Meta Stock Price (META)

What is Meta?

Meta Platforms, Inc. is an American, multinational social networking company. It's listed as the 31st largest company on the Forbes 2023 Global 2000 rankings and is estimated to have over three billion users worldwide across its platforms.

The company was founded by Mark Zuckerberg, Dustin Moskovitz, Chris R. Hughes, Andrew McCollum and Eduardo P. Saverin in 2004. It was formerly known as TheFacebook, Inc. and Facebook, Inc., then changed its name to Meta in October 2021. Today, the company operates under two segments: Family of Apps – which contains Facebook, Instagram, Messenger Threads and WhatsApp – and Reality Labs, which provides augmented virtual reality products designed to expand into and develop the wider technological concept of the 'metaverse'.

Meta stock went public on the 18th of May 2012 with one of the most anticipated IPOs in history – shares closed at $38.23 that day. Although stocks reached $200 in July 2018, momentum halted after the company released earnings that indicated less significant growth in the future, while Meta is highly reliant on ad revenue as it currently accounts for 98% of its revenue. Since then, there have been several product announcements and data-breach scandals that have prompted Meta's stock price to fluctuate.

What affects the share price of Meta stocks?

A variety of factors can affect the stocks and share prices of Meta:

• New regulations: Social media remains a largely unregulated market and new regulations could restrict Meta's practices. In 2023, the company was fined $414 million by European regulators as it had illegally forced users to accept personalised ads. It was fined a further €1.2bn for mishandling user information.
• New product announcements: Changes to products and launches of new ones can affect interest in the brand, which can cause the value of Meta shares to fluctuate. The launch of Threads saw a record 100 million users within the first five days, which was very notable for the company's stock price.
• Competitors: Rival social media platforms, including TikTok, X and Snapchat, pose a constant threat to Meta platforms.
• News coverage: Public perception can have a dramatic impact on Meta shares and, with frequent coverage of this worldwide company, every headline counts.
• Data concerns: In light of recent scandals involving user data, Meta faces an ongoing battle to win the trust of users. Forbes Advisor reported that Meta-owned platforms are among the least-trusted technology companies by those in the UK. There has also been hesitation surrounding its latest product, Threads.
• Diversification: Currently, Meta is extremely dependent on ad revenue as a source of income. Its virtual reality segment shows promise, although future success remains unclear.

How to trade Meta stocks?

With Tradu, trading Meta stock can be done via contracts for difference (CFDs). Choosing derivatives that don't involve taking full ownership of the underlying asset means you can speculate both ways based on your analysis and strategy.

Alternatively, Meta stock investing means that you take full ownership of the underlying asset.

Trading Meta stocks

• CFDs: When trading a contract for difference, you agree to exchange the difference in the Meta stock price between the points at which the contract was opened and closed.

These approaches to trading financial derivatives can be executed with leverage. This way, you can increase your market exposure with a smaller deposit. It's important to be aware of the risks involved, however, as this approach can also magnify losses.

How to invest in Meta stocks

Investing in Meta stock works differently from financial derivatives like CFDs. This approach involves taking ownership of the underlying asset and is a long-term approach that can offer more stability. After buying Meta stock, the price needs to rise for you to be able to profit.

You can't use leverage when trading stocks directly, which can result in fewer opportunities to profit – a bearish market for Meta shares does you no favours.

What are the pros and cons of trading Meta stocks?

Is Meta stock a good investment? There are several factors you may want to consider:

• Leverage: You can increase your market exposure by trading with leverage up to 1:5 to maximise your profits from smaller deposits. Make sure you're aware of the risks this involves, though.
• Trade both ways: Trading via CFDs means you can consider rising and falling prices, allowing you to take advantage of bullish or bearish markets.
• Coverage: Meta has a global presence and is covered by news outlets almost daily. This means you won't be short of information when shaping your trading strategy for Meta stock.

Cons of trading Meta stocks

As with trading any stock or asset, there can be risks involved when investing in or trading Meta stock:

• Leverage: While leverage can expose you to more of the market, this could result in greater losses. Be sure to consider these risks before opening any trades.
• Market volatility: As with any other stock, Meta stocks can fluctuate heavily in a way that is often difficult or impossible to predict.

How to start trading Meta stocks with Tradu

1. Open a Tradu account. All you need to do is sign up online to start trading with us.
2. Use our resources. Be prepared before you begin trading by viewing our market, trading and platform guides.
3. Plan your approach. When you're ready, shape a strategy using our advanced platform features, which empower you to conduct technical analysis.
4. Open your first position. Use our live Meta stock price chart to get better acquainted with the market and identify opportunities.
5. Get support: We offer customer support 24/5 to make the most out of your trading experience.
6. Diversify. Trade several other markets including CFDs on indices, forex and commodities.