The Soaring Valuation Of Instagram Guarantees 100x Return For Facebook

Must Read

Facebook Reveals Big Plans Behind The WhatsApp JioMart Integration In India

After Facebook Inc. (NASDAQ:FB) acquired a minority stake of 9.99% in Jio Platforms for a whopping $5.7 billion in...

Facebook Launches Music Videos to Eat into YouTube’s Market

With the launch of Music Videos, Facebook has made another competitive move against its biggest opponent, Google.

Can CBD Gummies Be Beneficial For College Students?

College students often feel more pressure than they have ever—or will ever—feel in their entire lives. Many...

A pivot for millions of envy-inducing snaps, Instagram has emerged as the titan of social media. The unprecedented growth is translating in the valuation of Instagram as well. With its box full assortment of memes, gifs, this photo-sharing platform would have celebrated its rococo worth more than $100 billion, if it were a stand-alone company.

Instagram recently reached a billion users a month – A considerably vast user-base. This has a direct impact on the growing valuation of Instagram, as well as on Facebook. The photo-sharing platform which was acquired by Facebook in 2012 for $1 billion, now returns a 100-fold return for the app as the valuation hovering $100 billion.

Reportedly, Instagram is most likely to encompass about 16% of Facebook’s revenue over the next year, which is a considerable increase from 10.6% last year.

Advertisements

Introducing a new add-on of Instagram television (IGTV) last week, Instagram is sure to boost up the growth scope. Additionally, it can be conceived for now that the main contributors to Instagram’s 2018 revenue growth are from its newsfeed ads as the TV platform is in its initial phase.

A few days back, Pew Research Center survey found that there’s been a decline in the number of users from 71% in 2014-2015 to 51% as of now. Reportedly, in this year, YouTube, Instagram and Snapchat — are mostly favoured by the vast majority of teens, surprisingly, surpassing Facebook.

Bloomberg Intelligence analyst Jitendra Waral claims that Instagram is making hits with new users, faster than Facebook. With predictions as high as garnering 2 billion users within the next five years, Instagram’s audience, being more younger than its parent company, has been a nerve-centre for advertisers too. In addition, apart from the decline of Facebook fever in the US, Instagram still continues to grow.

Bells And Whistles Along With Soaring Valuation of Instagram

As Instagram is growing speed-ball, it also is adding new features and tools to continue to attract potential users.

On Tuesday, the platform trotted out its video content and group video chat feature, in addition to augmented reality stickers.

Advertisements

If this enticing roll-out wasn’t enough, Instagram unveiled new features which are here to help establish a connection between users and companies, in order to enlist them for goods and services. Not only, this tool will enable company’s visibility, but at the same time goose business profiles. As per company sources, it’s said that Instagram with 200 million active Instagram users visiting one business profile each day, about 150 million users have business altercations on a monthly basis.

The free features will enable a “better” way for businesses to manage their messages and operations. The messages are routed to the main Direct Inbox, rather than the pending folder.

Instagram – The Do-Gooder

“Without Instagram, Facebook is a completely different picture,” –  Jason Kint, chief executive officer of Digital Content Next.

In the year 2012, Instagram’s founder Kevin Systrom gave a nod to sell his company to Mark Zuckerberg for $1 billion of cash and stock. While sealing the deal, Instagram had 30 million users. Instagram has been relying on Facebook for its success since then, but now the tables might turn – Facebook may depend on Instagram for its longevity.

Given the fact that, Instagram’s audience is younger than Facebook’s, this acts as a much-needed advantage from a marketer’s perspective. And unlike Facebook, which has witnessed its first decline in North America in a span of the recent year gone, Instagram is still growing in its home market.

It certainly won’t be absolutely unrealistic to say that $200 billion of Facebook’s $435 billion market cap is due to Instagram’s appeal over the younger demographic who aren’t smitten by Facebook. There might come a time, wherein Facebook will stop growing internationally, while Instagram establishes itself as too important to the company’s prospects.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

After Facebook, Now Twitter is Caught Abusing Phone Number For Ads

Thanatophobia, or fear of death, is a relatively complicated phobia. Similarly, fear of losing your digital accounts to...

Warren Buffett’s Stake In Apple Is Worth More Than Combined Valuation of All Startup Unicorns in India

The Oracle of Omaha has got an eye for a good bet and it's proven time and again. Once a popular critic...

Microsoft Aims Global Acquisition Of TikTok, Including India!

It seems like TikTok can finally shed its Chinese origin from all over the world. It has recently...

Will Google’s Move To Delete 2,500 YouTube Channels Add Fuel To The Fire With China?

The US-China trade war has started rearing its ugly head. Both sides are now turning to extreme measures on the digital front...

Will You Buy iPhone 12 Pro At US$20,500?

if you are suspecting any typo error here, you are highly mistaken! The price of iPhone 12 Pro is US$ 20,500 now...

Google Is Shutting Down Google Play Music

Google Play Music will soon be buried in Google's graveyard. The company has announced that by December the service will be completely...

In-Depth: Dprime

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

Fantastic 4: Four Day Work Week A Flashpoint Of Innovation?

It has been an idea that has been mooted by many, perhaps also somewhat sceptically. From being a dark horse to becoming...

More Articles Like This