How to buy Meta stock (META)—5 steps to invest
Meta Platforms is the second largest online advertising company thanks to its social networks Facebook, Instagram and WhatsApp. While advertisements make up most of the company’s revenue, Meta Platforms has invested in the metaverse and artificial intelligence to diversify its revenue streams. The firm regularly buys back shares and even started issuing dividends in 2024.
This guide will explore how to buy Meta Platforms stock and other details to consider before making an investment.
How to buy Meta stock
Buying Meta Platforms stock is a simple process. You can use this five-step process to buy shares in any publicly traded corporation.
- 1.
Create a brokerage account: Investors can choose from several brokerage accounts. Each brokerage firm will request personal details such as your name, email address and Social Security Number when you create an account. However, you should compare features and costs across each brokerage account to determine which one is right for you.
- 2.
Open an order ticket: Most stock investments start with order tickets. Brokerage firms usually make it easy to open an order ticket and fill out the details for your investment.
- 3.
Specify META stock: You will first have to select which stock you want to buy. Some brokerage firms let you type the company’s name to find its publicly listed shares (i.e. type “Meta Platforms” in the order ticket). However, every brokerage firm will recognize the company’s ticker symbol, which is META.
- 4.
Decide how many shares you want to buy: After typing META, the next step is to specify the number of shares you want to buy. Some brokerage firms let you buy fractional shares, which is especially helpful for stocks that cost hundreds of dollars per share. The order ticket will calculate how much the investment will cost when you input the number of shares.
- 5.
Place the order: The last step is to put in the order. Market orders go through right away at the current price, while limit orders only go through when the stock reaches the designated price. Limit orders can lower your cost basis if they go through, but they run the risk of not getting filled if the stock continues to rally.
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About Meta Platforms, Inc.
Meta Platforms was founded in 2004 in Cambridge, Massachusetts. The company operated under the name Facebook until October 2021, when it was renamed Meta Platforms. The company has more than three billion daily active users1 across its social networks.
Meta Platforms used acquisitions to preserve its lead in the social media industry, most notably its acquisition of Instagram for $1 billion2 in 2012 and its purchase of WhatsApp for $19 billion3 in 2014. The company also unsuccessfully attempted to acquire Snapchat in 2013 and 20164.
Is Meta a good stock to buy?
Meta Platforms is a good stock that you may want to consider. It has outperformed the S&P 500 over the past five years, generating an annualized 25.7% return5 during that time frame. Facebook’s parent company has also delivered an annualized 23.4% return over the past decade.
Almost all of the company’s revenue comes from online ads. Meta Platforms is working to diversify its revenue, but it can take several years before the company achieves meaningful diversification. Profit margins have been rising for several quarters and are getting closer to 40%. Meta Platforms has also regularly posted quarters that have featured double-digit,z year-over-year revenue growth.
What does Class A mean?
Not every share is equal. Some corporations like Meta Platforms use a class system to determine which shares have the most voting rights and offer priority for dividend payments. Meta Platforms Class A shares trade on public markets. Each Class A share grants one vote, while Meta Platforms Class B shares have more voting power. Class B shares are reserved for founders and executives. This arrangement gives Mark Zuckerberg more than 60% of Meta Platforms’ voting power6, allowing him to make any decisions within the company.
Pros and cons of buying Meta stocks
Pros
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The company is a leader in the online advertising industry
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More than three billion people visit its social networks every day
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Meta Platforms is raising its stock buybacks and dividend payouts
Cons
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Meta Platforms is not a well-diversified company, relying almost exclusively on ad revenue
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The company faces stiff competition from other tech giants such as Alphabet and Amazon
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Government scrutiny can limit the company’s ability to grow with additional acquisitions
FAQs
Marc Guberti is a certified personal finance counselor and a freelance writer who resides in Scarsdale, New York. His work has been featured in US News & World Report, Newsweek, InvestorPlace, and other publications.
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