symbol “FB“.
Many investors buy Facebook shares to diversify their investment portfolio and generate long-term financial growth or income.
Why You Should Consider Buying Facebook shares
Facebook and its performance in the stock market have not been bad, even though the stock price of Facebook can fluctuate based on certain factors, like their financial performance, industry trends, and global economic conditions.
Good track record
Facebook is one of the largest social media companies in the world, with over 2.9 billion monthly active users. It has a strong financial track record and has consistently increased revenues and profits over the past few years.
Good advertising revenue
Facebook’s advertising revenue makes up a significant portion of its overall revenue, and it has continued expanding its advertising capabilities and reach. As more businesses shift their advertising budgets from traditional media to digital platforms, Facebook’s advertising revenue may continue to grow and greatly benefit investors.
Facebook has made giant strides in acquisitions of great assets like Instagram and WhatsApp, which have helped to grow its user base and revenue streams further.
Furthermore, with recent initiatives such as the Facebook Marketplace, Facebook Watch, and Oculus VR, Facebook is constantly innovating. You wouldn’t be wrong to assume that Facebook will continually be on a growth path.
Extension and diversification
If you are an old investor, adding Facebook shares to your investment portfolio is one way to extend and diversify your investment status, especially if you are not yet invested in tech companies.
Dividends and buybacks
It can be your source of generating passive income in the long run if Facebook chooses to pay dividends to its shareholders. The best part is that Facebook has a track record of using its cash to buy back its shares, which can increase the value of the remaining shares.
Facebook is led by skilled, innovative, and experienced leaders alongside its CEO Mark Zuckerberg. Many investors believe that Zuckerberg’s leadership and vision for the company can help it continually grow and create more products and services for a long time.
Social media domination
Facebook is one of the world’s largest and most pre-eminent social media platforms. With 2.9 billion monthly active users currently, the company has a large and loyal user base, which can translate to continued growth and increase in revenue and profits over a long time.
Facebook no doubt has a large user base in the United States and Europe and strives to expand into new markets, especially Asia and Africa. As the company extends its reach and creates new products and services for these markets, the possibility of driving future revenue growth is imminent.
But don’t be too fast. There are potential risks associated with investing in Facebook, such as issues over handling user privacy and regulation, and competition from other social media companies.
As you’d do with any other kind of investment, it’s important to carefully consider the potential risks and benefits before deciding whether you will buy Facebook shares. The bottom line is, investing in Facebook shares is a decision that should be based on factors like financial goals, risk tolerance, investment portfolio, and investment strategy. You won’t be wrong to work with a financial adviser.
What Should You Consider Before Buying Facebook Shares?
Don’t be too fast to invest money into Facebook shares. Doing some analysis before venturing into it will do you a lot of good. You wouldn’t want to invest your money into a business you don’t understand.
With that in mind, here are a few factors to consider before investing in Facebook shares;
Financial record and information about Facebook
Check out the revenue, cash flow, and net earning lines in Facebook’s financial accounts. Look at Facebook’s balance sheet for the company’s convertible assets, financial competence, and profitability ratios.
Your investment goals
Check if it fits into your investment plan and aligns with your goals. For instance, Meta is a tech company. Are you interested in investing in a tech company? Examine your goals, interest, investment portfolio, and priority to see if buying Facebook shares aligns with all of them.
Economic and market conditions
Consider the broader economic and market conditions, such as interest rates and the stock market’s overall performance, as these factors can impact the stock price of Facebook and other companies.
Market value of stock
Understanding the market valuation of the stock you want to invest in will help you determine if you are buying it at a good price or not. You can determine if a stock is overvalued or undervalued by evaluating the stock’s price with valuation metrics like the price-to-profit ratio and the price-to-sales ratio.
Facebook’s activities are susceptible to privacy and data security regulations which may affect the company’s financial performance. Take the time to analyze any current or potential regulatory problems.
Consult a financial adviser
Consider working with a financial adviser. Yes! You may need one to guarantee you make informed decisions and minimize risks and losses.
Subscribe to our YouTube channel to learn more about business investments in Nigeria and profitable approaches.
How to Buy Facebook Shares
If you have finally decided to invest in Facebook shares, here are the steps you can take to begin the process;
Open a brokerage account
First, you will need to open a brokerage account. Don’t know what a brokerage account is? I got you!
A brokerage account is simply an account for investment. You trade stocks, bonds, mutual funds, and ETFs with a brokerage account. You can set up an account with many brokerage firms, from high-priced full-service stockbrokers to low-cost online discount brokers such as E*TRADE, TD Ameritrade, Robinhood, and more. Choose a broker that suits your needs, and then create an account.
Fund your account
Once you’ve created your brokerage account, you must fund it. You can transfer money from your bank account or use a debit or credit card to deposit money into your brokerage account.
Search for Facebook stock
Once your account is funded, you can search for Facebook stock. You can search for the stock using the company’s ticker symbol, “FB“. Most brokerages have a search function on their website or mobile app.
Place your order
After finding Facebook stock, you can order to buy it. You can place two types of orders: a market order and a limit order. A market order will buy the stock at the current market price, while a limit order will only buy the stock if it falls to a certain fee that you specify.
Choose the type of order you want to place, and then enter the number of shares you want to buy.
Monitor your investment
Once you’ve bought Facebook shares, observing your investment is important. Keep an eye on the stock price. You can also set up alerts to notify you of any major changes. Also, you must stay updated on any news or innovations by Facebook, which could affect the stock prices.
Buying Facebook shares is not rocket science. It is a straightforward process. Once your brokerage account is set up, and you have some funds to get things rolling, invest in the all-powerful social media company. You will be on your way to earning great dividends from your investment.
Remember to do thorough research and monitor your investment to ensure you make the right decision about your investment at every point.
Investing is a key to unlocking wealth. Come join our Whatsapp Community to get tips and also discuss investment, entrepreneurship and business. You will definitely get a share in our soap.
- Ruth Faithful is an educationist and a highly skilled freelance writer with a knack for crafting top-notch engaging and compelling on-brand copies and content that connects with readers and delivers results for businesses and brands. She is a passionate advocate for personal development and self-actualization. She is dedicated to helping individuals and businesses thrive.
- Business InsightsJuly 6, 20239 Best Social Media Platforms to Promote Your Brand
- EntrepreneurJune 25, 2023Digital Marketing Vs Traditional Marketing in Nigeria: Which is More Effective?
- Business InsightsJune 13, 2023How to Create Successful Campaigns with the Facebook Ad Library
- Business InsightsMay 27, 2023How to Build Generational Wealth Through a Successful Family Business