Slashdot Mirror
Instagram Is Estimated To Be Worth More Than $100 Billion (bloomberg.com)
An anonymous reader quotes a report from Bloomberg: Facebook's Instagram is estimated to be worth more than $100 billion, if it were a stand-alone company, marking a 100-fold return for the app purchased in 2012, according to data compiled by Bloomberg Intelligence. The photo-sharing platform, which reached 1 billion monthly active users earlier this month, will likely help nudge Instagram revenue past $10 billion over the next 12 months, Bloomberg Intelligence analyst Jitendra Waral wrote in a report Monday. 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, Waral said. While the social network already has surpassed that milestone, Instagram's audience is younger than its parent, making it more attractive to advertisers. And unlike Facebook, Instagram is still growing in the U.S.
The value of the company like Instagram is what they know about you, not what they do.
Instagram knows about you a lot more than Boeing, and if Instagram went bankrupt A LOT of data would be sold to the highest bidder. Consequences of such data release would be unpredictable.
The part of Instagram that is its value, is the number of young customers on its site, who are the future economic drivers.
Lets say Exon Mobile went out of business tomorrow, Millions if not Billions of people will be affected as they have the immediate need for fuel, and Exon Mobile is a major producer the loss of the company would cause a short term set of problems until competitors can ramp up to meet demand.
Now if Solar City went out of business that would probably drive down Solar Power Adoption, but will not cause any major problems. Those with Solar Panels will still work, those without can continue on with their lives. However its loss would slowly affect the future. Without Adoption of Affordable Clean Energy solutions we will be increasing pollution, which will cause other economic factors.
Instagram is how young people communicate, Facebook is how us older people communicate. Killing Instagram today, could mean today's kids when they get into the market and want to communicate with business contacts will probably be split up across many competing services.
If something is so important that you feel the need to post it on the internet... It probably isn't that important.
I work in IT, and it feels like there is a dot com bubble happening with valuations becoming ludicrously high, like amazons' 266+PE, NFLX PE 239. google fb, msft 27-30 PE.
And whle sectors of highly technical manufacturing, MAGIC level manufacturing, is rolling in sub 8 PE land.