How to Buy Meta Stock in 2025

Meta (NASDAQ:META), the company formally known as Facebook, had a tough time in 2022. After changing its name in 2021 in the midst of various scandals, the company has been trying to pivot its business towards VR and the Metaverse it is developing.

It’s still unclear if the shift to the Metaverse is a smart move, but it hasn’t been a great period for Meta shareholders. Meta stock fell to its lowest price since 2015, reaching $88 in November 2022. Since then, it has bounced back nicely to $174 by February 2023, but that doesn’t mean it’s too late to invest in Meta stock.

So let’s take a look at everything you need to know about how to buy Meta stock in 2023.

Step 1: Decide Where to Buy Meta Stock

Below, we review a popular trading platform, which should be helpful for those deciding on where to buy Meta stock.

Webull – Commission-Free Trading with the Smallest Deposit

Webull is a popular option for traders looking to invest in Meta stock on a budget. In addition to the standard cash and margin accounts, this broker also offers various IRAs for US investors.

WeBull is a great platform for new investors, with a deposit minimum of just $5.  WeBull allows users to buy fractional shares of companies to build up their portfolios. Furthermore, all US-listed companies can be invested in without any trading fees. As such, Meta stock is offered on a commission-free basis.

There are some non-US stocks that are offered as ADRs, however, note that there will be a fee to pay. According to the platform, this ranges between $0.01 and $0.03 per stock. There is no minimum deposit for WeBull and, depending on the payment method used, no deposit fees either.

The Webull workstation is customizable, allowing users to tinker with the website/app to show what’s most relevant to them. The WeBull app is one of the better ones out there. It’s intuitive to use and has useful tools for both novice and experienced traders alike, allowing all users to track and modify their investments on the go.

Your capital is at risk.

Step 2: Is Meta a Good Investment?

Over the last decade, the Facebook and then Meta stock price increased dramatically. Someone who invested in Facebook stock at the IPO in 2012 would be up 483% today. However, almost the entirety of that growth is from when the stock was still Facebook. Since rebranding to Meta in 2021, things haven’t gone so well.

The Meta stock price today, in February 2023, is down 6.74% compared to five years ago. That means investors who bought into Facebook in 2018 haven’t been as fortunate as those who invested earlier.

Why Did Meta Stock Drop?

The Meta stock price fell off a cliff at the start of 2022, falling from $336 at the start of the year to $206 by mid-February and a seven-year low of $88 by November.

The stock dropped due to the direction of the company. As Facebook, the stock forecast for the company was strong, with high revenues and relatively low expenses. That changed when the company changed its name to Meta and began going all in on its Metaverse.

Meta is spending money at an astonishing rate on the Metaverse and VR projects and looks to be years away from seeing any kind of return on that investment. Worse still, what Meta has to show for its huge investment is widely mocked as being technologically poor and out of touch with what users want.

Facebook and Meta Stock Price History

The Meta stock price has recovered tremendously in 2023, but it’s still a long way off its peak. Unlike other companies which had big stock drops last year, Meta can’t blame economic uncertainty. The 2022 tumble to less than $100 falls squarely on the shoulders of the company itself and the direction it is taking.

Despite this, anyone who invested in Meta at its low point towards the end of last year has done very well for themselves. Year to date, Meta is up by around 46% in 2023. So could this be the start of a turnaround for the company?

Check out the Facebook and Meta stock price chart history below:

What is Meta?

Meta, formally Facebook, was founded in 2004 by Mark Zuckerberg and his college roommates Chris Hughes, Andrew McCollum, Dustin Moskovitz, and Eduardo Saverin. Starting as a single website, the firm is now a multinational technology company.

The social networking platform Facebook was initially created to connect university students to one another in the US. However, by 2006, the platform became accessible globally, and anyone over the age of 13 could register.

Facebook quickly went on to overtake existing social media platforms like MySpace and bought competing ones such as Instagram. As of Q4 2022, Meta notes that over 3.74 billion people were using at least one of its platforms each month.

Meta is the “F” in the FAANG group of tech stocks. This is an acronym that refers to five of the biggest companies in the sector. Other members of the group include Amazon, Apple, Netflix, and Alphabet (Google).

Meta was able to solidify its growth by purchasing multiple well-known platforms and services, such as WhatsApp, Instagram, Oculus VR, and Beluga. The vast majority of Meta’s revenue comes from advertising via Facebook, Instagram, and WhatsApp.

Facebook changed its name to Meta in 2021. Meta’s re-branding signified a shift from being a social media platform to becoming a Metaverse ecosystem with various AR and VR products and apps. Going forward, the company hopes to develop a Metaverse that people will use on a daily basis, similar to movies like Ready Player One.

Meta Stock Price – How Much is Meta Stock Worth?

