Facebook is not to share or to like, it is to buy

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Perfect Choice For Beginners!
    Free Demo Account!
    Free Trading Education!
    Get Your Sing-Up Bonus Now!

  • Binomo
    Binomo

    Only For Experienced Traders!

How Facebook Is Using You to Annoy Your Friends (and How to Stop It)

You may also like

How to Make a Face Mask From a T-Shirt or Coffee Filter and Bandanna

5 TV Shows That Infamously Rushed Their Endings

‘OK, Boomer’ Girl’s Rise To Twitch Fame Was ‘A Perfect Storm’ Of Memes And Politics

Anker USB C Hub Adapter, 5-in-1 USB C Adapter, with 4K USB C to HDMI.

Duraflame

More from G/O Media

PlayStation 5 DualSense Controller Revealed

Everything Shown During Today’s Inside Xbox

Hawks’ Forbidden Love Results in a Rare Hybrid

Cruise Lines Are Getting Desperate

Daily tips, tricks & shortcuts delivered to your inbox.

Facebook is using you, whether you know it or not. Sometimes it’s obvious: you like a page, you click share, Facebook benefits. Other times, you have no clue until a friend asks you about a photo they saw that you liked. The unfortunate side-effect to all of this is that it can actually make you an unbearable annoyance to your friends, and you probably don’t even know it. Here’s how it works, and how to stop it.

When we talk about the ways that Facebook uses your personal information, we’re usually talking about why you should care about your privacy , or how Facebook tracks your activity . In this case, we’re discussing how your Facebook habits are used—with or without your knowledge—to bother your friends with ads that they associate with you. It’s a very different beast, but it can be stopped. Here’s what you need to know.

Why You Should Care About and Defend Your Privacy

Privacy is dead, right? Facebook knows everything about you, and the world is still turning.…

Anker USB C Hub Adapter, 5-in-1 USB C Adapter, with 4K USB C to HDMI.

EdgeRank: The Math Facebook Uses to Pimp Out Your Likes

You’ve probably seen an increase in posts in your news feed that say “[Your Friend] likes [Random Group]’s photo,” with the full photo and text of the group’s post right there, as though you liked the group yourself. On your phone or tablet, you’ve likely seen “Sponsored Posts” that say “[Another Friend] likes [Random Company]” with an invitation to like that page as well. It’s annoying to be sure, but you also likely know that your friend didn’t choose to advertise the page to you—it’s Facebook, using our habits to get likes and shares.

The logic that Facebook uses to decide what lands in your friends’ feeds is called “EdgeRank,” and it’s purposefully obscure—after all, if everyone understood it clearly (and lots of people claim to, but don’t), advertisers wouldn’t have to pay to promote posts, and users would be able to easily filter their feeds and block ads they don’t want to see. EdgeRank serves two purposes: For people who operate Facebook pages and manage brands, it’s the algorithm that decides whether your post gets out to as many of your fans as possible. For users, it’s the likelihood you’ll see something in your feed liked or shared by someone else. It’s also the math that governs why your news feed refuses to stay in real chronological order, even after you set it to “most recent.”

We’re not talking about your own status updates, photos, or anything you post to Facebook yourself—just the way you interact with other pages, groups, and people on Facebook. It’s one thing if your news feed is full of baby pictures from your old high school friends—it’s another thing when every post you like from a group you follow ends up in all of your friends’ news feeds without you knowing or being able to control who sees it.

Facebook Uses You to Help Pages and Brands Find Your Friends and Go Viral

The Problem: When you see a post in your news feed from a group you’ve never heard of, like a heartwarming photo or a campaign for a cause, you might assume it’s because your friend chose to share it with their followers by clicking the “share” button. That’s not the case: odds are they thought it was good, clicked Like, and moved on. A quick way to check is to visit their profile directly: if you don’t see the post there, then Facebook decided that you might like to see it too, not your friend.

