Instagram is close to becoming a $5 billion per year business

TECHi's Author Rocco Penn
Opposing Author Recode Read Source Article
Last Updated Originally published September 19, 2015 · 7:20 PM EDT
Recode View all Recode Two Takes by TECHi Read the original story Published September 19, 2015 Updated January 30, 2024
TECHi's Take
Rocco Penn
Rocco Penn
  • Words 69
  • Estimated Read 1 min

Facebook is actually fairly open with its own finances, but Instagram is another matter. The company likes to remain tight-lipped regarding how much money its standalone photo-sharing app makes, but analysts can still speculate and makes guesses as to the kind of money Instagram is bringing in. One such guess comes from analytics firm MoffettNathanson, which suggests that Instagram will be worth $5 billion per year in the near future. 

Recode

Recode

  • Words 191
  • Estimated Read 1 min
Read Article

Facebook doesn’t talk about the money it makes from its photo-sharing app Instagram. But that hasn’t stopped others from talking about it, or at least speculating about it. The most recent of those speculations comes from analyst firm MoffettNathanson, which predicted Friday that Instagram will bring in $600 million in revenue over the next year, with that number expected to jump up to $1.8 billion in the next two or three years. Eventually, when Instagram is “mature,” it will be a $5 billion per year business. (Many would argue that number is low, and even MoffettNathanson believes it’s on the conservative side; under the right conditions, it thinks Instagram could rake in as much as $11 billion per year.) Lots of people are high on Instagram, which has more users than Twitter and is just now getting the kind of ad targeting that drives marketers to Facebook day in and day out. Facebook has been purposely slow to ramp up Instagram’s advertising efforts, and some of the hype right now is because of its new 30-second autoplay video ads, which some believe could pull in money from traditional TV ad budgets.

Source

NOTE: TECHi Two-Takes are the stories we have chosen from the web along with a little bit of our opinion in a paragraph. Please check the original story in the Source Button below.

Balanced Perspective

TECHi weighs both sides before reaching a conclusion.

TECHi’s editorial take above outlines the reasoning that supports this position.

More Two Takes from Recode

Microsoft might be willing to fund a Yahoo acquisition
Microsoft might be willing to fund a Yahoo acquisition

Remember that time Yahoo turned down a $44.6 billion acquisition offer from Microsoft? Well, here we are eight years later and Microsoft…

Google and Microsoft are backing Apple’s legal filing against the FBI
Google and Microsoft are backing Apple’s legal filing against the FBI

Shortly after Apple CEO Tim Cook reaffirmed his belief that helping the FBI break the iPhone's encryption would harm both his…

Cisco is spending $1.4 billion to begin its Internet of Things expansion
Cisco is spending $1.4 billion to begin its Internet of Things expansion

Expanding into the emerging Internet of Things market shouldn't be too hard for Cisco considering how it's the largest manufacturer of networking…

Marissa Mayer has written a kill list for Yahoo’s employees
Marissa Mayer has written a kill list for Yahoo’s employees

The fate of Yahoo's employees is being determined by where they are on the new kill list that CEO Marissa…