How To Buy Facebook (META) Stocks & Shares In Australia

It was a profitable final quarter of 2023 for tech giant, Meta, with revenue coming in at $40.11 billion for the quarter and $134.90 billion for the year—an increase of 25% and 16% respectively.

In February this year, Meta, the parent company of Facebook and Instagram, announced an overall fourth-quarter profit of $14 billion—up from $4.65 billion.

Revenue from advertising reached $38.7 billion, compared with $31.25 billion for the same time period the year before. Meta laid off more than 20,000 workers last year, and, as expected, overall costs were down 8% on the year prior to $23.73 billion. The company also said it will pay a 50¢-per-share dividend to investors for the first time, and has authorised a $50 billion share buyback program.

Meta shares soared 15% in after-hours trading on the back of the strong figures. In remarks accompanying the profit update, CEO Mark Zuckerberg said  the company would be acquiring $9 billion worth of Nvidia chips to bolster its AI expansion.

“We had a good quarter as our community and business continue to grow,” said Meta founder and CEO, Mark Zuckerberg.

“We’ve made a lot of progress on our vision for advancing AI and the metaverse.”

Featured Partner

1

eToro

Buy Stocks

On eToro’s Website

Invest in global and ASX stocks

Explore over 4,000 stocks. Buy in bulk, or invest in fractional shares

eToro Service ARSN 637 489 466 promoted by eToro AUS Capital Limited ACN 612 791 803 AFSL 491139. Capital at risk. Other fees apply. See PDS and TMD.

Profit was up and revenue better-than-expected, as Facebook parent company, Meta, revealed its quarterly earnings report for September.

Revenue increased 23% to $US34.15 billion for Q3 2023, which was the fastest rate of growth since 2021. Meanwhile,  total profit for the quarter was $US11.58 billion, an increase of 164% on the previous year’s Q3.

Other key figures included:

• Facebook daily active users were 2.09 billion, on average, for September 2023, an increase of 5% year-over-year.
• Headcount was 66,185 as of September 30, 2023, a decrease of 24% year-over-year.
• Ad impressions delivered across Meta’s Family of Apps increased by 31% year-over-year and the average price per ad decreased by 6% year-over-year.

Meta shares rose in extended trading after the figures were released. However, circumspect comments from finance chief, Susan Li, about weakening ad revenue as a result of the Middle East conflict caused the shares to fall by more than 3%.

As of November 2, Meta shares were worth $US311.85.

Meta has posted a profit surge of $US7.8 billion of net income and $32 billion in sales for Q2—the strongest quarter since 2021—which prompted shares to rise by 6% in after-hours trading.

The results beat analyst estimates of $31.1 billion of revenue and $2.91 earnings per share. The company recorded some 2.06 billion daily active Facebook users on average for June, an increase of 5% year-over-year.  Overall, the social media pillar of the business brought in more than $80 billion of operating income.

In its earning release, Meta projected sales during the current quarter to come in between $32 billion and $34.5 billion, according to CEO, Mark Zuckerberg.

Meta’s stock reached its highest figure since January 2022 yesterday morning, increasing by more than 4% to $US295.29.  The surge came ahead of today’s release of Threads, a new social media app by Meta, which chief Mark Zuckerberg created to rival Twitter and its billionaire boss, Elon Musk. 

The app release prompted Meta’s stock to soar, with Meta’s share price increasing by more than 137% for the year to date.

It’s a much healthier performance than last year: in February 2022, Meta notched up a 26% fall in its share price, a record loss for the company. The 2022 drop came after the company reported a decline in Facebook daily users for the first time ever, with social media rivals Twitter and TikTok becoming more popular with the public. 

Threads is a text-based conversation app with features that heavily mimic those found on Twitter. Despite only launching today, Threads has already surpassed five million sign ups–to mixed user reviews. 

Whether the sign-ups—and the stock price—will continue to rise is yet to be seen.

It’s been a tough 12 months for tech companies used to posting record revenues and meeting market expectations, but Meta (META), the parent company of social media sites Instagram and Facebook, has fared better than many.

