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Over a typical month, 13 million Australians use the social media platform Facebook. However, Facebook is more than just a popular internet platform – it is actually one of the largest technology companies in the world. Here’s how you can own a share in this tech behemoth.
What is Facebook?
Facebook is the leader in the social networking space, especially after they acquired Instagram and popular messaging app, WhatsApp. However, Facebook has also diversified its business into other areas such as gaming and cryptocurrency, with the acquisition of Oculus (a VR system) and the launch of Workplace by Facebook, Portal and Portal, and more recently Novi. At the time of writing, Facebook is worth a cool US$1.21 trillion.
How have Facebook stocks performed?
Facebook held its initial public offering in May 2012, and launched onto the stock market with a share price of US$38.23. At the time of writing, a single share is worth over US$370. While for the most part Facebook’s share price has risen steadily, it has experienced some notable dives, particularly in 2020 amid the height of the COVID-19 pandemic. However, Facebook’s share price recovered relatively quickly and is now sitting at an all-time high.
How to buy Facebook shares in Australia
Facebook trades on the NASDAQ stock exchange under the stock ticker FB. To access Facebook shares you’ll need to find a broker that allows you to trade on the NASDAQ. There are several brokers in Australia that provide access to international shares such as Facebook. When comparing online share trading brokers you should consider the fees, functions and whether the platform is easy to use.
Related article: How to buy US stocks in Australia
Should I invest in international shares?
There are plenty of benefits to investing overseas, including access to some of the largest companies in the world, like Facebook, and the ability to diversify your portfolio. Another advantage is the cyclical patterns of overseas markets that, at times, move in the opposite direction of the Aussie share market which can help smooth out your returns. There are a few downsides to be aware of as well, such as the currency exchange fees, the different rules and regulations, Australian tax laws, and economic and political threats.
Related article: Risks and benefits of investing overseas.
If you are thinking of investing in Facebook you should first thoroughly research the company to ensure that it aligns with your investment goals and strategy. Also, bear in mind that past performance is not an indicator of future performance.
Cover image source: DenPhotos/Shutterstock.com
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