According to the data that were compiled by Bloomberg Intelligence, Instagram, a company that is owned by Facebook Inc., is currently estimated to be worth over $100 billion, if it were to operate as a stand-alone company. The figure marked a 100-fold return for the app that was purchased in 2012.
In a report that was published on Monday, Jitendra Waral, an analyst from Bloomberg Intelligence, wrote that earlier this month, the photo-sharing platform was able to reach 1 billion monthly active users. The same report says that it will likely help nudge the revenue of Instagram to surpass billion over the coming 12 months.
Waral said that Instagram is attracting new users faster than the main site of Facebook. It is also on track to have more than 2 billion users within the next five years. While the social network has already surpassed the said milestone, the audience of Instagram is younger than its parent, making it much more attractive to advertisers. And not like Facebook, Instagram is still growing in the United States of America.
According to the data from eMarketer that was cited by Bloomberg Intelligence, Instagram could account for approximately 16 percent of the revenue of Facebook over the next year, an increase from the 10.6 percent that was reported last year. The unit announced that the introduction of Instagram television, or IGTV, last week was considered as an effort to catalyze future growth. Waral said that the majority of the 2018 revenue growth of Instagram will still likely be generated from the newsfeed ads of the photo-sharing platform, as the TV platform of hte company is still on the process of development.
At 2:12 p.m. in New York City, the shares of Facebook dropped by 3.7 percent to $194.23. It comes as the broader market also plunged. So far this year, the stock has gained 10 percent as compared with a gain of 1.5 percent in the Standard & Poor’s 500 Index.