In its most recent profit update for Q1 of 2023, Meta posted its first bump in sales in a year, sending its stock surging by 12%. In terms of earnings, Meta posted $2.20 per share, which was much higher than the $2.03 per share expected by analysts. Revenue came in at $US28.65 billion, which, again, was higher than the $US27.65 billion predicted.

“We had a good quarter and our community continues to grow,” said Meta CEO Mark Zuckerberg. “Our AI work is driving good results across our apps and business. We’re also becoming more efficient so we can build better products faster and put ourselves in a stronger position to deliver our long term vision.”

Notably, Facebook daily active users were 2.04 billion on average for March 2023, an increase of 4% year-over-year, while the number of monthly active people on Meta’s family of apps grew 5% on the previous year to more than 3.8 billion users. The company is trimming its headcount by approximately 10,000 employees across the Family of Apps (FoA) and Reality Labs (RL) segments of the company.

During the fourth quarter of 2022, Meta recorded revenue of $US32.17 billion—down 4% year over year. Net income decreased to $US4.65 billion—a drop of more than 50%—owing to heightened costs. Although Meta recorded a decline in revenue for the third consecutive quarter, it did better than expected and the stock rallied on the release of its Q4 results, rising 20%. Investors also reacted warmly to news that Meta is planning a $US40 billion increase in its stock buyback program.

Despite the new year fillip, Meta faced a particularly gruelling October, in which $US80 billion was wiped off the value of the stock on the back of lacklustre revenue earnings. During this period, the value of Meta shares fell below $US100 for the first time.

As of May 2, Meta stock was listed at $US243 per share.

Featured Partner

1

eToro

Buy Stocks

On eToro’s Website

Invest in global and ASX stocks

Explore over 4,000 stocks. Buy in bulk, or invest in fractional shares

eToro Service ARSN 637 489 466 promoted by eToro AUS Capital Limited ACN 612 791 803 AFSL 491139. Capital at risk. Other fees apply. See PDS and TMD.

Social media giant Meta—owner of the Facebook and Instagram platforms—has announced its first-ever drop in revenue in its 2022 second-quarter results.

The firm’s Q2 revenue was US$28.82 billion, down 1% on the $29.07 it recorded this time last year.

Profits slumped by over a third (36%), from $10,394 billion in Q2 2021 to $6,687 billion just reported. Earnings per share fell year-on-year from $3.61 to $2.46, a 32% decline.

There was good news for the company in terms of active users of its platforms. Facebook saw its ‘monthly active users’ increase by 1% to 2.93 billion in the year to 30 June.

Overall, Meta’s ‘family monthly active people’ figure rose by 4% to 3.65 billion for the year.

The firm has been recruiting heavily as it expands further into artificial intelligence applications. Headcount rose 32% year-on-year to 83,553.

David Wehner, Meta’s chief financial officer, said the prospects for the third quarter were flat at best: “We expect third quarter 2022 total revenue to be in the range of $26-28.5 billion. This outlook reflects a continuation of the weak advertising demand environment we experienced throughout the second quarter, which we believe is being driven by broader macroeconomic uncertainty.

“We expect 2022 total expenses to be in the range of $85-88 billion, lowered from our prior outlook of $87-92 billion. We have reduced our hiring and overall expense growth plans this year to account for the more challenging operating environment while continuing to direct resources toward our company priorities,” he said.

In November, Mr Wehner will take on a new role as Meta’s first chief strategy officer. Susan Li, Meta’s current vice president of finance, will take over the CFO role.

Meta shares hit $170 ahead of the announcement yesterday but fell back to $159 in after-hours trading on NASDAQ, the US tech stock index.

Facebook’s parent company, Meta Platforms, Inc. has officially changed its stock market ticket symbol to META from FB.

The move reinforces Meta’s transformation to a holding company that owns a wide range of technology applications, from its previous image that focused on being the owner of the Facebook social media platform.