Meta stock was added to the NASDAQ in May 2012 at a little over $38. The all-time highest value of Meta was in September 2021, when the stock hit almost $380. After this, the company lost billions of dollars in market value.

The stock drop was largely due to the aforementioned skepticism from investors about the direction of the company.

Another major factor affecting Meta in recent years has been Apple’s change to its rules and software surrounding app privacy. This made it much harder for advertisers to track people’s behaviors, which means less revenue for firms that make most of their money this way – like Meta. These factors combined led to disappointing financial results in early 2022 and a weak forecast.

Meta released a statement citing Apple’s privacy changes as well as competition from other platforms as the primary reason for the negative outlook. So, what happened to Meta stock? Well, it cratered from $336 at the start of 2022 to $206 a little over a month later. The sell-off from investors was massive, far worse than any other major tech company experienced in the first half of 2022.

With that said, many Wall Street analysts rate Meta as a strong buy, so this could mean the stock is discounted at the February 2023 price of around $175. For anyone still making their mind up on whether or not to buy Meta stock, we’ll go over why this might make it a worthy addition to an investment portfolio next.

EPS and P/E Ratio

To get a clearer indication of the financial health of a company they wish to invest in, traders can look at the quarterly financials.

Here’s a quick breakdown of the EPS reported in the previous four earnings calls from Meta:

• Q1 2022, reported EPS was $2.72. Down 17.58% YoY.
• Q2 2022, reported EPS was $2.46. Down 31.86% YoY.
• Q3 2022, reported EPS was $1.64. Down 49.07% YoY.
• Q4 2022, reported EPS was $1.76. Down 52.04% YoY.

Below is the revenue from the same reports:

• Q1 2022, reported revenue was $27.91bn. Up 6.64% YoY.
• Q2 2022, reported revenue was $28.82bn. Down 0.88% YoY.
• Q3 2022, reported revenue was $27.71bn. Down 4.47% YoY.
• Q4 2022, reported revenue was $32.17bn. Down 4.47% YoY.

Looking at this information when learning how to invest in Meta stock will allow traders to assess the price-to-earnings (P/E) ratio.

This can be done by dividing the share price by the EPS. Based on the Meta stock price at the time of writing, the P/E ratio is 20.4.

Market Capitalization

At the time of writing, the market capitalization of Meta is just over $453 billion.

Although Meta stock has lost value in recent months, much like Snap stock it is still among the largest companies globally by market cap.

Meta Index Funds

People can also buy Meta stock via an index fund or ETF.

Some of the more popular funds that Meta is a component of are listed below:

• NASDAQ 100
• S&P 500
• The Communication Services Select Sector SPDR
• The SPDR Euro Stoxx 50 ETF

Read More: Traders of all skill sets can learn how to trade ETFs here.

Meta Stock Dividends

Meta does not distribute dividends to investors. The company says that it retains its earnings instead. This is in order to finance the long-term growth of the business.

Meta Stock Forecast

As we mentioned, the majority of Wall Street analysts have Meta stock as either a ‘buy’ or ‘strong buy’.

That said, below, we discuss some of the core reasons why traders might opt to buy Meta stock right now:

Meta is Invested in a Virtual Reality Future

Meta is always working on staying relevant and has gone from a social networking company to one of the most popular metaverse stocks to buy.

• Meta has invested billions of dollars into VR/AR. In 2021, the company invested $10 billion in the metaverse.
• Meta invested $20 billion in capital projects in 2022 and will reach approximately $25 billion in 2023.
• In June 2022, Meta introduced three new AI models which focus on visual-audio understanding. These models, which emphasize human voices in videos, are intended to move people toward a more immersive reality.
• Moreover, the company has developed a VR platform called Horizon Worlds. This allows people to connect in a virtual reality world, create their own avatars, host parties and even partake in professional meetings.
• Meta believes its metaverse is the future of the way we interact and will enable people to play, work and connect with others in online and immersive experiences.
• The company also aims to monetize it by creating a digital ecosystem where people can purchase avatars and other virtual goods.

In February 2022, Meta announced it has surpassed 300,000 monthly users on its Horizon Worlds platform, although this is alleged to have dropped to 200,000 by October. Meta is constantly working on updating and improving Horizon Worlds and hopes to achieve mainstream success as the go-to place to meet in VR.

This includes Meta’s new Horizon Home feature that offers a wide range of distinctive surroundings via VR headsets, from a cutting-edge cyberpunk flat to a cozy cabin.

Moreover, as a welcome addition for metaverse fans, users can now view immersive films, invite their friends into their homes to hang out, and play cooperative video games.

Invest in Meta: Buy the Dip

Traders looking at the Meta stock price today may be interested in picking up some shares on the cheap. Despite the stock rally at the start of 2023, Meta is still down over the last five years. That means it could be a good value stock to invest in right now.

