In recent times, especially thanks to apps like eToro and Robinhood, can become a stock trader. It’s a lucrative career opportunity. However, in this article we won’t talk about how to become a successful trader and whatnot. Instead, we will be focusing on Instagram stock and whether you can buy it.
So, can you buy Instagram stock?
In short – no. At least directly. You can only buy Facebook stock.
Facebook owns Instagram and is a publicly-traded company which means that if you believe in Instagram, and you think that the company will increase in value, you need to buy Facebook stock. Instagram value, trends and growth potential are all priced into the FB stock price.
Facebook stock is indexed ‘FB’ and trades around 250-280 USD per share (accurate as of August, 2020).
Is it worth investing in Instagram through Facebook?
This is a sticky question and by no means do we consider ourselves some experts in the stock market. Instead, we will just show you some charts and share some facts about Facebook stock and the company itself:
General info about the company
Founded: February 4, 2004
Headquarters: Menlo Park, CA, USA
Employees: Over 52,000 (as of June 30, 2020)
Revenue: 70.697 billion $ (2019)
Market cap (company value): 762 billion $ (August, 2020)
Facebook began publicly trading on May 18th, 2012. The stock opened at 42.05$ per share.
For the first eight months, the FB stock kept losing value and settled at somewhere around 20$ per share. However, at the turn of the New Year, the stocks’ value increased to around 25-27$ per share as optimism grew.
Further down the road, during mid-July of 2013 after Facebook posted an amazing earnings report, the stock soared in value, peaking at around 70$ per share on March of 2014.
If you look at the chart above, you can see that the stock price kept rising steadily for the next 5 years, up until today.
It took a slight dip around 2019 and also suffered some losses during the COVID-19 pandemic when major brands decided to boycott advertising on Facebook during this turbulent time. Nevertheless, management and entrepreneurial decisions were always top-notch at Facebook. The company value seems to grow at a very steady and predictable rate. Any storm that may come their way, Facebook is able to whether and come back even stronger than before.
If you want to know actual returns for investors, Robinhood makes it super-easy.
If you had bought Facebook stock 5 years ago (counting from August 20th, 2020), your returns would be 182.93% meaning that for every 1$ invested, you could get 1.82$ back for a 0.82$ profit for every dollar invested.
As a conclusion, we can say that investing in Instagram (Facebook, really) is definitely a great choice for beginner investors who want stability and steady growth.