How to Buy Facebook Stock Now, Price Forecast and Dividend Guide
Should I buy Facebook stock? Many seem to think so already. Indeed, Facebook, Inc., which owns the eponymous social network as well as Instragram and Whatsapp, is one of the most popular stocks among investors and retail traders. This is especially true because the company dominates the social media sector, with over 3.5 billion users worldwide. But that’s not all, as it is constantly innovating and is expected to develop new high-potential businesses in the future.
In this analysis, we will present the fundamental advantages of Facebook stock and explain why it is a wise investment. We’ll also look at other factors, such as technical forecasts and analyst recommendations. Finally, we’ll also introduce you to an ideal broker to buy Facebook stock.
Facebook Overview
Facebook (NASDAQ:FB) is the company that owns the social network of the same name, Instagram, and the messaging application Whatsapp. It is the undisputed global leader in social media. All applications combined, Facebook has 3.51 billion users, or 44% of the world’s population, and about three-quarters of the world’s population with access to the Internet.
The most significant part of the revenues comes from advertising, as Facebook and its applications have become a must for all advertisers worldwide. No other media allows to target users as efficiently or to reach as many people. In addition, Facebook’s advertising revenues are not as dependent on large advertisers as other media, as Facebook is often the only advertising option for millions of small businesses.
Some believe that Facebook has such market dominance that it means its future growth is limited. However, as we will explain in this analysis, this is far from being the case. Indeed, besides developing other businesses, Facebook still has plenty of room to generate more revenue from its existing businesses.
Facebook Stock Historical Price
Facebook stock is listed in the United States on the Nasdaq, under the code FB, and was introduced in May 2012. It has a market capitalization of more than $1 trillion.
Over the past 52 weeks, it has risen nearly 20%, and has moved between a low of $244, and a high of $377. Facebook stocks hit an all-time high of $377 on July 28. It is a component of the most popular U.S. stock indexes, including the S&P 500, the Dow Jones and the Nasdaq.
The long-term monthly chart of Facebook stock price shows that it has been mostly bullish since its IPO, despite a period of hesitation in 2018, 2019 and early 2020. During this period, the stock was repeatedly sent back down by a resistance around $220.
In 2020, the coronavirus pandemic then benefited Facebook stock. Indeed, online and other sales activities exploded with the lockdowns, which clearly benefited Facebook. Thus, between April 2020, when Facebook stock was worth $150, and the all-time high of July 2021, Facebook stock posted a gain of over 150%. Currently, the Facebook share price is still near its all-time highs, and there is no signal of a weakening on the long-term charts.
Why Invest in Facebook, Inc Stock?
In addition to an already attractive profile as it is now, Facebook’s development prospects suggest that its business could still grow exponentially. Here are some clues in this direction and in regards to Facebook stock forecast we can expect.
An Attractive Valuation for Facebook Stocks
Facebook stock today currently has a P/E of 27, which is low considering the speed of its revenue growth. In comparison, Twitter, Facebook’s closest competitor, has a P/E of 136. This is why the Facebook stock is by far the cheapest social media stock. That means the Facebook, Inc. stock price have plenty of room to go up.
Facebook Ads are a Must for Advertisers
With 44% of the world’s population and more than 70% of the world’s connected population on Facebook, it’s clear that advertiser have no choice but to use if they want results.
Companies have already boycotted Facebook for various reasons in the past, but it never lasted very long. There is no other medium that can precisely target consumers or reach such a massive number of people in a single campaign.
In addition to being a must-have for most of the world’s businesses, Facebook is also often the sole means of communication for millions of small businesses, which gives Facebook stock an advantage in terms of revenue diversification. Indeed, Facebook’s revenues are not dependent on any particular company.
The Company May Soon Pay a Facebook Stock Dividend
The financial results for the second quarter of 2021 have shown such financial health that many analysts believe it won’t be long before Facebook stock starts paying a dividend.
Facebook’s accounting shows a cash reserve of $64 billion. However, there is little chance that Facebook will use this cash to make acquisitions. Indeed, regulators around the world have been already criticizing its dominant position for years.
The company may use some of this cash to buy back shares. However, this would not be the wisest decision, given that Facebook’s share price is currently near record highs. This leaves the option of dividends. However, the announcement of a dividend payment by Facebook would have a decisive bullish impact on the share price.
Facebook, a Potential Future World Leader in Virtual and Augmented Reality
Facebook stock is a wise investment not only because of its current strong position. It also has a bullish fundamental outlook for the future.
In particular, Facebook is positioning itself as a leader in the field of virtual and augmented reality with its Oculus device. During the presentation of the second quarter results, CEO Mark Zuckerberg emphasized this future activity, describing Facebook as a future leader in the “Metaverse”.
Indeed, he estimated that virtual reality will become a revolution as important as the mobile Internet was in its time.