This is annoying, but it’s especially problematic when you click like on something that may not be work-safe, assuming that “like” is not “share,” so “who’ll see it, right?” For example, one of my friends is a model: she’s attractive, and her photo shoots are often artsy, but it’s nothing you’d want your boss asking you about because they peeked over your shoulder at work. By “liking” her posts about her photo shoots, I run the risk of unintentionally sharing her photos with my Facebook friends, and having their bosses scold them for looking at scantily-clad model pics. See the problem? Unfortunately there’s no way out of this: Facebook doesn’t let you set the privacy level of something you’ve liked. If the original poster shared publicly, your like is public as well. Remember that if you’re a fan of any Facebook groups or pages that like to keep their posts in-group or close to pocket, or it may land in a friend’s news feed.

This is EdgeRank in action: it’s not sinister, it’s just Facebook deciding that your friends may have similar interests and may like what you like. The downside is that it populates your news feed with photos and updates from pages you may have no interest in, and does the same to your friends. We’ve shown you how to clean up your own feed , but how do you avoid cluttering up everyone else’s feed?

How to Make Facebook Infinitely Better with One Browser Extension

With each update, Facebook has gotten incrementally more cluttered, perplexing, and ornery—and I’m

The Solution: First, think before you click the Like button. There’s no way to determine which likes will be posted to which friends, so before you like that photo on one of your favorite pages, assume that it could be broadcast to all of your friends. Here are some other tips:

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Perfect Choice For Beginners!
    Free Demo Account!
    Free Trading Education!
    Get Your Sing-Up Bonus Now!

  • Binomo
    Binomo

    Only For Experienced Traders!

  • Hide those pages you like from your profile and set their posting rights to “only me.” In our tests, doing this hid the things we liked from those groups from other people’s feeds—but we can’t be 100% sure it’ll work for everyone.
  • Check your activity log. This is the only way to know which of your likes are public and which aren’t (Go to your profile, then click “Activity Log.”) You’ll see a history of every status update, photo, and shared item you’ve liked, along with an icon that’ll tell you whether it’s public or shared only with friends. Facebook usually doesn’t let you change the visibility of those entries, but you can “unlike” something if you don’t want it in someone else’s feed with your name plastered over it.
  • UseSocial Fixerto tame your own feed. You can use Social Fixer to trim down those types of re-liked posts in your own feed, removing the temptation to like them yourself. Still, this doesn’t stop Facebook from re-sharing groups you actually do like with your friends that don’t.

Facebook Uses Your Likes to Sponsor Brands, Cluttering Up Your Friends’ Feeds

The Problem: You’ve seen the ads before: Friend A, B, and C Like [Brand], with a Like button next to it. They’re right there in the middle of your news feed—sometimes there are two or three of them together in a big “sponsored” box. It’s annoying, especially when the brand in question isn’t even remotely interesting to you. Save your friends the hassle, and audit the brands and companies you like on Facebook.

The Solution: Unlike pages and brands that you don’t need an active relationship with, and don’t like new ones unless you need to. Save your friends the irritation of seeing “So-and-So Likes A Company You Couldn’t Care Less About!” every time they log in to Facebook and just remove brands you don’t feel like providing free advertising for.

Don’t get us wrong, lots of companies offer great customer service, discounts, and other incentives to like them on Facebook (we’d be lying if we said we didn’t want you to like us on Facebook too ,) but let’s be honest. You probably liked a bunch of companies on Facebook because you shop there and wanted to see what their Facebook page was all about, or because they were running a contest that required you Like them—not because they offer you any tangible benefit today. Alternatively:

  • Follow the same companies on Twitter instead. Twitter doesn’t come with the same commitment that Facebook does, or the same access to your friends. You could also use Twitter lists to stay on top of their deals and coupons without having to like or follow them at all.
  • Set up a second Facebook account for “liking” purposes. A second account, one that you only use for things like promotions and discounts, is invaluable—stuff it full of as much or as little information as you choose to provide, and then use it instead of your main account. You can even use it as a way to see what’s Facebook is sharing from your primary account without you knowing (although the specifics vary from friend to friend.) Note: Facebook’s policy is one person-one account, so you’d likely be violating their TOS by doing this. Just something to keep in mind.
  • Adjust yourFacebook Ad Settings . One reader noted that you can also make sure to limit Facebook’s ability to use your name and likeness in ads (which they currently don’t, but say they may in the future), and how they use your likes and pages to generate ads for others to see. There’s even a settings page governing it, even though it’s quite buried. Set both options to “No One.”

