With nearly two billion daily active users on the platform and nearly $120 billion in annual revenue, Facebook is a global phenomenon and revenue giant.
In October 2021, Facebook changed its name to Meta Platforms, Inc. Since June 9, 2022, Facebook has been listed on the American stock exchange Nasdaq under the new abbreviation META (formerly FB). In Germany, sharing is now called Meta instead of Facebook (ISIN: US30303M1027).
While this change won’t have a significant impact on investors, existing Facebook stock owners and potential buyers should at least be aware of the brand change.
If you’re looking to buy Facebook stock, here’s the best way to do it.
Buy Facebook / Meta (FB) shares
1. Open a brokerage account
To buy Facebook or any other stock, you need a securities account to process your transactions. Fees and investment options differ from provider to provider, so it’s good to compare. If you don’t want to do it yourself, you can also check out our review of the best online brokers 2022.
2. Which investment strategy do you choose?
Either you invest a larger amount in Facebook shares or you buy fractional shares at regular intervals for a fixed amount, in a so-called savings plan. In the end, you end up buying one more expensive, the other cheaper. This translates to an average price and you don’t have to worry about the right time to start.
You should also ask yourself how does FB fit into your overall investment strategy? Do you own many other large-cap tech stocks, or is Facebook your first investment in this sector? Make sure you have a diverse portfolio that includes different industries and company sizes. A diversified portfolio will fluctuate less in value.
3. Determine your order type and place your order
You can ask your custodian to buy Facebook shares at the current price. Or you can set a so-called limit order. When making a purchase, you can specify the maximum price at which you would ever be willing to invest.
Facebook is listed in the United States on the Nasdaq stock exchange, which is open Monday through Friday from 9:30 a.m. to 4:00 p.m. Eastern Time. In Germany, for example, Facebook is listed on the Xetra e-commerce exchange in Frankfurt under the security number ISIN US30303M1027. This is open from 9 a.m. to 5:30 p.m. CET.
4. Check Facebook performance
After buying Facebook shares, you should periodically review your investment and performance. To do this, first look at the percentage return per year. So you can compare different stocks directly with each other.
You can also compare Facebook’s performance with benchmarks such as the Nasdaq 100 or S&P 500. This way, you can see Facebook’s performance against the broader stock market.
As a public company, Facebook is required to file both annual Form 10-K and quarterly Form 10-Q reports to account for its performance and finances.
Facebook makes this information available on its Investor Relations page. If some things are not clear to you after reading these reports, . You can read expert reviews on sites like Morningstar.
You can use information published by Facebook and expert analysis to determine if this is the right stock for your investment objective.
How to Sell Facebook/Meta Shares
“Buy and hold” may be the best investment strategy for you, but you may want to sell your Facebook stock at some point. Selling stocks is almost identical to buying stocks.
Go to your online brokerage platform, enter the Facebook ISIN, the number of shares or the value in euros of the share to sell and decide on a sell order. Everything works more or less the same as with the types of buy orders we have described above.
If your sale of Facebook stock generates a profit, you may have to pay withholding tax. You pay nothing if you earn less than 801 euros (1,602 euros for married couples) in investments per year. If you do not want to recover the tax via the tax return, it is better to submit a so-called exemption order to the broker.
Investing on Facebook with an ETF
Buying Facebook stock is just one way to add the company to your portfolio. You can also invest in Facebook by buying shares of exchange-traded funds (ETFs). ETFs are also available from your broker.
ETFs bundle a variety of stocks into a single fund, making them less risky than individual stocks. Rather than just betting on Facebook, funds can diversify your holdings across hundreds (or even thousands) of different companies, increasing your chances of overall growth without having to bet on just one company. It’s also important to know that Facebook is an integral part of many index funds. For example, it is ranked 10th in the MSCI World Stock Index. At the end of May, Meta shares held 0.85% of the weight of the index, which includes the 1,500 largest companies in industrialized countries.