As social media explodes, many people can’t even wrap their heads around the newest ways to share life with friends and family. It’s easy to get caught in the whirlwind of innovation and apps and miss the fact that some of these social media outlets are worth quite a lot of money, even if it’s a mystery to many how they work and why people would spend hours upon hours on these platforms.
Those artsy photos on social media may be worth a lot more than people would think. Instagram is now worth $100 billion.
The social network, which Facebook purchased in 2012 for a then-stunning $1 billion, has increased its value 100-fold, according to Bloomberg estimates.
Instagram last week revealed that it had surpassed the 1 billion user mark for the first time and will likely see its revenue top $10 billion in 2019, according to Bloomberg Intelligence.
The photo/video-sharing site has become the top social network among teen users and is on track to surpass 2 billion users by 2023.
The new valuation comes less than a week after Instagram announced IGTV, a platform that will allow high-profile users to post videos of up to an hour long, The New York Post reports. Instagram posts were limited to one minute.
One advantage for Instagram is its popularity with younger people. Earlier this month, a survey showed that more U.S. teens are using Instagram, YouTube, or Snapchat over Facebook.
A Pew Research Center survey found that 51 percent of U.S. teens, ages 13 to 17, say they use Facebook, which is a decline from the last survey of teen social media use in 2014 to 2015.
Back then, 71 percent of teens reported being regular Facebook users. In 2018, YouTube, Instagram and Snapchat are used by sizable majorities of this age group over Facebook, PYMNTS reported. Instagram is a photo and video-sharing social networking service that was created by Kevin Systrom and Mike Krieger. When it launched in October 2010 exclusively on iOS, the creators never could have dreamed it would become as valuable and ubiquitous as it is now.
In addition, last month, Instagram unveiled new features that will help users contact companies and enlist them for goods and services. The tools will also enhance companies’ visibility on Instagram. Instagram said 200 million active Instagrammers visit a business profile each day, and more than 150 million have a conversation with businesses on a monthly basis, the company said.
Shares of Facebook, led by CEO Mark Zuckerberg, fell 2.7 percent, to $196.35, The New York Post reports.
By: Ilya Boruch