Instagram, if to evaluate the photo-sharing platform separately from Facebook, now could be over $ 100 billion, Bloomberg says.
Facebook acquired Instagram in 2012 for $ 1 billion. Thus, Instagram’s value has increased 100-fold in six years.
In June 2018, the number of active users of Instagram exceeded 1 billion and, unlike Facebook, continues to grow significantly.
Over the next five years the figure could double, says Bloomberg Intelligence analyst Jitendra Waral, as Instagram is attracting new users faster than Facebook’s main site and is on track to exceed 2 billion users within the next five years.
This will help Instagram to boost revenues of over $ 10 billion over the next 12 months, Waral predicts. Instagram’s audience is younger than the parent company, which makes it more attractive to advertisers.
Instagram television IGTV is bound to catalyze growth in the near future. Meanwhile, 2018 revenue growth will still likely come from its newsfeed ads.
According to Bloomberg, the share of Instagram revenue among Facebook’s total revenues can reach 16% over the current 10.6%.