Personal Finance

How To Buy Facebook Stock

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 6 minute read

2.8 billion people use Facebook on a monthly basis, making it one of the most popular social networking platforms. To capitalize on the ensuing ad income, marketers and investors alike are turning to this platform because of its widespread use. A look at the history of the corporation, as well as several possibilities for investing in Facebook, are provided below.

How to buy facebook stock? Facebook was founded by Mark Zuckerberg and a few other Harvard classmates in 2004. The Social Network, starring Jesse Eisenberg and Justin Timberlake, was based on the true tale of how Facebook came to be known as The Facebook.

Facebook’s origins date back to its days as a social media hub for Harvard undergraduates. Since then, new campuses have opened their doors, and students from other institutions have been permitted to join. Students in high school might enroll a year later. Anyone above the age of 13 was able to join Facebook beginning in 2006.

Eventually, as the firm evolved, it decided to transfer its headquarters from Boston to Palo Alto, CA. For $240 million in 2007, Facebook sold a 1.6% share in the company to Microsoft and began working together on advertising. When Facebook replaced MySpace as the most popular social networking site in America by 2009, To allow investors to purchase shares of the company, Facebook filed for an IPO in February 2012. Since moving to Menlo Park, California, and acquiring Instagram, WhatsApp, and Oculus VR, the corporation has been able to grow its user base.

What you need to know?

In the NASDAQ market, Facebook, Inc. trades under the ticker “FB.” Its initial stock price was $38 when it went public on May 18, 2012. Investors, on the other hand, were less confident in the company’s prospects after the IPO. On September 4, 2012, the stock price hit a low of $17.73 per share.

Since then, Facebook’s stock price has significantly outpaced the market. Investments in Facebook’s first public offering would yield an average of more than 23% every year. On June 28, 2021, the stock market closed with a value of over $355 per share for Facebook, valuing the firm at $969 billion. There are about one trillion dollars in the company’s shares if they were all valued at once.

As a quick solution to the question “how much is Facebook stock worth?” today, the value of stocks swings throughout the day. A variety of factors contribute to these swings, including the release of fresh information about a firm, its earnings and other financial information, analyst forecasts vs actual performance, and various acquisitions. As a result, these and other variables may cause the value of Facebook’s stock to rise or fall.

Steps in buying Facebook stock

There are two basic ways to hold shares directly in Facebook if you’re thinking about investing money. Fractional shares are available on many of the new stock trading platforms, but you may also acquire them through a standard brokerage account.

1. Open a traditional brokerage account

Investing in firms like Facebook has traditionally been done through a brokerage account. Using a traditional brokerage account, you may purchase and sell publicly traded assets such as stocks, bonds, mutual funds, ETFs, and U.S. Treasury bonds. From Charles Schwab, Fidelity, and Vanguard, you can find some of the top brokerage accounts on the market.

With traditional brokerages, beginners and seasoned investors alike may easily buy in companies like Facebook. However, because most of these firms do not permit the purchase of fractional shares, account holders must normally acquire complete shares of stock. It may be tough for the typical investor to buy even a tiny amount of Facebook stock at a price in the hundreds.

Individual stock investments become too expensive because of the commissions levied by many brokerage firms. To save money, search for well-known organizations like Charles Schwab, Vanguard, and Fidelity that provide no-commission trading on specific assets, including Facebook and other U.S. equities, while looking for a brokerage to use.

2. Buy fractional shares

Investment in fractional shares, rather than whole shares, enables investors to buy smaller amounts of a stock based on their financial resources. Beginner investors who don’t have a lot of money to invest in Facebook shares might benefit from this alternative.

Buying a single share of Facebook stock at $355.64 (the closing price on June 28, 2021) would need a minimum investment of $100 from your brokerage. Fractional share investors, on the other hand, could buy as many as 0.070 shares of Facebook at any given time.

When it comes to fractional share investment, Stash4 is a popular choice. With a Stash Beginner account, you may buy stocks and ETFs1 in fractional shares for as little as one penny each month, with no commissions. 2 Stocks and ETFs may be purchased at Stash.com. It’s possible to invest in Tesla (TSLA), as well as many other companies, such as Facebook, Amazon, Alphabet, Apple, Netflix and Snap, Inc. (SNAP). Additionally, you can invest in non-tech companies such as Costco (COST) and Papa John’s (PZZA) as well.
Apart from fractional shares, Stash also provides a no-fee checking account3 and a Stock-Back Rewards® debit card.

5 There is no minimum balance requirement or overdraft fee associated with the Stash bank account. A two-day early pay period is possible for customers who use direct deposit to get their paychecks.

When you use your Stock-Back® Card at participating shops, Stash rewards you with shares of the firm you purchased from. By making purchases on behalf of the firm, you can earn a small percentage of the company’s stock. It is possible to invest in fractional shares on other popular applications, such as Robinhood, M1 Finance and SoFi Invest.

Is it in your best interest to invest in Facebook stock?

Facebook has more than 2.8 billion monthly active members, making it the world’s most popular social network. In our free Facebook group, we have thousands of members who debate travel rewards, investing, and other personal finance topics on a daily basis.
You may want to invest in Facebook because of its prominence in social media and internet advertising.

Pros and Cons

Pros

  • Over the past nine years, Facebook stock has returned 23 percent.
  • Success in social media and internet marketing has allowed it to diversify its revenue sources and increase the likelihood of future revenue development.

Cons

  • There is a good chance that Facebook’s stock will not continue to beat the market indefinitely.
  • Users are increasingly turning to up-and-coming alternatives like TikTok.
  • Advertising income might be impacted if privacy restrictions are implemented.

It all relies on your own financial objectives and investing plan whether or not you should buy Facebook stock. People who appreciate individual stocks and wish to own a firm that is the leading player in its industry might want to consider investing in Facebook. All investments have a degree of risk, so be aware of this. Investors risk losing their money if the value of Facebook’s shares declines or the firm goes out of business altogether.

Be sure to evaluate your long-term financial objectives before making an investment in Facebook or any other stock, and work with a financial advisor to create a custom financial strategy.

Bottom line

With over a decade under its belt, Facebook has shown to be a successful investment. After a slow start, the stock has risen steadily since its IPO in May 2012, averaging an annual return of more than 23% since then. Many financial experts predict Facebook’s growth to continue, given the company’s dominance in social media and internet advertising.

You should properly investigate your alternatives, assess your goals and risk tolerance, and consider talking with a professional financial advisor before making any decisions. You may check out our top investment apps if you’re ready to go further.

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