1. Consistent user growth implies better ad revenue & profits for FB.
2. Impressive revenue growth: 22% year over year.
3. Growth in earnings per share: $2.71 from $2.12.
4. The launch of Oculus Quest 2 VR headset.
5. Growth of WhatsApp & Instagram.
6. Foray into international markets with investments in Reliance Jio and others.
*Note: The facts & figures above are from publicly available data on Google. Data used: 1 FB share price in 2012: $38; 2021: $278. USD to INR in 2012: ₹52; 2021: ₹73.
Cons of Buying Facebook Stock
1. Negative media attention.
2. Data breach concerns.
3. Little to no growth in DAUs in the US & Canada.
Why Is Facebook Stock Falling?
The FB stock has lost as much as $11 in value since 04-10-2021 while Mark Zuckerberg’s (CEO & Founder of Facebook) net worth has dropped by a whopping $6 billion.
Analysts point to the worldwide service outage that Facebook, Instagram, and WhatsApp experienced along with allegations from a whistleblower. Let’s look at these factors in-depth.
1. Facebook, Instagram, WhatsApp Outage
Facebook, Instagram, and WhatsApp all failing at the same time on 04-10-2021 came as a surprise to everyone, including the staff that work at the respective companies.
The situation was nothing short of terrible as the outage could not be fixed by Facebook’s engineers remotely. Furthermore, FB’s internal systems (emails, asynchronous communication software) were also down.
That’s why Facebook’s spokesperson resorted to communicating on Twitter to ease the tension. Finally, a team of engineers had to travel to a data centre to fix the servers old school style.
By 6 PM (EST), close to 7 hours after the outage, Facebook and Instagram were slowly reloading. Experts suggest that the outage was caused because the internet couldn’t find facebook dot com & instagram dot com.
2. Misinformation Allegations
An ex-Data Scientist who was on the Facebook team took to a national television show to make certain allegations regarding the social media company.
Frances Haugen revealed that Facebook allegedly deceived its investors by extending the truth behind how it handles misinformation and hate speech on the Facebook platform.
Mr Haugen is seeking whistleblower protection from the SEC before appearing in court to testify against his former employer. He has also submitted several documents to The Wall Street Journal.
These documents went on to become a crucial part of the Facebook Files series that WSJ ran. Thus, investors must speak to a reliable financial advisor before investing in the FB stock due to ongoing issues.
How To Buy Facebook Stock From India?
There are two ways to buy Facebook stock from India, direct and indirect.
1. Brokerage Apps
This is the direct method of buying FB stock from India. There are several US brokerage apps like Cube that allow you to add FB stock to your portfolio.
You'll have to go through a KYC process and the LRS process to transfer money to your US brokerage account and buy FB stock. The RBI's LRS allows you to invest up to $250,000 in US stocks per financial year.
Some apps like Cube allow you to access US stock advice that you can use to understand whether you should invest in FB stock.
2. Mutual Funds
International mutual funds offer an indirect way of adding Facebook stock to your portfolio. They are Indian equity funds that invest in the shares of foreign companies, mutual funds, and ETFs.
Cube gives you access to two such international mutual funds that have FB stock in their portfolio:
Franklin India Feeder - Franklin U.S. Opportunities Fund
Motilal Oswal S&P 500 Index Fund
The best part? There's no upper limit to the amount you can invest in these mutual funds as long as they're suitable for your risk profile and financial goals.
Facebook continues to be the #1 social media website across the globe and rules the roost even though there are multiple social media platforms that offer a host of benefits & features today.
In fact, Facebook dwarfs its main competitors like Twitter in terms of both active users (2.7 billion Vs 310 million) and market capitalization ($794 billion Vs $31 billion).
The historical growth of FB stocks suggests that it can give potentially high returns over the long term. But whether or not you should invest in it depends on factors such as your risk appetite, investment goals, financial health, and more.
*Note: All facts & figures are as of 05-10-2021. While we update our blogs regularly, check out the Cube Wealth app for detailed facts & figures.
1. How can I buy Facebook stock?
Ans. The best way to buy FB stock from India is by using a reliable app like Cube Wealth. You can buy US stocks of companies like Facebook, Apple, Amazon, Tesla, etc. on your own (DIY) or with advice from RIA, Rick Holbrook. The best part? You can invest as little as $1 in FB stock using Cube Wealth!
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