Meta CEO, Mark Zuckerberg, has made conquering the so-called “metaverse”—a virtual reality space in which users can interact with a computer-generated environment and other users—a core corporate goal.

Earlier this month, Meta’s chief operating officer, Sheryl Sandberg, announced that she would be leaving the business this autumn after 14 years.

Meta’s share price stood at US$184 at the close of trading on June 9, 2022.

Shares in Meta, owner of Facebook, WhatsApp and Instagram, have risen by 17% from $174.95 (£140.0) to $204.25 (£163.4) despite a mixed set of first quarter results.

Meta’s numbers were eagerly awaited after the shock of its last quarterly results in February, when it announced its first-ever drop in Facebook daily user numbers. The resulting 26% fall in its share price was a record daily loss for a US firm.

The first quarter revenues of $27.9 billion reported in April were below analysts’ expectations of $28.3 billion, according to US market research site, Zacks. The quarterly revenue growth of 7% was the lowest in a decade, compared to a 48% growth in first-quarter revenue in 2021.

Meta pointed to loss of revenue in Russia as a headwind to growth, together with increased competition in North America and Europe and the impact of high inflation on advertising budgets.

However, Meta’s first-quarter earnings per share of $2.72 comfortably surpassed the market consensus of $2.54. Although Meta has scaled back expenditure for 2022, the earnings per share was also enhanced by a record $45 billion of share buy-backs in 2021.

There was particular scrutiny of Meta’s user numbers after the fall in the previous quarter. However, Facebook daily active users of 1.96 billion for March 2022 marked a return to growth of 4% year-on-year.

That said, the Meta products continue to face stiff competition from the likes of TikTok, with Meta investing significantly in Facebook Reels because of the growth in the popularity of short-video formats.

It’s been a difficult year for Meta shareholders, with the stock having lost half its value. It remains to be seen whether Meta’s significant investment in the metaverse, a virtual reality platform, will be sufficient to see off challenges to the popularity of its social media platforms.

If you’re considering buying or selling Meta shares, here’s what you need to know.

Note: investing in shares comes with no guarantees. When buying company shares, it’s possible to lose some, or even all, of your money.

That said, over the long term—a minimum of five years (preferably longer)—it’s possible for share-based investments to produce superior returns to those available from low interest-paying deposit accounts, especially once inflation has been factored in.

It’s worth asking yourself why you want to buy shares. Are you looking for capital growth, income from dividends or a combination of both? Your investment objectives will determine what type of shares you invest in, whether high-growth technology shares or more defensive companies with a reliable dividend stream.

Most investors look for sound fundamentals, including a track record of consistent earnings growth, a strong market position or products or services with future growth potential. These should provide a solid platform for future share price growth.

That said, other factors such as takeover rumours can drive up a company’s share price. Investors may also be attracted by recovery plays, with a depressed share price providing the potential for a rebound.

Here are the six steps to buying shares in Facebook (META)

1) Open an account

Whether you’re a seasoned share trader, or new to stock market-based investments, you’ll need to open an account with a regulated brokerage to buy shares in Meta.

Stockbroking is a competitive market place and services for DIY investors come in a range of guises—from online investing platforms run by some of the biggest names in financial services, to investment trading apps that work off your smartphone or tablet.

Before opening an account, bear in mind the following:

• Keep your ultimate financial goals in mind
• Be prepared to ride out stock market ups and downs
• Aim to keep trading costs to a minimum
• Remember that share investing can prompt tax charges like capital gains tax, for example, when selling part of your portfolio

And before buying any shares, it’s worth asking yourself these questions:

• Should I take financial advice?
• Am I comfortable with the level of risk in question?
• What’s my investing budget?
• Can I afford to lose money?
• Do I understand the company in which I’m looking to invest?
• Am I protected if my platform provider/adviser goes out of business?

2) Find out where Meta is traded

The ticker symbol for Meta Platforms Inc. is META and the company is traded on the Nasdaq market in the US. In Australia, the Nasdaq market opens between 11:30pm-1:30am AEST, depending on daylight savings.

