How to Buy Facebook / Meta Stock in Nigeria
How to Buy Facebook / Meta Stock in Nigeria revealed. We tested and verified the best way to buy Meta Stock in Nigeria.
This is a complete guide on how to buy Meta Stock in Nigeria.
In this in-depth guide you’ll learn:
- What is Meta / Facebook Stock?
- How to buy Meta Stock in Nigeria?
- How to buy Meta Stock for beginner traders?
- Which broker can you use to buy Meta Stock?
- Which broker offers a signup bonus?
- Which brokers offer a $5 (2 076 NGN) minimum deposit for investing in Meta Stock?
- How many Meta Stock should you buy?
And lots more…
So if you’re ready to go “all in” with the Meta / Facebook share for Nigerians…
Let’s dive right in…
👉 Definition: a stock is a percentage of ownership in a company, such as Meta, or a financial asset. Investors who hold shares of any company are known as shareholders.
How to Buy Facebook / Meta Stock in Nigeria (Updated 2022)
Step by Step on how to buy Meta Stock in Nigeria
Step 1: Choose a reputable brokerage
👉 An online brokerage account allows you to buy and sell stocks. Furthermore, online brokerage accounts provide a wide range of research, instructional tools, and account types to help you achieve your investment objectives.
👉 Long-term investors, such as those saving for their children’s education or their own retirement, may want to consider investing in AAPL through tax-advantaged vehicles such as individual retirement accounts (IRAs).
👉 If you’re saving for a down payment on a house or building wealth, a taxable brokerage account is a better option. It’s a good idea to do some comparison shopping to find the best broker in Nigeria for your needs.
Step 2: Decide how much you wish to invest in Meta stocks
👉 How much money do you have left over at the end of the month after paying all of your monthly bills? That is the amount you must save and invest.
👉 If you don’t already have an emergency fund and retirement savings, you should start now. However, you are free to invest the remainder as you see fit.
👉 You might not want to buy an entire share of AAPL stock at first. In this case, you might want to purchase a fraction of that share, also known as a fractional share. Some brokerages sell these traditional share sections.
👉 When you are ready, you can invest a large sum of money all at once or in small amounts over a long period of time using dollar-cost averaging.
👉 Regardless of the stock’s price, fixed dollar amounts of stock are purchased on a regular basis, usually monthly. It reduces your risk and lowers your cost per share in the long run.
👉 Consider how AAPL stock might fit into your overall portfolio if you have other investments. Meta investors should be aware of their other holdings in large-cap technology companies.
Step 3: Devise an investment plan
👉 Before making any stock purchases, carefully consider your investment objectives. Investing in large quantities of single shares of any corporation is always risky.
👉 Meta stock has a history of price volatility and can be greatly influenced by outside factors. While past performance is no guarantee of future results, you may face similar volatility in the future. Price swings should be considered when investing in Meta stock.
Step 4: Do sufficient research on FB stock
👉 Purchasing stock in a single company, even if it is a household name like Meta, is an exciting prospect, but investors in Nigeria should proceed with caution and thorough research.
👉 As a starting point for your evaluation, review the annual and quarterly reports that publicly traded companies like Meta are required to file on a regular basis.
👉 These reports are known as earnings reports or quarterly earnings in the financial press, and they contain a wealth of information on a company’s performance and finances.
👉 Once you have all of this information, you can use it to determine whether Meta is a good investment.
Step 5: Determine the order type that you would like to place
👉 You can use your brokerage platform to request to buy FB stock at the best current price, or you can use more complicated order types, such as limit or stop orders, to only acquire shares after the stock price falls below a specified threshold.
👉 If you place an order outside of the hours permitted by your brokerage, the purchase will be completed once trading resumes.
Step 6: Monitor the ongoing performance of your FB stock purchase
👉 It’s a good idea to monitor your investments and see how they’re performing. When evaluating the performance of Meta or any other company, the annualised percent return is a good place to start.
👉 You can compare your investment to other investments using certain benchmarks to see how well it performed. Consider re-examining the initial data to see how the stock performance has changed over time.
Meta Stock Overview for Nigerians
👉 In the following industries, Meta shares trade as Nasdaq: FB (Class A), Nasdaq-100 component, S&P 100 component, and S&P 500 component: Consumer electronics, social media, and social network advertising.
