Last Updated on January 5, 2023
According to statistics, about a quarter of the world’s population accesses Facebook daily, with more than 1.62 billion users on the network on average daily.
It has annual sales of almost $120 billion, making it one of the most popular places for Nigerians to purchase shares.
Today, we’ll go over how to purchase Facebook shares straight from Nigeria, the optimum time to do so, and other essential facts about Facebook shares. Before that, let’s clarify what Facebook shares represent.
See: How to Buy Shares in Nigeria
ON THIS PAGE
In order to make its shares accessible to the general public for purchase, Facebook listed them on the stock market in 2012. And since then, despite enduring difficult circumstances, the company’s shares have increased with tremendous revenue.
Prior to dropping 25% on February 3, 2022, when Meta released quarterly data and a sales guidance that fell short of the mean of analyst expectations, it achieved all-time highs in the summer of 2021.
One of the world’s biggest and best-known internet businesses is officially known as Facebook shares. The company just changed its name from Facebook to “Meta” on December 1st, 2021, in an effort to introduce the metaverse, a new virtual reality universe, as well as because it will start trading under the stock symbol MVRS.
Undoubtedly, many business people would want to get or purchase as many lucrative shares as are offered, but as a Nigerian, is it now possible to buy Facebook shares in 2022?
Yeah! As long as you have a reliable broker, you may now purchase shares in Facebook from Nigeria. Unless you’re an expert in your field, you’ll need a brokerage account to conduct the transactions.
The greatest time to purchase Facebook stock is right now since it is now experiencing a drop and has a strong propensity to increase.
Due to TikTok’s fierce rivalry, Facebook’s daily active users fell by 1 million. Apple’s iOS operating system privacy improvements also caused sluggish growth and a $10 billion loss for Facebook.
ALSO SEE: The Benefits of Buying MTN Shares in Nigeria
It’s as simple as ABC to get Facebook shares from Nigeria. You may purchase shares using this instructional guide even if you have no prior experience.
You may also search for Facebook Shares in your online brokerage account, input the number of shares you wish to acquire, and then click Buy to begin the share-buying process.
But then, what are the steps you need to take to acquire Facebook shares?
Here is a step-by-step guide for buying Facebook shares in Nigeria this year:
1. First, Open a brokerage account
Open a brokerage account either with a bank, broker, or custodian. A brokerage account holds financial assets, such as securities, on your behalf.
Similar to your Nigerian bank account, a brokerage account lets you buy and sell stocks, bonds, mutual funds, exchange-traded funds (ETFs), and other types of assets. It also lets you move money in and out.
You put money into a brokerage account and then use it to buy investment products like stocks, bonds, mutual funds, and other assets.
Opening a brokerage account is mostly done to get assistance with managing your financial activities.
You’ll need it if your goal is to buy Facebook shares from Nigeria. Keep in mind, though, that services, costs, and investment alternatives vary from broker to broker throughout the globe, so it’s better to choose the one that best fits your budget.
You can open a brokerage account with any top online brokers in Nigeria like Trove, Bamboo & Chaka.
Checkout: Trove vs Bamboo: Which is the Better Stock Investment Platform?
2. Pick an Account that Matches your Investing Objectives
Choosing an appropriate objective depending on the kind of investment you want to make comes before setting up the proper brokerage account. The difference between a retirement account and a tax-deductible account is explained here.
1. Taxable Account:
You may withdraw your money whenever you want with this account, but you won’t be able to take advantage of any specific tax advantages since they don’t provide them. This account also allows you the chance to accumulate general wealth.
2. Retirement Account:
The account is mostly used by those who want to save for retirement, as its name suggests. Although there are restrictions on what you may do with this account, individual retirement accounts provide tax benefits when you save for retirement.
If you remove money from your IRA account before turning 59 and a half, you’ll be subject to a 10% penalty fee in addition to any relevant tax costs.
If your brokerage platform gives you the option to buy, you can buy Facebook shares from Nigeria on the Nasdaq stock exchange between 2:30 and 9:00 p.m. Nigerian time, Monday through Friday. However, the Nasdaq also permits pre-market and after-market trading.
You may ask your broker to buy Facebook shares at the going rate or use a more complex order type, such as a limit or stop order. These kinds of orders only buy shares when the stock price falls below a certain level.
SEE: Best Stock Trading Appsin Nigeria
Reviewing The Annualized Percent Return
It is advised to maintain a careful eye on your shares after purchasing Facebook shares from Nigeria by assessing Facebook’s performance by looking at the yearly per cent returns.
By doing so, you’ll receive the precise amount and also compare it to other assets as you measure how well your investment in Facebook has fared.
The article has been updated in this version. You can also buy Facebook shares from Nigeria for as little as $1 using Chipper Cash, Trove, Bamboo, Chaka, Passfolio, or Rise Vest app as of the time this article was being written.
It’s as simple as ABC to purchase shares from the best cash financing platform. A detailed explanation of how to accomplish it is provided below.
