How To Buy Whatsapp Stock: WhatsApp Messenger is one of the most popular social media platforms on the planet, with over 1.5 billion monthly active users.
In fact, it’s number one among mobile messenger platforms, and second only to YouTube (2 billion) and Facebook (1.69 billion) among social networks. It became so popular so fast that Facebook (FB) bought WhatsApp in February 2014 for an estimated $20 billion, making it the 7th largest tech acquisition of all time.
So why did Facebook do this, and how can you benefit from the decision?
This guide will tell you everything you need to know about investing in WhatsApp.
WhatsUp with WhatsApp?
You’ve likely heard the tale of a Silicon Valley company getting overvalued, from Yahoo’s $5.9 billion acquisition of Mark Cuban’s now-defunct Broadcast.com to the cryptocurrency ICO crashes in the late 2010s, tech stocks are notoriously overpriced.
When Facebook initially bid $16 billion for WhatsApp in 2013, it came at a time when the company already lost $138 million.
This immediately drew the world’s attention to WhatsApp, but it had over 200 million users already and was growing fast. By January 2015, it reached 700 million users. It was already the largest service of its kind.
WhatsApp features grew in the late 2010s to include audio and video, VoIP, and more. It’s even merging with Facebook Messenger and Instagram to create a combined messaging platform across all three apps. Facebook also integrated WhatsApp into its Crisis Response disaster communications feature that’s proven useful in past disasters.
In fact, let’s dive a little more into WhatsApp’s role in Facebook, as it’s important to understand when investing.
Is WhatsApp Stock A Buy?
You can’t buy WhatsApp stock without buying Facebook stock, so we’ll need to examine the whole package.
Facebook is, in the eyes of some, perched precariously in 2020, following CEO Mark Zuckerberg’s 2018 Congressional hearing on Russian involvement in the 2016 U.S. election cycle. The company is a mascot for consumer privacy issues in an election year.
Despite the assertion that social networks shouldn’t censor politicians and that fact checking political ads is impossible on Facebook, average citizens are being censored for sharing political memes. Many critics point to the obvious fact that spreading messages on Facebook is a pay-to-play environment.
In addition, Facebook is launching its Libra cryptocurrency in 2020 and has long been encouraging users to send each other money via its channels.
Political and market analysts are bearish on Facebook because of the regulatory messes it finds itself in the middle of. Both cryptocurrency and social media are hot-button topics among legislators and regulators. Its massive userbase puts a target on Facebook that will inevitably affect WhatsApp.
Facebook earnings are starting to slow too, although that’s relative – the company’s revenue grew 25% to $21.08 in the fourth quarter of 2019. The outlook for the next year is rocky for the company though.
What To Know Before Buying WhatsApp
Besides Facebook integration, the biggest advantage to WhatsApp is its userbase. There’s obviously overlap between users, but time spent in app and its used matters. For example, over 500 million people use WhatsApp daily, sending over 65 billion messages each day.
According to the company’s website, two billion minutes worth of audio and video calls are made in-app daily. The 55 million video calls along account for 340 minutes of that time. From May through July 2018 (the most recent period with data available), users spent 85 billion hours on WhatsApp.
This makes WhatsApp a powerful marketing and advertising platform. Even though it’s owned by Facebook, it could very well separate or be sold to another company in the event Facebook finds itself drowning in regulatory hot water.
If you choose to buy WhatsApp currently, you’ll need to buy Facebook stock. That is a public company that requires a stockbroker.
Open A Brokerage Account
A broker is a professional person or firm specializing in buying, selling, and trading assets. They are registered with all the top markets and can execute your orders. First, you’ll need to open an account.
Figure out which type of brokerage account is ideal for your personal situation. Each brokerage has different fee and pricing structures that can benefit or impede you, depending on your personal trading style.
Provide the proper documentation and fill out your application to get your account started. You’ll likely need a minimum deposit to fund the account. These can be as low as $100, and some new investment apps go even lower. Once you have the account funded, you’re ready to place a buy order for WhatsApp via Facebook stock.
Place A Buy WhatsApp Stock Order
As mentioned several times in this article, you can’t buy WhatsApp directly. You’ll need to place a buy order for Facebook. There several ways to do this, and each has different strategies involved.
Market Orders are the easiest trades, as you buy the stock immediately at its current price. The market has a variety of sell orders, and you’ll pick the first available at the posted price at the time of sale. This is the fastest way to buy a stock, and with something as big as Facebook, you’re almost guaranteed a confirmation within minutes.
Limit Orders differ in that you set a pre-defined price, which can be higher or lower than the current rate. Once the stock hits that price, your buy order will automatically go through. This is the most economical way to buy, but it can take days, months, or even years (if ever) for the transaction to go through.
Once you place the order, your brokerage will execute the trade. It’s that simple, but it can go wrong if you’re not informed. Check out Financhill’s stock analysis tools to learn more about an investment before spending your hard-earned cash.
The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.