Buy Facebook likes cheap on posts and public

How to buy likes on Facebook for the most useful and effective result, and also secrets of buying reposts on Facebook fast, qualitatively and cheap

What are the differences between likes on posts or on communities?

U nlike the others social networks, you may find different types of likes on Facebook. It is a rather interesting possibility: likes can be placed not only on posts, notes, pictures but also to the whole page in common. So let’s try to find out the differences between them, and to figure out how they can be useful in the promotion of your personal page on Facebook:

Posts likes

The most familiar way to us to show our sympathy to one or another post, picture or note is to like it. The only thing you have to do is to click the like button, which is situated under a post or a picture. And here you may notice one more difference from others social networks. The system offers to you not only to “thumb up”, but also some more actions, such as “hearts”, “super” and etc. It helps you to identify people’s attitude to your content.

So, why might you need such likes? Likes on posts or pictures usually show users’ activity in your community. The big number of likes is considered as a qualitative content, which people find attractive. Analyzing them, you can easily identify people’s preferences and publish more content connected with people’s wishes. This activity can help you to bring your community to the top.

Page likes

The main difference between likes, which we described earlier, is to express sympathy to the whole page in common. Saying other words, if you like a page and you find the context attractive, useful and interesting, you can put like on the community. In this case, you can’t choose the variety of emotions, there is only “thumb up”.

But these kinds of likes are more useful. It is connected with a popularity of your community page. The more page likes you have, the faster your page will get to the top. And that is the reason why the majority of users are trying to find the best way to buy Facebook likes.

How to increase the number of likes and reposts on Facebook?

A fter we have decided that likes can be really valuable and help with bringing your page to the top, it is important to know how fast, safe and effective increase their number, and also, how to increase the reposts number. Let’s look through some ways:

Sharing information for likes. You can setup such application as Facebok Poll. It helps you to generate and publish polls on your page. If user is subscribed on you, they can take part in the poll. Firstly they have to put like under a banner, and after that, they can do the poll;

Sales for likes. Hand out coupons with a sale for your goods to all people, who “liked” your page;

Add social buttons on widgets on other recourses (blogs or sites). Many of them have already button “like”. This way, a user can “like” your page haven’t even visited your page on Facebook;

You may use free exchange services. In this case, you can get some likes in exchange of doing some tasks, which are provided by the service. However, if you don’t want to spam with your account (which is necessary condition of an agreement with the services), you can just buy Facebook likes or page likes, but in this case there are no guarantees, that this order will be done;

Well, and, probably, the easiest and the most effective way to increase the number of “thumbs” is to buy likes on Facebook. In this case, you shouldn’t wait until a user will “like” your post; you also shouldn’t waste your time analyzing the users’ preferences. You can buy likes on Facebook on our website. We offer our clients to purchase likes for posts or to pages at low prices. And the result will be instant and full. The same thing with reposts. As well as Facebook likes buy, you can easily buy reposts just in several clicks. In a result, you will get the qualitative performing of services and safety of such purchasing.

Choose the most convenient way to you to increase likes on Facebook, and the result won’t let you wait. However, you should remember, that over-using automatic programs for likes, sending messages, invitations, can cause your account banned.

What is the average price for buy likes on Facebook?

W hen you have decided that the way of purchasing likes on Facebook looks more attractive to you than waiting for results of your subscribers, you might have a question: “How much does it cost to Facebook likes buy or to buy some reposts? And how much money can I spend to buy FB likes?” Here we’ll try to show the real situation at that moment.

At this moment the average price for 1000 is ranging from $10 to $30. The precise price, which is usually cost to buy fb likes, depends on a quality of a material, and, of course, greediness of a seller. For example, on our website you can find the lowest prices, however, the quality of our likes and services is still high. It is connected with the thing that our company is not rushing for millions of dollars and we’re trying to do our job honestly.