Huge Growth Potential in Online Commerce
Still on the subject of diversification, Facebook is also working to develop its revenues from online commerce. Facebook recently introduced online commerce features, such as Marketplace, to offer its users a shopping experience that doesn’t leave the Facebook network. This positions Facebook ideally to take market share from players such as Shopify and even Amazon.
Facebook Stock Forecast: Will the Stock Go Up?
After outlining several fundamental factors that call for buying Facebook stock, we’ll look below at more technical elements, such as analysts’ forecasts and targets, as well as Facebook stock chart analysis.
Financial Forecast for Facebook Shares
The analyst consensus forecast for Facebook’s third quarter 2021 revenue is $29.37 billion. This would represent 1% growth over Q2 2021, but 48% growth over the same quarter last year.
On the earnings front, analysts are forecasting EPS of $3.16, lower than Q2, but 66% above Q3 2020 EPS. Finally, we should remember that the Facebook stock price history has far exceeded analysts’ expectations of revenue and earnings for the last 5 consecutive quarters.
Facebook Stock Analyst Forecasts
Professional analysts overwhelmingly recommend buying Facebook stock. Of the 51 analysts who follow the stock, a majority of 44 recommends a Buy. 5 have a Neutral recommendation, and only 2 recommend selling.
These analysts’ average 12-month price target is $408, which implies a potential upside of more than 12% from the current price. It should also be noted that the target range is very wide. Indeed, the most pessimistic analyst targets $147, while the most optimistic aim for $500.
Facebook Stock Technical Forecast
The Facebook shares daily chart shows a healthy uptrend. Moreover, the increasing gap between the 100 and 200 day moving averages shows that the trend is still developing.
This is confirmed by the RSI indicator, which is close to its neutral zone on the daily chart, while the Facebook stock remains close to all-time highs.
All of this suggests that despite the recent sharp rise, Facebook stock value still has room to grow. In this context, in addition to the all-time highs just below $380, the next key target for the share price will be the psychological threshold of $400.
On the downside, there is initial support around $350, but the underlying uptrend will only be challenged if it breaks below the 100-day moving average, currently at $335.
Where to Buy Facebook Stock
It is sometimes difficult to choose an online broker as there are so many. That’s why we’ve reviewed many of them to determine which is the best one to buy Facebook stock. And the name that came up most often was the broker ZFX.
This is a relatively new broker, as it was only created in 2018. However, its seriousness is not to be questioned, as ZFX is regulated by the FCA.
ZFX provides its clients with the MT4 trading platform, which is the most widely used globally thanks to its many advantages in terms of technical analysis and automated trading. Finally, it is worth noting that ZFX offers its clients to trade stocks, indices, forex and commodities.
How to Buy Facebook Stock Easily
Buying Facebook stock from ZFX broker is a quick and easy process. In fact, you will be able to open an online account in just a few minutes by following these steps:
- 1 – Register with ZFX
- 2 – Verify your ZFX account
- 3 – Make your first deposit
- 4 – Buy Facebook stock
Let’s go through each of these steps in detail.
1 – Register with ZFX
You will need to go to the ZFX website homepage and click on the “open an account” button for this first step. A registration form will appear. You will need to enter several personal details, as shown in the image below.
It will also be necessary to verify your phone number via SMS. You will then have to choose your account type, and accept the general and privacy policies.
After completing and validating the form, you will be able to download the MT4 platform immediately. This is the platform that you will use to invest in FB shares. ZFX will send you your MT4 login and password that will allow you to access the platform.
2 – Make your First Deposit
To deposit money into your ZFX account, you will need to click the “make a deposit” button on the screen displayed immediately after registration. You will then need to choose a payment method. Let’s take Mastercard as an example:
You will be asked to enter the amount to be deposited. Then, click the “Confirm Deposit” button on this screen. You will then need to enter your credit card information before the final validation of the payment.
3 – Account Verification
The final step before you can purchase the Facebook share is to verify your account. To do this, you will need to submit supporting documents online, as shown below:
4 – Buy Facebook Stock
Once ZFX validates your documents, you will then be ready to buy Facebook stock. To proceed, install the MT4 platform and sign in by using your MT4 login details. Once you access the platform, you can find the Facebook stock under its symbol ‘FB’, and then invest under the conditions that suit you.
Bottom Line: Should You Buy Facebook Stock?
Facebook stock has a solid business model, based on its dominance of Internet advertising, which guarantees solid revenues even when the economy declines, as during the covid-19 pandemic.
But the company is also thinking about its long-term future, and is developing other businesses, as we have seen in this guide. While the growth of its advertising business is expected to slow down as it matures, other sources of revenue could quickly take over and propel Facebook shares to new records.
In fact, both analyst forecasts and technical studies point to a bright future for Facebook stock. If you too would like to take advantage of this opportunity, we recommend that you check out ZFX, which is without a doubt one of the best brokers to buy Facebook stock according to our research.