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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.
Been there seen that. We just had the cryptocrash and now we are looking for a new breed of tulip to plant.
If Boeing went out of business tomorrow, there would be a global aircraft shortage. If Instagram unplugged its servers, the world would continue unaffected.
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They are susceptible to advertisers who convinced them ads are valuable.
Between marketeers, investors, and corporate customers, there's a whole lot of mass delusion going on in the ad space. Frankly, I think it's a sign that corporations are making too much profit, and their leadership is too incompetent to know where to re-invest, so they just dump it into marketing.
No one would ever make $100Bn back on Instagram because it would be obsolete before you could ever make enough cash from selling the users' data.
"Encyclopedia" is to "Wikipedia" what "Library" is to "Some people at a bus stop"
The valuation is in line with the 29x current earnings of Facebook. Take the same 27% net profit margin and multiply by the revenue and multiply by 29 and you get $78.3B, a 13% premium for a company with a faster growth rate and better underlying fundamentals (younger audience in this case) is pretty small.
There are 4 boxes to use in the defense of liberty: soap, ballot, jury, ammo. Use in that order. Starting now.
"will likely help nudge Instagram revenue past $10 billion over the next 12 months... and is on track to exceed 2 billion users within the next five years"
So you're telling me that you make $5 a user a year? How? Where? Doing what? Who's paying that? Why are they paying that? What are they getting back for that $5?
Advertisers really are a special kind of insane.
Estimated accordingly to which values?
Sent as ripples into the electromagnetic field. No single photon has been harmed in the process.
Or, each user is worth $4/month over a 2 year period. That's not a bad price, when you consider advertising rates...
Browsing at +1 - no ACs, I ignore their posts. So refreshing!
I haven't used the iOS app in some time, but the Android app is a total and utter piece of crap. The people responsible for programming it are about as credible as this estimated valuation.
Yesterday I tried creating a post, and the text wouldn't populate. The image would appear, but no text. Couldn't reply to people either. Yes, it was the latest version. Is this how a $100 billion app is supposed to function?
It's plagued with problems like this, plus so much more is wrong with it - from unreliable and seemingly random notifications to the non-chronological timeline, to inane interaction 'rules' (like how for the longest time to reply to someone you pretty much had to type out their handle - this is finally better at least). The people programming and designing this are being rewarded for just about the worst-functioning app out there. What a world.
The true brilliance of marketing. All that psychological manipulation isn't actually to convince consumers to buy stuff, it's to convince business that you can convince consumers to buy stuff.
Instagram is not "worth" $100B. Here's how non-public valuations work (i.e., private companies or business units of public companies that aren't subjected to a stand-alone market trading test): analysts arbitrarily make them up based on what they THINK could POTENTIALLY happen. Especially in tech, rampant lying and fairy tale projections drastically impact the valuations.
Some generally accepted classic valuation methods would be 2-3x revenues or 3-5x EBITDA. Is Instagram producing $33B in annual revenues? Is it netting $20B in profit?
Even stand-alone public securities can be wildly over-inflated by the market's trade valuation (market capitalization) because of phony financial wizardry by the Fed.
This is all Wall Street / Silicon Valley BS
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