How to buy likes on Facebook on our website?

T o buy Facebook likes cheap with help of our website, you might need to do some actions:

Link the page where you can choose what you want;

Clarify with the number of likes you want;

Fill in necessary forms;

After that, the only thing you’ll have to do is waiting. The rest part of the job will be done by our employees. Also, you may not be afraid for the safety and confidentially of your personal account. Before you buy Facebook likes cheap, you can read the rules, and guarantees we offer on our website. Also, there always is online qualitative and experienced consultant, who can answer your questions.

What can you get if you buy Facebook likes on your page?

S ome users may have the question: “Why do you need likes on Facebook?” Some of them think that it is useless digital value, which shows only the “coolness” of your page. However, these kinds of argumentations are not correct:

When a user “likes” a post, the post is automatically shown in the user’s news feed. If the person has its own popularity on Facebook among their friends, then your post can be seen by not only to your audience. So if you want to buy Facebook likes cheap, you should pay attention on the number of accounts which are provided by the service;

Also you can get additional popularity by increasing the likes’ number. You can exchange them on sales or polls. Looks so, that likes on Facebook can be used as a local currency.

I n conclusion, we can summarize that likes and reposts are not an empty html-code on Facebook. With the help of them you can increase your own popularity and popularity of your community. To do it, it is easier to use paid services. In this case, you may be sure in safety your account and the quality of adding recourses.

Reactions: Not everything in life is Likable

I come to Facebook to share all kinds of things with people I care about — from celebratory posts about practicing yoga for 60 days straight, to mourning the loss of a parent. Those same people who connect with me on my stories also have their own stories to share. Sometimes we just want a simple way to say we really love what they shared, or to express empathy when life takes a turn.

In 2009, Facebook introduced a button that allowed people to give feedback to their friends’ posts. We called it Like, and people liked it a lot. It’s simple and effortless to scroll down your News Feed and tap the little thumb to acknowledge what your friend posted. Sometimes it can be tough to know what to say; or maybe you don’t really have much to say and you just want to let someone know you heard them. That’s what the Like button does so well. It is simple and frictionless.

But, not everything in life is Likable.

It was time to look beyond the Like.

People had told us that they’d like more ways to express themselves on Facebook. About a year ago, Mark brought together a team of people to start thinking seriously about how to make the Like button more expressive. We were excited to start this process — It’s not every day you get the chance to work on such an important piece of a company’s product.

We knew at the onset that this project would be challenging. There were obvious challenges like making the solution work on various platforms and across a host of devices, both old and new. Then there were more challenging aspects to figure out. For instance, we have spent a lot of time refining the Like, Comment, Share buttons so that it’s easy to use and understand. It is a surface that is interacted with a lot, so any change will affect the understandability and usability of millions of people’s actions. We needed to thoughtfully curate any change so it felt like a natural evolution, taking care not to feel abrupt or disrupt everyone on our platform.

There were other questions that would need to be answered: What would the reactions be? How will people understand them globally? How can people best consume Reactions? How can people easily leave a Reaction? These are complex questions to be solved, all while keeping the mechanics of Liking easy.

Like all good design, the process of getting to a simple solution is complex.

It was incredibly important to be empathetic here and it’s why we did so many iterations, and took the amount of time we did. The whole point of expanding reactions is to have a universally understood vocabulary with which anyone can better and more richly express themselves.

We broke the problem down into two distinct pieces and began to work them in parallel:

  1. What are the reactions we will use beyond Like
  2. How will people input and consume reactions

For both of these tracks, we came up with key principles that we’d use as a playbook by which we operated. These principles acted as a guide for our team and helped us clarify decisions throughout the life of the project. They wouldn’t explicitly tell us what the final solution was, but they would hint at what it wasn’t and provide a direction for us all to head in.