- Select Stocks under the Invest menu then click on Start Investing.
- Choose a share of your choosing, then hit Buy.
- Enter an amount, then choose Next.
- Reconfirm the transaction information and hit Buy Now.
- You ought to get a confirmation of a successful transaction.
Without a broker, I don’t believe it is feasible to buy a share. Direct investment in Facebook shares is possible through a brokerage account or one of the many investment applications out there.
These tools allow you to purchase, trade, and hold Facebook stocks without leaving the comfort of your home or mobile device.
Because they lack access to the NASDAQ, not every online broker will let you purchase shares of Facebook. Therefore, you’ll need a broker who unquestionably gives you access to this exchange.
20 People are Reading: Best Apps to Buy Stock in Nigeria
Selling Facebook shares works just like buying from Nigeria. It is only a backwards process.
You only need to register an online brokerage account, input the ticker symbol for Facebook, or do a stock search for Facebook shares. Select a sell order type after entering the number of shares or the selling price.
You could have to pay capital gains taxes if your Facebook investment resulted in a profit. Your yearly income and the number of years you’ve held Facebook shares decide how much you owe.
In a period of months, the perception of Meta Platforms (NASDAQ: FB stock )’s changed from one of a growth company to one of a reliable value investment. The company has historically spared tech-like volatility due to its excellent free cash flows, but the most recent earnings release sent the price tumbling, wiping out almost three years of gains.
The company is now selling at 16 times the trailing earnings multiple, which is normal for non-growing corporations. I believe that growth will pick up again, and the stock price will respond quite strongly. I consider shares to be a solid purchase in the current market as one of my suggestions with more certainty.
Facebook has declined more than 40% to trade at around $230 per share after reaching a record price of $384 per share in late 2021.
Although there is still unfavourable emotion against the company, it is crucial to keep the fundamental analysis apart from the stock price activity. Facebook (FB) is still one of the most alluring ad networks in the world, with average revenue per user steadily rising even as ARPU reaches $50 per quarter.
At these costs, the core argument could even be more simple. At the moment, Facebook is selling at around 16 times its trailing profits. The business will have $48 billion in net cash on its balance sheet end of 2021, having turned 97 per cent of its net income into free cash flow. The company’s stock repurchases in 2021 totalled $44.8 billion, above the $38 billion in free cash flow.
ALSO READ: How to Buy Foreign Shares in Nigeria
Given that Facebook and a large portion of the rest of the internet sector have generally shied away from aggressive share repurchases in favour of cash hoarding, Wall Street doesn’t seem to have taken note of this change in capital allocation practices. Given the much-reduced stock price, I think FB should continue to follow the same capital allocation strategy going forward.
While investors wait for growth to resume, the corporation could potentially buy back around 7% of its outstanding shares annually using solely free cash flow, delivering an alluring shareholder yield.
Some investors could see the possibility of a return on investment (ROI) from metaverse investments as a “positive” of buying the stock, but in my opinion, it is still too soon to predict if the metaverse would be profitable for the firm.
The drawbacks of investing in Facebook are therefore brought into focus. Data privacy and competitive issues with the corporation have previously been covered. In addition, Facebook is making significant investments in the metaverse.
The division “reality labs,” which includes investments in the metaverse, caused the corporation to incur operating losses of $3.3 billion in the fourth quarter, as shown in the table below.
The firm is now trading at 16 times its earnings, as I previously said. If we eliminate losses from the metaverse, the corporation would have generated $10 billion more in operating income, and the stock would only be selling at 13x earnings, giving you a sense of how much the company is spending in the metaverse.
Investors will have essentially funded what will be seen as a pricey side project for CEO Zuckerberg if the investments in the metaverse do not succeed. It would have been wiser to invest the $10 billion (and rising) on investments in their core industries or to simply buy back more shares.
A fantastic area to put money into and see it grow is Facebook. You may invest in Facebook by buying shares of index funds or exchange-traded funds (ETFs), which are accessible on your online brokerage account. Its P/E ratio is lower than that of the S&P 500 and the technology sector.
This explains how to buy Facebook shares from Nigeria; if you have any questions or need help, please use the comments area below, and we’ll respond as soon as we can.
You can purchase Facebook shares from Nigeria, yes. Reviewing the yearly or quarterly percentage returns is advised to determine if the investment is a good one. You can do this by examining the data on the company’s investor relations website.
Because it is publicly listed, Facebook is required to publish Form 10-K annual reports and Form 10-Q quarterly reports to detail its performance and finances.
Additionally, you may study some professional analysis for clarity if you still don’t grasp its metrics. You can decide whether these shares are the right ones for you to purchase in Nigeria using the information supplied by Facebook and the expert analysis you read.
The optimum time to acquire Facebook shares in Nigeria for rapid profits may depend on the kind of brokerage account you use. On Monday through Friday, between 2:30 and 9:00 p.m. Nigerian time, you may purchase shares on the Nasdaq stock market.
Leave a Reply