Instagram Is Estimated to Be Worth More than $100 Billion
Facebook’s Instagram is estimated to be worth more than $100 billion if it were a company. This estimation was made in Bloomberg Intelligence report shared by analyst Jitendra Waral.
Facebook bought Instagram back in 2012 for $1 billion and the app has shown extraordinary growth and gave 100-fold return to Facebook. The best thing about the Instagram is that it knows how to change with the time to keep youths attached with the app. It smartly copied several features from other trending apps including Snapchat and managed to perform well. Stories and videos help Instagram not just in attracting new users but also in boosting daily active users.
Instagram is now attracting users faster than Facebook and is expected to cross 2 billion users mark in next 5 years. Instagram’s user base is also younger than its parent making it more attractive to advertisers.
Last year, Instagram accounted for 10.6% of Facebook’s revenue that is expected to touch 16% this year. The way Instagram is growing and managing the user engagement, I won’t be surprise if it exceeds the expectations.
Facebook spent $19 billion on WhatsApp and $2 billion on Oculus. These are yet to give any return to the company in terms of money.