Principles, combined with insights from empirical research and data, along side the instincts and knowledge gleaned from the talented industry elites here at Facebook was how we’d solve this. As such, the team we created included researchers, content strategists, engineers, and my main design team: Andy Chung, Brandon Walkin and Brian Frick.

The Reactions

Here are the principles that guided us in determining the set of reactions we are rolling out with now:

  1. Reactions should be universally understood. Reactions should be understood globally, so more people can connect and communicate together.
  2. Reactions should be widely used and expressive. Reactions should allow people to give feedback in more expressive ways that better align with the varied ways we react to things in real life.

We first needed to consider how many different reactions we should include. This might seem like a pretty straightforward task: Just slap a thumbs down next to the Like button and ship it. It’s not nearly that simple though. People need a much higher degree of sophistication and richness in what choices we provide for their communications. Binary ‘like’ and ‘dislike’ doesn’t properly reflect how we react to the vast array of things we encounter in our real lives.

Even though this wasn’t going to be binary, was this going to be like emoji, where people have hundreds to choose from? Probably not. Amongst other reasons, having hundreds of reactions to choose from could mean each post had dozens of different types of reactions left on it, which would be difficult to consume in News Feed. Additionally, the more reactions we offered, the less likely they would all be universally understood.

For more than a year, we have been conducting international research to explore what types of reactions people might find most appealing. Here are some of the things we looked into:

Top Stickers
We looked in aggregate at top stickers and emojis to get signal on what types of “reactions” people were already using on Facebook.

Most Used Search Terms for Stickers
While less common, we also looked at what terms people searched for when using stickers:

Top short comments
We also took an anonymized global sample of commonly used, short comments. These gave us some of the specific language that people use to express themselves, and helped us understand more fully the context in which people use these types of comments. Here’s an example of some short comments we saw from the U.S.

In addition to analyzing samples, we did international surveys, talked to people, and worked with our internationalization team. From here, we narrowed the set down to a more refined list:

You may have noticed that there are two reactions from that list that aren’t in what we released in this week’s launch: “Confused” and “Yay”. In testing, “Confused” was used so rarely that it didn’t make sense to include it given the cognitive load adding additional reactions has. Each reaction needs to serve a unique purpose for most people, and “Confused” didn’t end up doing that. “Yay” was tough to justify too. It wasn’t as easy to understand or internationalize, and it would often overlap with “Haha” or even “Like”. The system was just better as a whole without these two for now.

The Illustrations
Another crucial component was what reactions should look like. We wanted to create illustrations that were unique to Facebook, but we also wanted them to live gracefully in the ecosystem, and be easily and universally understood. Here was an initial direction:

Our initial illustrations weren’t communicating what they were intended to communicate to when they were seen at a relatively small size. They had served their purpose as placeholders as we designed the system, but it was time to start iterating on these.

The challenges here included figuring out what style would be appropriate to encompass across the set, and still have each individually and clearly express the intended reaction. Overlapping how we expressed the reactions was also something we encountered. The tiniest design tweak to one reaction could make it look too similar to another, or even end up not expressing the reaction at all. “Wow” could start to bump into “Yay” and “Yay” could look like “Haha” just by changing the curve of a smile or the squint of an eye.

We also explored a system both with, and without, labels. Labelling the reactions helped define what the reactions were, and that in turn, helped with internationalization. These needed to be universally understood, so if a friend from Japan reacted to your post, you mutually agree upon what that reaction meant. To understand this, we worked closely with internationalization teams and professionals in the field of non-verbal communication. We ran various research studies and tested early versions in different countries.

Early versions were static and we knew animation would be key in making them more expressive. We worked with an animator to bring the static reactions to life, while designers and engineers figured out how to make these play in a performant manner. Designers used pseudo-code to programmatically animate each reaction. Their work could then be passed on to Engineers to replicate the intended animation with high precision in the final build so they animate buttery-smooth.

When we started incorporating animations, we thought simultaneous animations would be overwhelming to the eye. So at first, we had only one reaction animating at a time (the one your finger was scrubbing over), while the rest of them remained static. While not intended to work this way, we realized during a Zuck review (where you meet with Mark to show progress of a big project like Reactions) that if you quickly scrubbed your finger across all of them they would all animate at once. Mark himself suggested we animate all of them concurrently when the dock is exposed. It turns out we liked this a lot more too. Thanks, Zuck.

