In an article on Street Wise, Rebecca Strong said that when Mark Zuckerberg, the CEO of Facebook Inc (NASDAQ:FB) acquired Instagram, people were skeptical about the fruitfulness of the deal but the young CEO has proved that Instagram was the best deal Facebook Inc (NASDAQ:FB) had in the recent past. Intagram value was $16 billion at the time of its acquisition from Facebook Inc (NASDAQ:FB) and now, it is worth more than $35 billion. Instagram adds around 16% in the overall market value of Facebook which is $221 billion. The article also quoted a recent study by Citigroup which says that Facebook Inc (NASDAQ:FB)’s Instagram will be one of the biggest social photo platform in the coming future.
Facebook Inc (NASDAQ:FB)’s Instagram fame and user base has led the analysts of Citigroup to increase the price target for Facebook Inc (NASDAQ:FB) from $86 to $91. The source also said that Instagram is now coming in the market cap area of the likes of the big giant companies like American Airlines and Kraft Foods.
A famous technology investors Erick Jackson has said that Facebook Inc (NASDAQ:FB) made the best internet acquisition in the form in Instagram. Twitter is not behind Instagram with a market cap of around $23.3 billion.
An interesting study by Forrester shows that for a single common post shared on Twitter, Facebook Inc (NASDAQ:FB) and Instagram, users’ engagement level is completely different. Instagram per user engagement is 58 times more than Facebook Inc (NASDAQ:FB) and 120 times more than Twitter. Instagram users share more than 70 million photos and videos daily. Twitter and Facebook Inc (NASDAQ:FB) are not even close to this engagement level.
The study by Citgroup has also showed that Facebook Inc (NASDAQ:FB)s Instagram user base will grow into 420 million and will generate $2.7 billion.
Ken Griffin holds 4.58 million shares worth $307.87 million of Facebook Inc. (NASDAQ:FB).
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