Brief Overview of Meta Stocks:
In the world of stock market, there are three main types of stocks – Equity, Debt and Gold. Equity shares give the owners of company a chance to own something. They can control the company’s activities and make decisions on its management.
Debt shares are usually bought by the banks or financial companies that need to borrow money from other banks or financial companies for managing their business. Companies will often borrow money from other companies to invest in their projects or expand their businesses. Gold stocks are mostly bought by people who want to store money in gold for long period of time.
The price of each type of stock depends on number and type of shareholders, so it is important not to confuse these three different types with each other.
The popularity of Facebook is growing over USA, Canada and Europe due to its strong social media presence as well as global reach through its messaging app WhatsApp. It has become one of the world’s most valuable brands due to its vast user base which includes 1 billion active users every month (Facebook).
The value of Facebook is rising between $197 billion and $223 billion every year; all this value is generated by money made from advertising revenue (Facebook).
It’s a multi-billion dollar business, so Facebook needs a stable source that can earn enough income from advertising, so it decided to buy WhatsApp for $19 billion ($1 billion per year) in 2014 . Now that WhatsApp has been acquired by Facebook for over $19 billion , we can expect more amazing things from this legendary brand!
You can predict the price of any stock based on its historical share price. In this article, I will explain how you can do it.
In a recent study, researchers found that stock prices are much more volatile than we would expect. That is to say, the percentage of change in a company’s share price over the last two years is so high that most people wouldn’t be able to figure them out by just reading the numbers.
This is because they are based on the share prices of publicly traded companies and the reasons why they changed their share price has little to do with what happens on the balance sheet (such as earnings, sales, or cash flow).
But instead has everything to do with what people think about a company’s leadership (which is more sensitive to changes in public opinion).
Facebook share price is the market value of Facebook’s outstanding shares. Since the IPO in May 2012, the stock has gained over 5,000% and is now listed at a market value of over $150 billion. The stock is also freely traded on Nasdaq. According to Wikipedia, one share of Facebook stock is equal to 5 cents.
Every time a company announces its earnings, it makes a bet on the direction of the stock price by multiplying its revenue by a multiple (think of this as money “invested” into the company to make improvements).
For example, if Facebook announced that it made $3 billion in revenue last quarter and had an operating margin of 12%, then every time they announce their earnings, they are betting that their stock price will increase based on those numbers.
In addition to those numbers, investors also keep track of other vital metrics such as guidance and cash flow, which influence how investors view the company’s performance.
However, because these numbers are all fluctuating variables that can change minute-by-minute based on what happened in previous quarters and on what happens next year or so, it’s hard for investors to really take all this information into account when making decisions about where a company should invest their money.
To be more concrete: if you are an investor who owns shares in Facebook and choose not to sell them for any reason whatsoever (regardless of whether you expect them to go up or down), then your decision about where to put your money will be influenced by whether or not you think Facebook will be able to grow its active user base and/or convert more users from mobile devices into desktop ones by adding new features such as Messenger and Instagram over time.
By investing in Facebook stock through no fault of your own (and even though it might not go up), you are betting that Facebook can meet those goals through growth rather than shrinking them by adding features like Snapchat Stories or Instagram Stories — which would be terrible news for investors who want that growth.
What does all this mean?
When I say that “Facebook share prices are flexible and spinning over news”, I mean that there is no clear guideline what will happen with Facebook share prices.
Since we don’t know exactly how much revenue Facebook has been generating each quarter; we don’t know how many users they have; we don’t know how many ads they have sold; we can never know exactly how much money.