👉 Meta Platforms, Inc., doing business as Meta and formerly known as Facebook, Inc. and TheFacebook, Inc., is a Menlo Park, California-based American multinational technology conglomerate.
👉 Facebook, Instagram, and WhatsApp, among other subsidiaries, are all owned by the company. Meta is one of the most valuable companies in the world. Along with Google, Amazon, Apple, and Microsoft, it is regarded as one of the Big Five American information technology companies.
👉 Facebook, Messenger, Facebook Watch, and Facebook Portal are examples of Meta products and services. It also owns Oculus, Giphy, Mapillary, Kustomer, and Presize, as well as a 9.99 percent stake in Jio Platforms. The sale of advertisement placements to marketers generated 97.5 percent of the company’s revenue in 2021.
👉 Media outlets reported in October 2021 that Facebook’s parent company planned to change its name to “reflect its focus on building [what it refers to as] the metaverse.” The “metaverse,” according to Meta, is the integrated environment that connects all of the company’s products and services. Later that month, on October 28, it was renamed Meta.
👉 Stock trading has become increasingly popular, and over the last decade, there has been a significant increase in participation from millennials in the stock market, owing to popular mobile trading apps, which has boosted trading figures.
👉 Nigeria has also seen an increase in interest in online trading from both millennials and older stock traders, with more traders emerging as internet service providers’ coverage has improved and the number of brokers accepting traders from African countries has increased.
👉 Investing is essential in Nigeria if you want to grow your money and keep up with inflation. Inflation reduces the purchasing power of money over time. If you do not invest wisely, the value of your monthly salary savings will depreciate day by day.
👉 Investing in stocks in Nigeria has never been easier thanks to technological advancements. If you’re thinking about investing in the Nigerian stock market, you should know that it can provide lucrative returns in the medium to long term.
👉 The stock market is a gathering place for people who want to buy and sell securities to meet, communicate, and complete transactions. Stock markets, which also serve as an economic barometer, enable price discovery for corporate shares.
👉 Stock market participants compete with one another to find the best price, ensuring that the market is always open to new investors and offers a high level of liquidity.
👉 This means that market participants can trade stocks and other qualifying financial products on stock exchanges with complete confidence and little to no operational risk. According to the regulator, stock exchanges operate as both primary and secondary markets.
👉 IPOs (initial public offerings) enable companies to sell equity to the general public for the first time on the stock exchange.
👉 This activity assists businesses in obtaining financing from a variety of sources. A division of a corporation (say, into 20 million shares) and the sale of a portion of those shares (say, 5 million shares) to the public at a price (say, $10 per share) are two examples of this.
👉 A firm must have a market to sell these shares in order to make this process more efficient. This type of exchange is facilitated by the stock market.
👉 Investors will be given stock in the company, which they can keep for a set period of time in anticipation of a rise in the share price and dividend payments. Companies and their financial partners pay the stock exchange for the services it provides in this capital-raising process.
👉 Meta is one of the most well-known stocks available today. Continue reading to find out how to buy Meta stock in Nigeria.
Pros and Cons of Buying Meta Shares
👉 Meta (FB), formerly Facebook, has experienced ups and downs in recent years, as has its stock price. It has remained a high-profile company that consistently captures the public’s imagination since its initial public offering in May 2012.
👉 Meta is one of the largest companies in the United States and is widely held by both retail and institutional investors. As Facebook, it was included in the popular FAANG acronym with Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Alphabet (GOOG) unit Google. For years following the IPO, its shares experienced an exceptionally strong and relatively smooth rise, but this has been punctuated by shareholder concern over data privacy scandals and anti-trust investigations.
👉 Meta shares overcame those issues, reaching all-time highs in August 2021, only to plummet 25% on Feb. 3, 2022, after the company released quarterly results and a revenue outlook that fell short of analysts’ expectations.
👉 Meta Platforms has undergone an “about face” in recent months. From Apple’s data privacy changes to fierce competition, the company is facing headwinds.
👉 On top of that, the company is heavily investing in the metaverse, which will reduce earnings by $10 billion in 2021.
👉 The stock remains as a strong buy.
Pros of buying Meta shares in 2022
👉 Meta Platforms (NASDAQ: FB) has seen stock sentiment shift from a growth stock to a legitimate value stock in a matter of months. Due to its strong free cash flows, the stock has typically avoided tech-like volatility, but the recent earnings report sent the stock plummeting, wiping out nearly three years of gains.
