How to Buy Facebook (META) Stock - SmartAsset

Have you ever wondered how to buy Facebook stock? Whether you’re psyched for the Metaverse or just want to invest in the biggest social media platform, buying stock in Meta (Facebook’s parent company) could be for you. Let’s break down how to buy Facebook stock into six simple steps, starting with whether it’s a good idea to buy Facebook stock in the first place. You can also work with a financial advisor to help you manage your overall portfolio, including investing in specific stocks.

1. Determine If You Want to Buy Facebook Stock

Meta, or Facebook, stock may fit into your investment plan, but it’s important to weigh how it aligns with your goals. As with any singular stock, it’s prone to fluctuate, so having a diverse portfolio is necessary to protect against risk. Remember, a low share now doesn’t necessarily mean this is a bad buy. You could be getting in at a low price if there’s future growth.

It pays to do some stock analysis before sinking money into Meta. Look at the performance of the tech sector as a whole, see the returns of Facebook’s competitors and analyze Facebook’s earnings reports. Consider businesses that affect Facebook’s earnings. For instance, Apple has put in place many privacy protections that are having a big impact on Facebook’s ad revenue.

You may feel a little intimidated by the process of analyzing the stock, but remember that knowledge is power. You don’t want to invest your hard-earned money into a company whose business you don’t understand. If you’d rather not do the analysis, it may be a better option to put your money into a mutual fund or index fund.

However, if you do want to dig into the particulars, having a brokerage account can help.

2. Find a Brokerage and Open an Account

A brokerage account is necessary to invest in Facebook stock. Different brokerages specialize in different areas. Some focus on more sophisticated investors, while others bring new investors in with easy-to-use dashboards or a great phone app.

Still, most major brokerages offer many educational materials, as well as ways to visualize and plot stock performance. To get started choosing a brokerage, read our article on the best brokerage accounts.

3. Put Money into the Brokerage Account

To buy Facebook stock, you will need cash in your brokerage account. You can do this by connecting your bank account to your brokerage and transferring your money over. Some brokers allow other means of transfer, like through your debit card or an account with a service like PayPal. Once you have money in your account, it’s time to decide how much Facebook stock you’ll buy.

4. Decide How Much to Invest in Facebook

As of writing this in November 2022, Meta is currently trading at $90.54 per share. At the start of 2022, it was trading above $300/share. You could buy multiple shares or you could start small by buying fractional shares. What you need to decide is how Facebook fits into both your budget and your investment portfolio.

For a diverse portfolio, you generally want only 5 – 10% of it made up of individual business stocks. For instance, if you have a portfolio of $50,000, $2,500 – $5,000 of that should go to individual stocks. From there you’ll need to decide how much of that you want to devote to Facebook. Consider what other investments you have, like if you already have money in tech-sector-oriented funds.

5. Choose Your Order Type and Buy Stock

The final step in how to buy Facebook stock is deciding your order type in your brokerage account. There are two types of ways to buy or sell a stock, also known as orders: market orders and limit orders. Here’s a brief overview of each:

Market orders: This set of transaction orders is used to buy or sell a stock immediately. You outline the stock to trade (in this case, Meta), how many shares and whether you’re buying or selling. The transaction will then be made speedily at market price.
Limit Orders: A limit order sets a limit to how much you will buy or sell a stock for. For instance, you could set a limit order to buy 30 shares of Meta at $85 or less. You can use a limit order to wait to buy the stock until it hits the price you want.

6. Evaluate Facebook’s Performance

Once you’ve bought stock in Meta, you need to regularly assess the company’s performance. Check in and make note of where the stock price has been and where it could be headed. Read earnings statements and determine whether you have trust in the company’s vision.

For instance, if Meta’s moving away from Facebook and into the business of selling VR hardware for the Metaverse, is that something you want to be part of or do you perceive too much risk? Regular evaluation of your stance on the company’s business and financials is crucial to keeping your investment aligned with your goals.

The Bottom Line

Investing in any singular company comes with the risk of volatility. Facebook is no different. To invest, you’ll need to choose a brokerage and set up an account. It’s important to evaluate your stance on Facebook every 3 – 6 months. Determine if the company’s earnings and business decisions align with your goals. Be aware of changes in the tech sector, the health of the market as a whole, as well as the other investments you have that could mitigate the risk of your investment in Facebook.

Investing Tips for Beginners

A financial advisor can help you create a long-term investment plan to grow your assets. Finding the right financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
When analyzing your investments, make sure your assets are properly allocated so you can meet your investment goals. You want to strike a balance between growth and risk. Use SmartAsset’s free asset allocation calculator to determine where your money should be invested depending on your risk profile.