Yes, it is possible to buy just 1 share of Facebook stock. There is no minimum number of shares you need to purchase to invest in Facebook.
What are the requirements to buy 1 share of Facebook stock?
The requirements to buy 1 share of Facebook stock are:
- Have a brokerage account
- Have enough funds to cover the share price plus any trade commission
Let’s expand on each of these requirements:
Have a brokerage account
To buy stocks like Facebook, you need to have a brokerage account. Some popular brokers include:
- Fidelity
- Charles Schwab
- TD Ameritrade
- E*Trade
- Robinhood
Opening a brokerage account is free at most brokers. All you need to do is provide some personal information and sign up online or on their mobile app.
Have enough funds to cover the share price plus any trade commission
The current price for 1 share of Facebook is around $150 (as of October 2022). So you would need at least $150 in your brokerage account to cover the share price.
Additionally, your broker may charge a trading commission when you buy or sell stocks. This is usually a flat fee that ranges from $0 – $10 per trade at most major brokers.
So make sure you have enough cash in your brokerage account to cover the share price of $150 plus any trading commission your broker may charge.
How do you actually buy 1 share of Facebook?
Once you have a brokerage account funded with cash, the process to buy 1 share of Facebook is simple:
- Log into your brokerage account online or via mobile app
- Search for the stock ticker symbol “FB” to look up Facebook
- Enter “1” for the number of shares you want to buy
- Review and submit your trade
And that’s it! The share of Facebook will be purchased at the current market price and added to your brokerage account.
What are the pros and cons of buying 1 share of Facebook?
Pros:
- Low barriers to entry – You only need ~$150 to buy 1 share, versus much higher amounts needed to buy more shares
- Diversification – Owning just 1 share allows you to add Facebook to a diversified portfolio
- Potential for upside – If Facebook’s share price increases over time, you will benefit
- Can buy more later – Easy to buy more shares at any time in the future as you get more investing funds
Cons:
- Small position size – 1 share is a very small overall stake in the company
- High percentage fees – Trading commissions could be a significant percent of your investment when only buying 1 share
- Lack of voting rights – With just 1 share you have essentially no voting rights in corporate decisions
Should you buy just 1 share of Facebook?
Whether buying 1 share of Facebook is a good idea for you depends on your unique situation and investment goals. Here are some things to consider:
Just starting out
For beginner investors or those with limited funds, buying 1 Facebook share can be a good way to get your feet wet and own a piece of a major company.
Part of a diversified portfolio
Owning shares of Facebook can provide tech and social media exposure to complement other stocks and funds you own for a diversified portfolio.
Long-term, buy and hold strategy
If you have a longer-term investing horizon and plan to hold onto the stock, buying 1 share now makes it easy to add to your position over time.
Active trading, short-term bets
Frequent traders may want to buy larger share amounts. Otherwise, trading commissions will quickly eat into profits from a 1 share position.
Speculation and betting on volatility
If you’re just looking to speculate on Facebook’s share price in the near term, smaller position sizes help limit your overall risk exposure.
Key takeaways on buying 1 share of Facebook
Here are the key points to remember:
- You can absolutely purchase just 1 share of Facebook if you want to own the stock
- Minimum to invest is around $150 for the share price plus any trading commission
- Consider how 1 share fits into your overall investing strategy and portfolio
- Dollar cost average by adding additional shares over time
How much is one share of Facebook worth?
Here is a look at the current and historical share price of Facebook (FB) over the last decade:
| Year | Share Price |
|---|---|
| 2022 | $147 |
| 2021 | $339 |
| 2020 | $273 |
| 2019 | $205 |
| 2018 | $154 |
| 2017 | $176 |
| 2016 | $118 |
| 2015 | $104 |
| 2014 | $78 |
| 2013 | $54 |
| 2012 | $27 |
| 2011 | $30 |
As you can see, Facebook’s share price has risen over the last decade from around $30/share in 2011 to around $150/share today. However, the price can fluctuate significantly year-to-year based on company performance, broader economic conditions, investor sentiment, and other factors.
What percentage of Facebook can you buy with $150?
With $150, here is the percentage of Facebook you could buy at different share prices:
| Share Price | Shares Buyable with $150 | Percent Ownership |
|---|---|---|
| $100 | 1.5 shares | 0.0000006% |
| $125 | 1.2 shares | 0.0000005% |
| $150 | 1 share | 0.0000004% |
| $200 | 0.75 shares | 0.0000003% |
| $300 | 0.5 shares | 0.0000002% |
As you can see, with Facebook having around 2.85 billion shares outstanding, owning 1 share results in owning around 0.0000004% of the company.
While the percentage ownership may seem small, owning shares allows you to benefit as Facebook grows over time.