👉 The stock is now trading at a trailing earnings multiple of 16 times, which is typical for companies with no growth. I anticipate that growth will resume and that the stock price will react dramatically. As one of my higher conviction ideas in today’s market, I rate shares as a strong buy.
👉 After peaking at $384 per share in late 2021, Facebook has dropped more than 40% to trade around $230 per share.
👉 While sentiment toward the stock remains negative, it is critical not to let the stock price action influence the fundamental evaluation. FB remains one of the most appealing advertising platforms in the world, having consistently increased its average revenue per user even as ARPU exceeds $50 per quarter.
👉 However, at these prices, the fundamental thesis may be even more rudimentary. FB is currently trading at about 16 times trailing earnings. In 2021, the company will have converted 97 percent of its net income into free cash flow and will have $48 billion in net cash on its balance sheet. In 2021, the company repurchased $44.8 billion of stock, exceeding the $38 billion in free cash flow.
👉 That shift in capital allocation policies appears to have gone unnoticed by Wall Street, as Facebook, and much of the rest of the tech industry, has historically avoided aggressive share repurchases in favour of hoarding cash. Given that the stock price is significantly lower, I believe FB should maintain a similar capital allocation policy in the future.
👉 The company could theoretically buy back around 7% of outstanding shares each year using only free cash flow, providing an appealing shareholder yield while investors wait for growth to return.
👉 Some investors may consider potential ROI from metaverse investments to be a “pro” of purchasing the stock, but in my opinion, it is still too early to tell if the metaverse will pay off for the company.
Cons of buying Meta shares in 2022
👉 That brings us to the disadvantages of investing in Facebook. I’ve already discussed the company’s data privacy and competition concerns. Aside from that, Facebook is heavily investing in the metaverse. We can see in the table below that “reality labs,” the segment that includes metaverse investments, cost the company $3.3 billion in operating losses in the fourth quarter.
👉 I previously stated that the company is trading at 16 times earnings. To give you an idea of how much the company is investing in the metaverse, if we exclude metaverse losses, the company would have earned $10 billion more in operating income and the stock would be trading at only 13x earnings.
👉 If the metaverse investments fail to pay off, investors will have effectively subsidised what will be remembered as a costly side project for CEO Zuckerberg. That $10 billion (and growing) in investment spending could have been better spent on increasing investment in their core businesses or simply buying back more stock.
Should You Invest in Meta in 2022?
👉 According to Wall Street consensus estimates, earnings will fall 10% this year before rebounding in the future.
👉 Earnings are expected to grow by only 78 percent over the next five years, while revenues are expected to grow by 84 percent.
👉 Wall Street is not providing any operating leverage to the company, as it is expected that profits would grow faster than revenues as the company gradually reduces its investment in hyper-growth ambitions. It is expected that once growth resumes, the stock will re-rate to at least a 1.5x price to earnings growth ratio (‘PEG ratio’), if not higher, due to the net cash balance sheet and willingness to repurchase shares. Using a projected 19% earnings growth rate for 2023, one could see FB trading at 29x earnings by next year, representing a 100% gain in a year.
👉 Reviewers are less concerned about Facebook’s ability to work around AAPL’s data privacy changes because the company’s track record has earned it the benefit of the doubt – at least for now. They are more concerned about the possibility of TikTok or SNAP competition.
👉 Because social networks lose relevance if all of your friends and acquaintances aren’t on them, Facebook must work hard to reclaim lost market share. If user growth does not resume within the next 2-3 quarters, it will be concerning. The current valuation may be able to support a modest growth forecast, but the confidence in the stock would suffer significantly.
👉 Reviewers rate shares as a strong buy as one of their higher conviction ideas because there are multiple catalysts for a re-rating, and they have high confidence that the company will be able to work through the near-term headwinds.
