News Digest / Guides / How to Invest in WhatsApp Stock?

How to Invest in WhatsApp Stock?

Alex Vellor
05:51am, Friday, May 31, 2024
Photo by Dimitri Karastelev on Unsplash

WhatsApp is one of the most widely used instant messaging apps globally. Since its acquisition by Meta Platforms (formerly Facebook) in 2014, direct investment in WhatsApp itself has not been possible. However, this opens an exciting opportunity for investors. Those looking to diversify their portfolios in the dynamic social media market can purchase Meta Platforms (NASDAQ: META) stock and indirectly invest in WhatsApp and other highly popular social media services such as Instagram and Facebook. 

Meta Platforms Overview in 2024:

According to Statista, as of 2024, WhatsApp has surpassed 2.78 billion users worldwide and is projected to exceed 3.14 billion by 2025. WhatsApp holds the title of the most popular messaging app, boasting approximately 3.03 billion active monthly users, as reported by Bankmycell. This figure is just slightly below that of the second most popular app, Facebook Messenger, which also belongs to the Meta Platforms.

Market Cap 1.203T
P/E Ratio 25.98
Beta 1.21
PEG 0.97
Sales 142.71B
Income 45.76B

Meta Platforms, Inc. was incorporated in 2004 and is headquartered in Menlo Park, California.

To start investing, you’ll need a brokerage account. There are numerous brokerage companies available, each varying in terms of commission fees, the range of markets for investing, platform complexity, and the ease of opening an account. If you decide to invest in WhatsApp by purchasing shares of its parent company, Meta, here’s our simple 5-step guide to help you get started:

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Step 1: Open A Brokerage Account

A brokerage account is an investment account that allows you to buy and sell a variety of investments, such as stocks, bonds, mutual funds, and ETFs.

To make the right choice, you should compare the fees, terms, and how intuitive you find the platform and the brokerage company’s overall concept.

Using eToro as an example, we will show how you can open such an account:

Step Description
1 Register your account here. Registration is free, after it, it is not necessary to start investing immediately. You can first use this account to practice with a virtual portfolio eToro demo account.
2 Provide your personal details, such as your name, email address, and a password for your account.
3 Verify your email address by clicking on the link sent to you in an email from eToro.
4 Enter additional information, including your date of birth, address, and phone number.
5 Upload a copy of your government-issued ID (such as a passport or driver's license) and a proof of address (such as a utility bill or bank statement) to verify your identity.
6 Fund your account using a variety of payment methods, such as credit/debit cards, bank transfer, or e-wallets.

Step 2. Conduct Your Own Research to Develop a Strategy

After deciding where to buy Meta Platforms, Inc. (NASDAQ: META) stocks, the next step is researching the company.

This step is necessary to understand whether this company fits your financial goals. For such research to give good results, following questions should be considered:

  • What is the company's history, and how has it performed in the past?
  • What are the risks associated with investing in the company?
  • How does the company compare to its competitors?
  • What is the company's strategy for growth?

To find answers, check the company's annual and quarterly reports, balance sheets, income statements.

It’s crucial to consider other factors like industry trends, competition, management, and macroeconomic conditions when making investment decisions.

Additionally, while it’s helpful to review analysts’ opinions about the company, keep in mind that predicting the exact future price is impossible due to numerous variables. Remember to stay updated with the latest news and pay attention to what other investors are saying about the company.

Photo by Bastian Riccardi on Unsplash

Step 3. Decide How Much to Invest and Assess Your Risk Tolerance

To understand how much you want to invest, you must analyse your financial possibilities:

Time horizon: This is the period an investor plans to hold an investment—short-term (less than a year), medium-term (one to five years), or long-term (more than five years). It affects risk levels and expected returns.

Risk tolerance: This measures how much risk an investor is willing to take. Some prefer high-risk for higher returns, while others choose low-risk to preserve capital. It’s influenced by financial situation, goals, and personal preferences.

Goals: These are the objectives an investor aims to achieve, such as building wealth, generating income, preserving capital, or specific plans like saving for retirement or education. Clear goals help in making better investment decisions.

Before choosing the investment amount and frequency of contributions, ensure you have an emergency fund covering 3-6 months of living expenses and a budget for your investing strategy. It is vital to be ready emotionally as well. A "cold head" is the best helper.

Step 4. Place An Order

Once you have determined how much you want to invest in META stock, you can place your order to buy it.

You have two types of orders to choose from:

  1. Limit order: A limit order is an order to buy or sell stocks at a specified price or better. When you place a limit order, you are essentially setting a "limit" on the price you are willing to pay (or receive) for the stocks. Limit orders can be helpful for investors who want to be more precise about the price at which they buy or sell a stock and who are willing to wait for a specific price to be reached.
  2. Market order: A market order is an order to buy or sell stocks at the current market price. When you place a market order, you are telling your broker to execute the trade at whatever the current market price is, which may not be the same price you saw when you decided to place the order. Market orders are typically executed quickly and are often used when investors want to buy or sell stocks speedily and want to take advantage of a good opportunity.

It's important to understand each type of order's risks and potential benefits before placing an order and to consider factors such as the current market conditions and the volatility of the stock you are interested in.

Step 5. Regularly Monitor Your Portfolio and Set a Stop-Loss

When investing in the stock market, it’s important to monitor your investments regularly and set a stop-loss to protect your portfolio.

Monitoring keeps you informed about performance and helps adjust your strategy, while a stop-loss order limits losses by selling a stock if it falls below a certain price.

Avoid overreacting to short-term market fluctuations, as stocks can experience dips before rebounding. Regularly review your investment strategy to ensure it aligns with your goals and risk tolerance, adjusting as needed. Understand potential risks, including market, credit, liquidity, diversification, emotional, and company-specific risks, and manage them through informed decisions and diversification.

If you want to gain practical trading experience and improve your investment strategies, consider opening a demo account. This feature provides a risk-free way to practice trading and test different investment strategies using virtual money.

For instance, with eToro's demo account, you can experience real stock market conditions and familiarize yourself with the platform's features without putting any actual funds at risk. It's an excellent tool for investors of all levels to gain confidence in their trading abilities and experiment with different investment techniques.

Start Your Journey With:
eToro
0% Commission Stock Trading*.
Free Insurance of up to 1 Million.
Regulated by FCA, ASIC, and CySEC.
30 million users worldwide and more than 5,000 instruments.
20 global stock exchanges and 100 cryptocurrencies to choose from.
Get Started
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. * - Additional fees apply. For more details, visit https://etoro.com/trading/fees

About The Author

Alex Vellor

Start Your Journey With:
eToro
0% Commission Stock Trading
Free Insurance of up to 1 Million
Regulated By FCA, ASIC & CySEC
Social Trading
Ability to Copy Experienced Traders
Your capital is at risk

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