You should be able to buy US shares through most brokerage accounts. Buying shares in US dollars incurs a foreign exchange fee (typically around 1%) unless you fund the purchase from a US dollar account.

Most brokerages also charge a slightly higher transaction fee for buying US shares rather than local shares on the ASX; however, it’s worth comparing the fees charged by different brokers if you plan to trade US shares regularly.

You will be asked to complete a W-8BEN form (valid for three years) which allows you to benefit from a reduction in withholding tax for qualifying US dividends and interest from 30% to 15%. Holding US shares also carries exposure to foreign exchange risk depending on how the Australian dollar compares compared to USD.

Since Australia and the US have a Double Tax Agreement, any dividends from US shares will be taxed in the US. However, you will be required to declare all of your foreign income on your Australian tax return.

As with Australian shares, any profit on US shares will be subject to Capital Gains Tax.

3) Do your research

To find out more about Meta, visit the company’s online investor relations page.

It’s also worth comparing Meta’s valuation to other comparable US technology companies. One way of doing this is to look at the relative price-earnings ratios—shares trading on a high price-earnings ratio have high expectations of substantial future growth.

Another useful research tool is brokers’ 12-month share price forecasts, which are available on financial websites. There are currently nearly 50 brokers following Meta shares, and their price forecasts give an indication of the upside and downside potential of the Meta share price over the next year.

4) What’s your investing strategy?

People tend to invest in one of two ways: either with a lump sum purchase, or via smaller, steadier amounts over time.

The latter method is often referred to as a means of ‘dollar cost averaging’, a stock market hack which helps you pay less per share on average over time in falling stock markets. Rather than waiting to build up a lump sum, it means an investor’s money can be put to use in the market straightaway. However, drip-feeding your investment may sacrifice capital growth if the share price is rising and you will also pay more in share-trading fees.

5) Place an order

Once you’re ready to buy shares in Meta, log in to your investing account or trading app. Type in Meta’s ticker symbol (META) and the number of shares you want to buy or the amount of money you’re prepared to invest.

Many brokerages also allow you to add a ‘stop loss’ once you have bought the shares, which allows you to limit your losses if the share price falls. For example, if you buy shares at $10, and set a stop loss of $9, your shares would be sold if the share price falls below $9, limiting your potential loss to 10%.

6) Review Meta’s performance

Whether your share portfolio is crammed full of companies or holds only a handful of stocks, it’s vital you review how each component is performing on a regular basis: monthly, quarterly, or annually.

Doing this gives you the opportunity to review performance and ask if any adjustments to your holdings are required—to maintain the status quo, buy more stock, or sell existing shares.

Featured Partner

1

eToro

Buy Stocks

On eToro’s Website

Invest in global and ASX stocks

Explore over 4,000 stocks. Buy in bulk, or invest in fractional shares

eToro Service ARSN 637 489 466 promoted by eToro AUS Capital Limited ACN 612 791 803 AFSL 491139. Capital at risk. Other fees apply. See PDS and TMD.

At some point, you will want to sell your holdings. To do so, log in to your investing platform, type in the ticker symbol and select the number of shares you want to sell.

Note that if you’ve made a substantial profit, you may be liable to pay Capital Gains Tax (CGT) when you come to sell your holdings. However, there is a CGT discount of 50% for Australian individuals who own an asset for 12 months or more. This means you pay tax on only half the net capital gain on that asset.

Find out more here about CGT, rates and allowances.

Investing directly in individual stocks can be an absorbing and, hopefully, profitable experience. It may also qualify you for shareholder perks specific to the company in question.

Investing directly in individual companies can, however, leave you vulnerable to stock market volatility and unforeseen swings in share prices. That’s why financial experts recommend that most people invest in a diversified mix of asset classes and funds that hold a ready-made portfolio of upwards of fifty different company shares.

Being a major component of the Nasdaq index, Meta is found in many global and specialist technology funds and investment trusts, as well as tracker-style Exchange Traded Funds.