Best Brokers for Buying Amazon Shares in Nigeria
|🥇 Exness||🥇 FXTM||🥇 XM||🥇 Tickmill||🥇 Pepperstone|
|⚖️ Regulation||FSA, CBCS, FSC, FSC BVI, FSCA, CySEC, FCA||CySEC, FSCA, FCA, FSC Mauritius||FSCA, IFSC, ASIC, CySEC, DFSA||FSA, FCA, CySEC, Labuan FSA, FSCA||ASIC, BaFin, CMA, CySEC, DFSA, FCA and SCB|
|💻 Trading Platform||MetaTrader 4, MetaTrader 5, Exness Terminal, Exness Trader app||MetaTrader 4, MetaTrader 5, FXTM Trader||MetaTrader 4, MetaTrader 5, XM Mobile App||MetaTrader 4, MetaTrader 5||• MetaTrader 4,
• MetaTrader 5,
|💰 Withdrawal Fee||No||Yes||No||No||No|
|✔️ Demo Account||Yes||Yes||Yes||Yes||Yes|
|📈 Min Deposit||41,000 Naira||10,000 Naira||2,000 Naira||41,500 Naira||60,700 Nigerian Naira|
|💸 Spread||From 0.0 pips EUR/USD||From 0.0 pips||From 0.0 pips||From 0.0 pips||From 0.0 pips|
|💳 Commissions||$3.5 on Zero Account||Yes, variable||USD7/100 000||2 per side per 100,000 traded||USD 0.04 (USD 0.08 round turn)|
|🛑 Margin Call/Stop-Out||None||40%||50%||100%/30%||50%/0%|
|📲 Order Execution||None||Market||Instant||Instant||Instant|
|💰 No-Deposit Bonus||No||Yes||Yes||Yes||No|
|💳 Cent Accounts||Yes||Yes||Yes||No||No|
|💻 Account Types||• Standard Account, Standard Cent Account,|
• Raw Spread Account,
• Zero Account, Pro Account
|• Micro Account,|
• Advantage Plus Account
|• Micro Account, Standard Account, XM Ultra-Low Account, Shares Account||• Pro Account, Classic Account,|
• VIP Account
|• Standard account,
• Razor Account,
• Professional Account,
|⚖️ CBN Regulation||No||No||No||No||No|
|💰 NGN Deposits||Yes||Yes||Yes||No||Yes|
|✔️ Nigerian Naira Account||Yes||Yes||No||No||No|
|📞 Customer Service Hours||24/7||24/5||24/5||24/5||24/7|
|🛍 Retail Investor Accounts||5||2||4||1||2|
|☪️ Islamic Account||Yes||Yes||Yes||Yes||Yes|
Best Mobile Apps to buy US Stocks in Nigeria
👉 The stock market in the United States is one of the most appealing venues for investors, regardless of their investment style, experience, or goal.
👉 It used to be difficult for a Nigerian or non-US citizen to acquire and invest in US securities. However, thanks to technological advancement, Nigerians can now invest in the US stock market using their smartphone, tablet, iPad, or computer.
👉 Leadtrader is well-known among stock apps in Nigeria for having the lowest brokerage fees, with commissions as low as 0.75 percent in some cases. When you give them permission to trade on your behalf, the commission can reach 1.35 percent of the total.
👉 This software provides a comprehensive internet trading platform for Nigerians. It also provides new investors with regular stock recommendation options, as well as a variety of services such as dividend management, certificate administration, and registrar handling.
👉 Meristem Securities’ software provides traders with a secure platform from which to trade using their mobile phones. Furthermore, it offers a diverse range of companies to choose from, with assets in both domestic and international markets.
👉 Rise is more than just a stock trading app; it can be thought of as a global asset management firm. It offers dollar-denominated investments in which you can put your money to work while watching its value rise.
👉 As a result of this arrangement, Rise skilled fund manager trades on your behalf. In addition, you can invest in real estate, fixed assets, or stock asset investments.
Frequently Asked Questions
Can I buy stock directly from Meta?
No, Meta stock should be bought through a stockbroker in Nigeria, whether it is offshore or based locally, as Meta stock can be purchased online through your selected broker.
Is Meta stock a good buy in 2022?
Most analysts consider Meta stock to be a good growth investment in 2022 for investors in Nigeria and elsewhere.
Is it worth it to buy one share of a stock?
Yes, especially with the emergence of commission-free stock trading, it has become a better option than ever to buy a single share in a company. This is a good approach for beginner investors in Nigeria.
What is the best way to buy Meta stock?
To buy Meta stock, investors in Nigeria should take the following steps:
- Choose a reputable stockbroker
- Decide on your investment amount
- Set up an investment plan
- Do enough research on you Meta stock
- Determine the order type
- Continue to monitor the performance of your Meta stock