How to buy WhatsApp stock? WhatsApp is a popular messenger service owned by Facebook. WhatsApp is used by more than 2 billion people worldwide in 180 countries to stay in touch with friends and family, and it is the most popular mobile messenger app worldwide. If you want to invest in WhatsApp, you’ll need to buy shares in its parent company, Facebook.
If you’re interested in buying WhatsApp stock, it can be done entirely online. While you may already be thinking of investing in WhatsApp stock, this article does not advise you to invest in WhatsApp stock. We will share how you can buy stock in companies, with WhatsApp as an example. Investing in WhatsApp is an investment decision for which you might want to consult your investment advisor. This is not investment advice by any means.
Overview of WhatsApp
WhatsApp Messenger is free to use and was initially developed by WhatsApp, Inc. and was later acquired by Facebook, Inc. The application allows users to send text messages, send group messages, voice messages, make voice and video calls, share images, documents, user locations and other content. It runs primarily on mobile devices but can also be used on the desktop.
WhatsApp requires the user to provide a mobile phone number for registering with the service. WhatsApp Business was released in 2018 to allow companies to communicate with their customers. WhatsApp Business was targeted at small business owners. WhatsApp also has a Stories feature similar to the feature in other social apps such as Snapchat and Instagram. Stories allow users to share photos, videos and texts that disappear after 24 hours.
In February 2014, WhatsApp was acquired by Facebook for 19 billion U.S. dollars, an unheard-of purchase price. WhatsApp’s strength is its user engagement, which is ahead of other social networks such as Facebook, Instagram and Twitter.
Facebook, Inc. is an American multinational company founded in 2004 by Mark Zuckerberg and has its headquarters in Menlo Park, California, in the United States. Facebook’s products include Facebook, which allows people to connect with friends and family through mobile devices and personal computers; Instagram, which is a community for sharing photos, videos and private messages; Messenger, which is a messaging application for people to connect with friends, family, groups, and businesses across platforms and devices; and WhatsApp, which is a messaging application that people and companies use to communicate privately; Facebook Reality Labs, an augmented and virtual reality product that helps people feel connected, anytime, and anywhere.
Facebook is listed on the NASDAQ with the stock ticker FB.
If you’re thinking of investing in WhatsApp, you should look at the Facebook stock’s recent performance and future growth potential. You should also look at future product announcements, and other impacts on the markets Facebook operates to analyze if any information could impact Facebook’s stock adversely.
WhatsApp’s stock performance in recent years
Facebook stock has been performing well in the last five years. In April 2016, Facebook’s stock was trading at $110.63, and the current price as of April 2021 is $294.53. Although there was a dip in Facebook’s stock price because of the pandemic, the stock has rebounded quickly in a few months.
Buying, selling, and trading WhatsApp shares
Here are the differences between buying, selling, and trading WhatsApp shares.
Buying WhatsApp shares: Buying involves finding a broker and placing an order to buy Facebook stock. You would want to buy at a lower price to profit if the Facebook stock price goes up.
Selling WhatsApp shares: If you already hold Facebook stock, you can sell it for a profit if you’d like to. If the Facebook stock price has increased significantly since you purchased it and if the market conditions look favorable for selling, that is, if you expect the Facebook stock price to drop, you can sell Facebook shares and make a profit. Selling involves finding a broker and placing an order to sell Facebook shares.
Trading WhatsApp shares: Trading WhatsApp stock via Facebook shares is the same as buying and selling, but it is done over shorter periods. With trading, the goal is to make smaller profits quickly. You also run the risk of making losses rapidly as well. If you’re a new investor, we recommend buying and holding your investment in Facebook for a more extended period, i.e., six months to a year or more.
Steps to follow before investing in WhatsApp stock
1. Understand how the stock market works
If you want to invest in Facebook stock, you should understand how the stock market works. You should not panic when your investment in Facebook stock goes down or buy in a frenzy when Facebook stock trades high.
2. Research the Facebook stock
As an investor, it is a good idea to buy stocks in companies that you’re already familiar with and know well. If you are already using Facebooks’ products and trust the Facebook brand, you can buy Facebook’s shares. Before you buy WhatsApp stock via Facebook shares, you should take steps to research the Facebook stock and its fundamentals.
You should look at where Facebook gets its revenue from, how its growth looks like, and what its plans are. Most of this information will be available in Facebooks’s annual report in the annual letter to shareholders. This letter will share the essential updates in the business. The Facebook SEC filings, Facebook conference call transcripts, Facebook quarterly earnings updates, and recent news about Facebook are good sources of information to analyze the company.
