How To Buy Facebook Stock (META)

With nearly two billion daily active users on its platform and nearly $120 billion in annual sales, Facebook is a global phenomenon and a revenue-generating juggernaut. The company has recently rebranded as Meta Platforms, Inc. If you’re interested in adding some Meta stock to your portfolio, here’s how to get started.

How to Buy Facebook Stock (META)

1. Open a Brokerage Account

If you’re looking to buy Facebook or any other stock, you need a brokerage account to handle the transactions. Available services, fees and investment options differ from one broker to the next, so it’s smart to shop around to find one that fits your preferences. Check out our listing of the best online brokers to get started.

2. Choose an Account to Match Your Goals

After you settle on the right brokerage platform, decide what kind of account you need. Your choice of account should match your investing goals.

  • Retirement accounts. Individual retirement accounts (IRAs) give you tax advantages when you save for retirement. IRAs come with one big limitation: If you withdraw money before you are at least 59 ½, you’ll owe a 10% penalty, plus any applicable taxes.
  • Taxable accounts. While taxable brokerage accounts don’t offer any special tax benefits, you can withdraw funds at any time, for any reason. This gives you flexibility when it comes to building general purpose wealth.

3. Decide How Much to Invest in Facebook

When buying individual stocks, there are a few factors you should take into consideration. To determine how much money to invest in Facebook, make sure you ask yourself the following questions:

  • What’s your budget? Before buying a stake in Facebook, consider your other budget items. After you’ve paid the bills, make sure you’re saving enough for retirement and that you have a solid emergency fund.
  • What’s FB’s current price? Like all stocks, shares of Facebook fluctuate in price constantly. You can certainly buy a single share of FB, but consider that you could also purchase a part of a share, known as a fractional share. Brokerages like Charles Schwab, Fidelity, Stash and Robinhood allow investors to purchase fractional shares.
  • What’s your investing strategy? You may choose to make a single purchase of Facebook all at once or you can use dollar cost averaging by purchasing the same dollar amount of the stock at regular intervals, no matter what the stock costs at the time. Dollar-cost-averaging can help reduce your risk of volatility and save you money on the cost-per-share over time.
  • What about your other investments? How does FB fit into your overall investment strategy? Do you own a lot of other large-cap technology stocks, or will Facebook be your first investment in this sector? Making sure you have a diversified portfolio that represents several different industries and company sizes can help ensure a healthy portfolio.
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4. Determine Your Order Type and Place Your Order

You can request that your brokerage purchase shares of Facebook stock at the current price or use a more advanced order type, like limit orders or stop orders. These types of orders only purchase shares once the stock price falls below a certain threshold.

Facebook is traded on the Nasdaq stock exchange, and its shares can be bought or sold between 9:30 a.m. and 4:00 p.m. ET, Monday through Friday. If your brokerage platform offers the option, the Nasdaq allows pre-market and after-market trading.

Nasdaq’s pre-market trading hours are 4:00 a.m. until 9:30 a.m., and its after-hours trading runs from 4:00 p.m. until 8:00 p.m. ET. ​​If you place an order outside of the hours your brokerage allows you to trade during, it will be processed once trading resumes.

5. Evaluate Meta’s Performance

Once you own Meta stock, you should periodically review your investment and its performance.

To evaluate the performance of any stock, start by reviewing the annualized percent return. This will give you a number you can compare to other assets as you gauge how well your investment in META has performed.

Compare Facebook’s performance to benchmark indexes such as the Nasdaq 100 or the S&P 500. This shows you how Facebook has been doing in comparison to the stock market in aggregate.

Since Facebook is publicly traded, it is required to file both Form 10-K annual reports and Form 10-Q quarterly reports to disclose its performance and finances.

Facebook provides this information on its investor relations site, and it can also be found on the SEC database. If looking through these reports feels like you’re trying to read a foreign language, try reading expert analysis of these reports from sites like Morningstar. The information disclosed by Facebook plus the expert analyses you read can help you determine if this is the right stock for your investing needs.

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How to Sell Meta Shares

“Buy-and-hold” could be your best investing strategy, but eventually you may want to sell your shares of Facebook. Selling stock works much the same way as buying shares.

Open your online brokerage platform, then enter the Facebook ticker symbol, the number of shares or dollar value of what you want to sell and choose a sell order type. They work more or less the same way as the purchase order types we covered above.

If you’ve made a profit on your investment in Facebook, you may owe capital gains taxes. The amount you owe depends on your annual income and how long you’ve held your Facebook stock. Partnering with a tax professional or certified public accountant (CPA) can help you determine how capital gains taxes may affect the sale of your META stock or other investments.

Invest in Facebook with an ETF or an Index Fund

Buying shares of Meta Platforms is just one way of adding the company to your portfolio. You can also invest in Facebook by purchasing shares of index funds or exchange-traded funds (ETFs). Both are available through your online brokerage.

These kinds of funds pool large numbers of stocks together in a single fund, making them less risky than individual stocks. Rather than counting on Facebook alone, with funds you can diversify your holdings across hundreds (or even thousands) of different companies, increasing the chances of overall growth without betting on a single company.

It’s also important to note that Facebook is a major component of many index funds. For instance, it’s on the top 10 list of companies by index weight in the S&P 500, which means that buying an S&P 500 index fund will give you a good amount of exposure to META while still diversifying and protecting your investments.

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