Categories AlphaGraphs, Technology

Instagram is worth over $100 billion: Report

Photo-sharing app Instagram, which last week announced that it has reached 1 billion monthly active users, is reportedly worth over $100 billion as a standalone company. The Bloomberg report also predicted that Instagram would exceed 2 billion monthly active users in the next five years as it keeps attracting new users at a faster pace than the parent company.

Instagram will account for 16% of Facebook’s (FB) revenue in 2018, compared to 10.6% in 2017, the report added.

Related: Instagram reaches 1 billion users; introduces long-form video

The growth rate of Instagram is backed by another study by Pew Research Center, which shows that younger users prefer Instagram and Snapchat over Facebook. As per the study, 85% of the teenagers use Google’s (GOOGL) YouTube, while 72% use Instagram, and 69% use Snapchat (SNAP). In contrast, only 51% of the teens use Facebook.

Teens Popular Social Platforms

It is worth noting that Facebook is currently trying to attract more users through its live streaming and video-on-demand service.

Meanwhile, a new study from Similar Web shows that users spend about 53 minutes per day on Instagram. This is close to the average time spent on Facebook of 58 minutes per day. Snapchat users, meanwhile, spend 49.5 minutes per day on the app. Since last year, average engagement has improved in all three social network sites.

Instagram, which is maturing as a prospective social media platform, will likely turn out to be a gold-mine for Facebook as younger audiences are pouring into the site. With newer innovations such as the IGTV, we can expect to see sustained growth in this segment of Facebook.

Most Popular

HPE Earnings: Hewlett Packard Q1 2024 profit drops but beats Street view

Information technology solutions provider Hewlett Packard Enterprise (NYSE: HPE) on Thursday reported lower earnings and revenues for the first quarter of 2024. Earnings, however, exceeded analysts’ forecasts. First-quarter profit, excluding

After entering FY24 on a high note, Costco is all set to report Q2 results

Costco Wholesale Corporation (NASDAQ: COST) stands out in the retail space for its unique business model that enables the warehouse behemoth to grow store traffic and market share constantly. Currently,

Hormel (HRL) expects continued momentum from its foodservice business in FY2024

Shares of Hormel Foods Corporation (NYSE: HRL) soared over 13% on Thursday after the company delivered better-than-expected earnings results for the first quarter of 2024 and reaffirmed its outlook for

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top