The decision of Facebook to purchase Instagram appeared to be smarter and smarter in every passing year. Instagram, as the fast-growing photo-sharing network, is seen to generate around seven hundred million dollars in its revenue for this year and it will be $5.8 billion for the year 2020. This was according to the new estimates from the analysts with Cowen and Co that has been shown in a chart recently.
That surge in its sales, based on the report, depends on the surveys of user conducted by Cowen and advertiser interest and projections for the user numbers of Instagram to more than twice to 680 million by year 2020 and for bigger marketers to follow. Facebook agreed to purchase Instagram in 2012 for one billion dollars although it ended up in paying less the said amount and waited until the late part of 2013 to introduce the advertisements then gradually begin monetizing the said service.
The analysts say that Instagram online is currently worth around $33 billion, approximately on par with another present estimate from the Citigroup. If it sounds that high, considering that Instagram today comes with more active users every month as compared to that of Twitter, a company that has a market cap of roughly thirty billion dollars.
According to Mashable, the said report just came out to public the same week that another company in the name of Snapchat, that Facebook attempted to buy before the end of year 2013, reportedly gained funding interest at the valuation of up to nineteen billion dollars. The stock of Facebook, the most popular social networking site with millions of active users across the world, ended up approximately 3.5 percent and assisted in part by positive projections included in the said report.
