How to Buy Facebook Stock – A Beginner’s Guide

Facebook, the social media giant has been a high-profile company that has always sought public attention. It is one of the tech superstars that has enjoyed high rise since its initial public offering in May 2012. Now we will discuss on ‘Is facebook a good stock to buy right now’ and ‘How to Buy Facebook Stock’.

Despite the company has faced some troubles regarding user data breach on a massive scale and other related things, the long-term outlook for the company seems positive and may offer good gain to its stock investors.

Buying Facebook Stock, A Beginner’s Guide

Beginners may find it difficult and frightening to venturing into the stock market. Remember that every seasoned investor also was once a beginner. And to earn good profit, you should perform due diligence to make sure that the company stock you are going to buy has potential for good performance.

You need to take some well-thought risk. If you are considering investing in Facebook Stock, focus on its currents trends and future price movements. You go through company’s financials; visit the company website and to study investor relations page.

Being an investor, you should analyse its revenue growth including profit margins, monthly active users, usage trends, risks to operations and outlook. After doing due diligence, if you feel it is in comfortable stage, you can decide to buy the stock. Now you have to determine to check if it is the right time for entry point. You go through the valuation metrics to check whether the stock is undervalued or overvalued.

The most common evaluation measure is Price-Earnings Ratio parameter. There are other parameters too. A high PE ratio is an indicator of increased demand. You can also look at the historical stock chart to see if it is a good time for entry point.

Once you decide that the stock is a good value at the current price, you can contact a stock broker, you can contact online or by phone to open the brokerage account. Then you have to decide the number of shares you want to buy based on the amount you want to invest/price per share. You can find current price of the share online.

Investing in Facebook or any other stock, you need to do some research work and analysis. You have to consider both the potential rewards and risks before plunge into buying it.

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