The more analysis you do and the more information you have, you will make more intelligent decisions about investing in Facebook’s stock.
3. Examine broader market conditions
You should also look at broader market conditions before you buy Facebook stock. If it is a bull market, the Facebook share price will go up, and it would make sense to buy Whatsapp shares via Facebook stock immediately. If it is a bear market, the Facebook share price will go down, and it might be better to wait to buy Facebook shares at a lower price.
How to buy WhatsApp stock – a step by step guide
Buying WhatsApp stock via Facebook stock is a simple process, even for new investors. If you’re thinking of buying Facebook stock, you must decide whether you want to buy the Facebook stock for the short term or the long term. If you’re going to invest in Facebook shares in the short term, you should perform a technical analysis of the Facebook stock.
If you want to hold Facebook stock for the longer term, you should perform a fundamental analysis of Facebook. You should also keep yourself updated with news and with developments of Facebook. Here are the steps you need to follow.
1. Select a broker
To buy Facebook stock online, you will need to use an online brokerage platform. Our broker reviews can help you select from the best brokers for stock trading. In general, you should look at the following parameters before selecting a stockbroker.
- Stocks available for trading: The first criteria for selecting the broker is that you should be able to use the broker to trade the stocks you’re interested in, namely Facebook shares.
- Commissions charged: Some brokers charge a higher commission, so if you want to maximize your profits, you would want to choose a broker with lower commissions.
- Account fees: You should also watch out for other fees such as annual fees, inactivity fees, trading platform subscription fees, and fees for research or data. Brokers will also charge a fee for transferring cash or investments or for closing your account. You can avoid many of the fees by choosing a broker that doesn’t charge fees or by opting out of services that cost extra.
- Payment methods: Some brokers are more flexible in their payment methods than others. If you want flexibility in payments while buying Facebook shares, this should be one of your criteria.
- Track record: You should choose a broker based on their track record. The broker that you choose should have a track record of reliability, and they should have been around for a while and have good reviews online.
Our broker reviews can help you select from the best brokers for stock trading. Here are the best stock brokers of 2021.
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2. Open a brokerage account
This is the account in which your shares will be stored. Opening a brokerage account has become very simple. The steps vary from platform to platform, but you should be good to create your account once you provide your details and some form of identification. Again, the time taken to open an account varies between platforms.
3. Fund your brokerage account
The next step is to log in to your account and deposit money in your brokerage account. Most brokers accept bank and debit card transfers, and some accept transfers through other methods such as Paypal.
4. Decide how many WhatsApp shares you want to buy
If you’re a new investor, you could start small with a small amount and gradually increase your investment as you get more experienced in the stock market. You can also think about investing in fractional shares, which certain brokers offer. Buying a fractional share means you are purchasing a portion of the WhatsApp stock via Facebook stock instead of the whole stock. If the Facebook share is too pricey, you can opt to buy a fractional share in Facebook.
5. Choose your stock order type
All you have to do now is search for the FB ticker, specify the number of Facebook shares, choose your order type and click on buy. Once you place your order, your broker will execute the order, and the Facebook shares will be listed in your account.
There are different order types you can place. Let’s look at the most commonly used ones, the market order and the limit order.
The market order instructs your broker to place an order for the Facebook stock at the prevailing market price. There are no price parameter restrictions on this order. You should use this order type for stocks that don’t experience wide price swings, generally larger company stocks. Stock prices can vary between seconds.
If a small price fluctuation does not matter to you, you should place a market order. If you place a market order trade “after hours,” when the markets have closed for the day, your trade will get executed the next day at the prevailing market price.
The limit order instructs your broker to place an order when the Facebook stock reaches a specific price point. It gives you control over the price at which your trade is executed. For example, if Facebook stock is trading at $200, but you value Facebook at $180, the limit order tells your broker to wait till the Facebook stock price reaches $180. Limit orders are suitable for smaller company stocks that experience wide price swings.
6. Review your position periodically
Once you have purchased Facebook stock, you should monitor the stock according to your investment strategy. You should follow the Facebooks’s quarterly and annual results and the news and developments in Facebook.
Investing always comes with certain risks. You can reduce risks by diversifying your portfolio and by avoiding scams by choosing a reliable broker. To recap, you can buy WhatsApp stock via Facebook by selecting a broker, opening a brokerage account, depositing money in your brokerage account, placing an order for Facebook stock, and reviewing your position in Facebook periodically.