How to trade Meta stock: a complete guide

Learn all about Meta, with information on the company’s history and share price journey, its share trading hours, and how to trade Meta share CFDs with Capital.com.

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What is Meta?

Founded in 2004 by Mark Zuckerberg, Meta is one of the largest and most influential technology companies in the world. It was started as Facebook, a social networking platform to connect Harvard students, but soon expanded to other universities and eventually to the general public. The early development of the company saw new features and acquisitions, such as a news feed, photo sharing, and a Like button, and the 2012 purchase of photo sharing service Instagram, which further expanded its portfolio and influence.

After effectively monetising the offering and seeing exponential growth, Facebook surpassed 1 billion users in 2012 and listed in one of the largest tech IPOs in history the same year. Trading under the ticker symbol META, the company’s share price journey has been dynamic, with significant price growth since its flotation. While a torrid 2022 caused a severe bearish run, the stock recovered strongly in 2023 and 2024.

In the 2023 fiscal year, the company’s revenue amounted to around $134bn.

What is Meta’s share price history?

Meta’s share price history has seen significant shifts since its IPO in 2012, when it offered shares at $38, valuing the company at more than $100 billion. In the early years of its listing, the share price made steady progress as mobile advertising efforts boosted revenue and profitability, and the company successfully demonstrated an ability to monetise its burgeoning userbase.

However, in 2018 the company’s fortunes changed as political consulting firm Cambridge Analytica was found to have improperly harvested data from millions of Facebook users without their consent. The resulting question marks over Facebook’s data privacy practices saw a mass sell-off of shares, and slowing user growth figures and ad revenue growth added to concerns.

The stock made a strong recovery in the following year, though. The shift to remote work, online shopping and digital entertainment during the Covid-19 pandemic assisted a surge in digital advertising as Facebook’s clients were able to reach a highly engaged audience.

2022 however marked another brutal downturn for the stock following the company’s rebrand to Meta. A fresh focus on the 3D virtual metaverse world, the development of which cost tens of billions of dollars, failed to enthuse investors, particularly as focus was taken away from more proven strategies. That year, the share price fell from around $330 to as low as $90.

But another recovery was imminent. In 2023, strong performance in the online commerce, consumer packaged goods, entertainment and media and gaming verticals contributed to strong revenue growth and renewed investor confidence, which extended into 2024.

*Meta stock price data from Macrotrends. Correct as of 27 March 2024. Historical price data is inclusive of the effect of stock splits.

(Past performance is not a reliable indicator of future results)

What factors might affect the Meta live share price?

Meta’s share price can be impacted by a range of key sector-specific fundamental events. Here are a few of the main factors that traders should watch out for.

• User growth and engagement: Meta's strong performance relies on the number of active users on its platforms and how engaged they are. Therefore, you should be cognisant of changes in user growth rates, user demographics, and user behaviour, all of which can significantly impact investor sentiment and, consequently, the share price.
• Advertising revenue: among Meta’s sources of revenue, advertising income is critical. Revenue performance here can be affected by changes in advertising policies, effectiveness of ad targeting algorithms, competition from other advertising platforms, and overall economic conditions.
• General financial performance/earnings reports: Meta's financial position, including sales performance, profitability, and margins, is a key factor that can influence its share price at any given time. Meta’s earnings report is usually one of the most eagerly-awaited during the wider quarterly earnings season, and financial guidance along with market analysis during this key period can help you understand progress and future outlook. Positive financial results and strong growth prospects, particularly if above estimates, support Meta's stock price, while disappointing earnings or guidance may lead to share price declines.
• Competition/market share: Meta faces intense competition from other technology companies in various markets, including social media, messaging, virtual reality, and digital advertising. To this end, you should assess Meta's competitive position relative to companies like Google, Twitter, Snapchat, TikTok, and others, if trading this stock.
• Innovation and product development: Meta's ability to innovate and develop new products and features that attract and retain users is crucial for its long-term growth. For example, in the early 2010s the company capitalised on the shift to mobile advertising, serving mobile-friendly ad formats and developing new targeting capabilities, bolstering revenues and encouraging investors. It’s advisable to keep an eye on the company's ongoing investments in research and development, as well as its ability to adapt to changing consumer preferences and technological trends.
• Regulatory environment: Regulatory scrutiny and changes in privacy laws can have a significant impact on Meta's business operations and financial performance. Concerns over data privacy, antitrust issues, content moderation, and government regulations can lead to increased volatility in the stock price.

What are Meta’s stock trading hours?

Meta’s stock trading hours are Monday to Friday from 2:30pm to 9:00pm (UK time) based on its listing on the Nasdaq Stock Market.

If you choose to trade CFDs, you can follow the Meta stock performance live in US dollars with the comprehensive Meta share price chart.

Monitoring the company’s activity can help you to keep an eye out for any key fundamental or technical events that may affect short-term movements in the share value.

How to trade Meta shares with CFDs

If you want to take a position on Meta shares, you have two options. First, you can buy physical shares in the company through the exchange on which it’s listed. In this case, investing in Meta stocks means you will own a share, or shares, in the company. This can be considered a long-term investment, as you’re hoping for the price to rise over time.

Alternatively, you can trade a derivative product such as a contract for difference (CFD) on the underlying Meta stock market price, and speculate on its price movements without actually owning the asset. A CFD is a financial contract, typically between a broker and a trader, where one party agrees to pay the other the difference in the value of a security, between the opening and closing of the trade.

Unlike physical share ownership, you can either hold a long position (speculating that the price will rise) or a short position (speculating that the price will fall). This is considered a short-term investment or trade, as CFDs tend to be used within shorter timeframes.

Another key difference between buying physical Meta shares and trading through a derivative is the leverage that can be employed with the latter. CFDs are typically traded on margin, which means that a trader has exposure to larger positions with a relatively small outlay. Using this method, both your profits and losses are amplified, making leveraged trading risky. You can learn how to trade shares in our comprehensive guide to shares trading.

To trade Meta stock CFDs with us, just sign up for a Capital.com account, and once you’re verified, you can use our advanced web platform or download our intuitive yet easy-to-use app. It’ll take just a few minutes to get started and access the world’s most-traded markets.

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Why trade Meta CFDs with Capital.com

Trading CFDs with Capital.com means you’ll enjoy an intuitive, supremely easy-to-use platform, 24/7 support, fair and transparent pricing, along with award-winning education to help build your experience in the markets.* You can seamlessly integrate our smart platform with elite third-party software TradingView and MT4, and refine your strategies with our risk-free demo.

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