Meta five-year stock price chart:

Those who wish to buy Meta stock in 2023 will want to do look closely at what the company is doing in the VR space. For over a decade, Meta, then Facebook, was focused almost solely on advertising and social media platforms. However, the next decade for Meta will see the company shift ever more to its Metaverse project.

Whether or not Meta is a good buy right now depends almost entirely on how investors think it will compete in the VR industry going forward. The Meta stock forecast is difficult to predict for the next couple of years, and its price will likely be tied to how the VR market grows by 2025 and 2030.

The Company’s Advertising Revenue Growth 

Meta is facing short-term headwinds. This is due to inflation hitting a 41-year high in the US, rising interest rates, and shifting focus away from its social media platforms towards VR.

According to market analysts:

• Nearly all of Meta’s revenue comes from its advertising division, which enjoys a near-duopoly with Alphabet in the US and other important areas.
• Meta had its first revenue decrease in 2022 since its IPO, with revenue for the year falling by 1.12%.
• The company also warned that tough times are ahead, the disappointing projection, according to Meta, was mostly caused by Apple’s privacy update for iOS.
• That said, investors are worried about the combined effect of negative growth in advertising while the company is spending more than ever.
• On the advertising side, the company’s revenue growth is likely to pick up speed once wider economic conditions ease.
• In 2021, the company’s share of the global digital advertising market was around 23%.
• Over 10 million advertisers use the personalized ad tools offered by Meta.

Meta is Investing in the Short-Form Video Trend

Meta has faced fierce competition from platforms such as TikTok.

However, the company has focused on its short-form video technology to capitalize on this ongoing trend.

• Meta increased its investment in new short videos for Instagram and Facebook as its revenue growth slowed.
• It’s hoped that products such as Meta’s Instagram Reels help the company fight off competition from TikTok.
• The company said Reels has become one of its fastest-growing content formats, as well as fueling engagement growth on Instagram.

Reality Labs and Family of Apps

Meta is behind some of the most popular apps globally. Meta’s so-called ‘Family of Apps’  includes Facebook, Messenger, WhatsApp, and Instagram.

There’s also the ‘Reality Labs’ side of the business, which includes the VR and Metaverse divisions.

Management modified how the firm reported its financials when it changed its name from Facebook to Meta. This saw the company reporting on its Family of Apps, as well as Reality Labs.

As such, Meta now has two reportable segments.

Here’s some information from the Q1 2022 highlights:

• Daily active users reached 2.96 billion in Q4 2022.
• As of Q4 2022, Meta has 3.74 billion monthly active users across all of its products.
• Daily active users on Facebook crossed the 2 billion mark for the first tie in 2022.
• Facebook’s monthly active users also increased to 2.963 billion last year.
• The average revenue per user (ARPU) from all Meta products fell slightly to $39.63 in 2022, down from $40.96 the year before.
• This still represents significant ARPU growth for the company, as the figure in 2020 was $32.03.

The company’s net profit in 2022 was down 41.07% to $23.2bn, this is largely attributed to spending increasing from $48.53bn in 2021 to $63.91bn in 2022. The Metaverse and VR have been the largest spending areas for Meta, the company has spent over $36bn on the projects since 2019.

Step 3: Open an Account and Buy Meta Stock

Now that we’ve covered the fundamentals of Meta’s stock price, history, and core business, you can follow the signup process with Webull. There is a clear process outlined, where you will need to add some basic personal information, provide some identity documents, and wait for your account to be created.

Once your account is confirmed, simply search the site’s search bar for META, and go through the motions to open a position in this particular stock.

Is Meta Stock a Buy?

• Out of 57 sell-side Wall Street analysts in February 2023, 28 rate Meta stock as a strong buy, and 13 have the company as a buy.
• The company aims to give TikTok a run for its money with short-form video tech via Instagram and Facebook.
• The majority of Meta’s revenue comes from advertising. At the time of writing, the company has more than 10 million ad firms using its service.
• Revenue was down in 2022 as the company shifts its focus to VR and the Metaverse.
• By February 2022, Horizon Worlds, which is part of the company’s metaverse, had drawn in over 300,000 users. Horizon Worlds was only released in December 2021.

Facebook was the king of social media in the 2000s and 2010s. Now, Meta aims to be the king of VR in the coming decades.

Conclusion

Potential Meta investors look to have missed the absolute low of $88 for the stock in 2022, however, now could still be a good buying opportunity.

Meta is at the beginning of a journey that could make it one of the most important companies in the world. Its massive investments in VR and the Metaverse are a risk to the company, but if they pay off, the potential for Meta’s stock is nearly limitless.

Mark Zuckerberg and Meta think they can see the future of human communication, interaction, work, and hobbies. Time will tell whether the Metaverse is the future, but if it is, it will dwarf the impact that Facebook had on the internet and society.

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