Should you buy fractional shares instead of 1 whole share?
Some brokers now allow you to buy fractional shares, which means you can buy a portion of a share instead of having to buy whole shares.
There are pros and cons to buying fractional shares versus 1 whole share:
Pros of Fractional Shares
- More flexibility – Can tailor your investment amount to any dollar value
- Lower barriers to entry – Don’t need enough for a full share
- Can invest fixed dollar amounts – Set recurring buys for same $ value each per month
Cons of Fractional Shares
- No voting rights – Can’t vote proxies with less than 1 share
- Can’t transfer – Fractional shares often can’t be transferred to another broker
- Spread pricing – Spreads on fractional shares may be wider
Pros of Whole Shares
- Full voting rights – Can vote proxies with whole shares
- Full ownership – Owning whole shares means full ownership
- Transferrable – Typically easy to transfer whole share holdings
Cons of Whole Shares
- Higher initial investment – Need enough funds for 1 full share upfront
- Less flexibility – Can only buy in whole share increments
- Difficult to invest fixed $ – Recurring dollar amounts may buy partial shares
In summary, fractional shares allow you more flexibility and lower initial investments, while whole shares provide full ownership rights and transferability. Consider your specific needs and account features when deciding between fractional vs whole shares.
Key factors that drive Facebook’s share price
Some of the key fundamental factors that impact Facebook’s share price include:
User growth and engagement
Facebook’s stock price is tied closely to the growth in its user base across its family of apps like Facebook, Instagram, WhatsApp, and Messenger. If user growth decelerates or engagement drops, it can negatively impact the stock.
Advertising revenue
Facebook makes most of its money through advertising. Changes in marketers’ ad spending on the platform and competition from other digital ads channels can affect Facebook’s revenue growth.
Profit margins
Facebook generates strong profit margins thanks to its massive scale and digital advertising model. Declining margins over time could signal trouble and hurt investor confidence.
Regulatory threats
As a huge tech company, Facebook constantly faces regulatory risk from governments across the world related to issues like privacy, elections, content moderation, and antitrust. Major regulatory actions could impact operations and profitability.
Management execution
Mark Zuckerberg exerts great influence over Facebook as majority shareholder and CEO. Investors analyze how well he and other executives navigate challenges and opportunities. Poor execution can cause loss of confidence.
Market sentiment
Broader investor sentiment towards tech stocks, growth stocks, and the stock market in general also impacts Facebook’s share price and valuation multiples.
Technical analysis factors
In addition to fundamental factors, Facebook’s stock price is also driven by technical factors and stock chart patterns watched closely by short-term traders:
Price action
Traders look at trends in Facebook’s price movements to analyze momentum, support and resistance levels, trends, and chart patterns. Breakouts or breakdowns from ranges trigger additional buying or selling activity.
Volume
Higher trading volume on increases or decreases in Facebook’s stock indicates broader directional conviction in the price action. Low volume rallies or sell-offs are often viewed as less durable.
Moving averages
Traders use moving averages like the 50-day and 200-day lines to identify bullish or bearish trends in the stock. The relationship of the price to key moving averages guides trading decisions.
Indicator signals
Oscillators like RSI, MACD, and stochastics help assess overbought or oversold conditions and momentum swings in Facebook’s price action over different timeframes.
Fibonacci levels
Key Fibonacci levels based on previous rallies or sell-offs are watched as potential support or resistance, as well as profit targets. Many short-term traders adhere closely to Fibonacci retracements.
Is now a good time to buy Facebook stock?
Determining if now is a good time to buy Facebook stock depends on your individual investing strategy, time horizon, and risk tolerance. However, here are some factors to consider:
Valuation
Facebook currently trades at a P/E ratio of around 14x earnings. This is well below its 5-year average P/E of 25x, suggesting potential undervaluation.
Growth Outlook
Despite economic uncertainty, Facebook is projected to grow revenue around 13% in 2023. While slower than past years, 13% is still solid growth.
Technical Picture
Facebook’s stock appears oversold based on the RSI oscillator and is finding support at the $130 level after sharp declines in 2022. The risk/reward looks favorable for long-term buyers.
Macroeconomic Conditions
If inflation continues to ease and the Fed pivots to less aggressive rate hikes, beaten down growth stocks like Facebook could rally from current lows.
Competitive Position
Facebook retains strong competitive advantages in social media, messaging, and targeted digital ads compared to platforms like Snapchat and TikTok.
Conclusion
In summary, while there are always risks, the bullish case for Facebook at current levels includes an attractive valuation, strong core business fundamentals, favorable technical setup, and potential for outperformance if macro conditions improve. For long-term investors, now may be an opportune time to buy the dip in Facebook stock. As always, proper position sizing and risk management is key.