The System

Without some predetermined context of principles within which we agreed to operate, we could quickly find ourselves building a complicated system that wouldn’t scale as well as we needed it to. Here are a few principles that guided us:

  1. Reactions should be an extension of the Like button. Like, Comment, and Share are ubiquitous to Facebook, and adding a fourth option at this point would introduce more complexity.
  2. Reactions should not make existing behavior more difficult. It was important that we introduced this feature responsibly, in a way that didn’t disrupt the way a billion people already used the product. In other words, we wanted to retain the simplicity and ease of Liking — when you tap on the Like button, you are “liking” the post.

Leaving a reaction
When we started exploring the input mechanism we didn’t know what, or how many, reactions there would be. Some early research said it would probably be somewhere between five and ten. As a stress test, we started by designing an input that could house up to fifteen different reactions, since it would be easier to scale it back than it would be to extend it.

Early concepts and initial attempts like these are purely educational — they teach us what works, but often more importantly, what doesn’t. They reveal gaps, unknowns, and more.

While we felt the above approach did a decent job of allowing a broad range of feedback quickly, it revealed some problems. In other words, it was teaching us about what the solution would need to encompass:

  • The UI could be cut off at the top of the screen;
  • Despite the large size of the scrubbable area, people would often slide their finger on top of the labels;
  • Parsing text labels felt laborious and would make internationalization difficult;
  • The line-art styling of the illustrations looked great at larger scale, but proved difficult to parse at small sizes — something we’d need when thinking about how people consume these on News Feed;
  • Some people would invoke the scrubber, then lift their finger so they could tap on a reaction, and this would dismiss the input interface;
  • Larger numbers of reactions might open up too much redundancy in the set.

We continued to iterate. The first prototypes included a single illustration that would change based your finger’s position over the expression word. This evoked a desire to preview each reaction before making your decision, instead of just being able to see all options at once. It was too cumbersome and time consuming.

Eventually, we dismissed the single illustration concept in favor of the dock model. This approach allowed people to quickly see all of the reactions at once. Parsing facial expressions instead of reading text created a much friendlier and internationally recognizable system. We were able to solve other problems that earlier concepts had as well. For example, this new system adapted to its position on screen, so no longer would it be positioned out of view. We moved the labels of the reactions so your finger never obscured them. Lastly, once the reactions dock was invoked, people could now either scrub or tap on the reactions to choose one.

Consuming Reactions
In a world where we only had to deal with Likes, how you consumed them was pretty straightforward. We just told you how many it had by saying “17 Likes.” It’s a string of text that sits right above the Like, Comment and Share buttons. That string of text is internally called the Bling String. This would need a complete rethink because stating “10 Reactions” didn’t communicate any of the variable sentiments that this feature was designed to provide — Did people generally find this post funny, sad or surprising? The solution needed to let the specific reactions be individually recorded. We also wanted to continue to be able to convey total feedback, just as we did with a total Like count.

Our first approach was an obvious one. We would design the bling string to show each reaction used and include a count of how many times it had been left. This worked fairly well on posts that had just a couple reaction types left on it, but it really fell apart on those that had a ton of engagement — especially public content. It also was difficult to understand the total feedback. The old bling string was simple because it was only conveying one piece of information. As a result, it was easy to scan and understand, or ignore and scroll.

A Beginner’s Guide to Buying Facebook Stock

Suffice it to say, Facebook (FB) has had its ups and downs over the past year, and so has its stock price.

Ever since its initial public offering in May 2020, it has remained a high-profile company that consistently captures the public’s imagination. A key member of the popular FAANG group of tech industry superstars that also includes Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Alphabet (GOOG), Facebook enjoyed an exceptionally strong and relatively smooth rise for years after its IPO.

Facebook’s Very Bad Year

Of course, the social media giant has not been exempt from problems, and they came to a head in 2020. Issues of serious concern had been building for years over Facebook’s handling of user privacy and fake news, the company’s implicit role in permitting the site’s use by criminals and terrorists, and a user data breach of massive proportions.

Facebook experienced its most severe backlash for inadvertently assisting the now-defunct British political consulting firm Cambridge Analytica to data mine and exploit millions of user profiles that appear to have been misused to target political ads during the U.S. presidential election season and in the U.K.’s Brexit referendum campaign.

Partly as a result of that personal data scandal, Facebook issued lower guidance for ad revenue in its July 2020 earnings report, which contributed to the company’s stock plummeting by over 20% at one point. This marked the biggest drop ever for the stock. In fact, it was the largest loss of market value in the history of the U.S. stock market, at well more than $100 billion lost.

How to Analyze Facebook

Despite these many troubles, a strong case might be made that the long-term outlook for the company remains positive. Such a case depends on how the company and its stock are analyzed.

With this guide, beginning investors should get a better idea at how to navigate through potential pitfalls and what to look for when considering investing in Facebook (FB) and similar stocks. Venturing into the stock market can be frightening, but every seasoned investor was once a beginner.

Before buying any stock, investors should perform due diligence to ensure that the company and stock have the potential to perform well. Due diligence can include different forms of analysis, the most basic being fundamental analysis and technical analysis.

  • In fundamental analysis, the investor evaluates the intrinsic value of the stock by considering the overall economy and industry conditions as well as the finances and management of the company.
  • Technical analysis uses statistics that include the stock’s past prices and volume. Rather than looking at a company’s intrinsic value, technical analysis focuses on identifying patterns and trends in the stock’s current and future price movements.

Fundamentally, investors should research the company’s financials. These can be found in its latest SEC filings. The company’s website should have an investor relations page. Financial sites like our own Investopedia also offer exceptionally useful company-specific information.

Doing Due Diligence

To make a case for buying Facebook stock, the investor should analyze ad revenue growth, including mobile growth, usage trends, risks to operations, and outlook and guidance.

Also look at the trends for profit margins, total revenue, and monthly active users (MAU). Are these numbers going up, down, or sideways?

After doing one’s due diligence and feeling comfortable with the decision to buy the stock, the investor should determine if the current price is an appropriate entry point.

Fundamental analysts calculate valuation metrics to determine if the stock is undervalued (when the entry price is most attractive) or overvalued (investors may want to wait for the price to come down before buying the stock). The Price-Earnings Ratio (P/E Ratio) is the most common valuation metric, but there are many others.

The P/E ratio for Facebook is 21.42, as of March 1, 2020. In isolation, that doesn’t tell the investor much. However, if it’s compared to historical or industry P/E, it can determine how the stock is valued relative to its trends.

Another way to see if the stock price is at a good entry point is to look at its historical stock chart trends. Technical analysis looks at various aspects of price and volume to see if the stock is at a desirable level for entry.

Facebook’s (FB) stock price trend since 2020 IPO. Source: TradingView

If You Decide It’s a Buy

Once the investor determines that the stock is a good value at the current price, the next step is to calculate the number of shares to buy. Most online brokerages have a share calculator attached to their stock purchase process. Otherwise, the calculation is:

Total Amount Desired to Invest / Price per Share = Number of Shares to Purchase

The current price per share, which for Facebook is $162.89 as of March 1, 2020. (The current price can be found on any financial website such as Investopedia.com.)

For Facebook, if the total purchase amount is $10,000 at a price per share of $173.74, the investor can buy:

$10,000 / $162.89 = 61 shares

The Bottom Line

A decision to invest in Facebook, or any stock, requires research and analysis. Investors should consider both the potential rewards and risks before buying stocks. Investing and trading are usually accomplished using a brokerage account.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Perfect Choice For Beginners!
    Free Demo Account!
    Free Trading Education!
    Get Your Sing-Up Bonus Now!

  • Binomo
    Binomo

    Only For Experienced Traders!

Like this post? Please share to your friends:
Binary Options Trading For Beginners
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: