How much would Bloomberg be worth
Instagram would be worth more than $ 100 billion as a standalone company
The signs are still pointing to hypergrowth: It's been a week since Instagram founder and CEO Kevin Systrom had to announce two groundbreaking announcements at a press event.
On the one hand, Instagram presented the first major new feature since the introduction of the Stories format two years ago: the new IGTV video format, which is also offered as a standalone app, in which users can watch videos up to an hour long on their smartphone vertically and in full screen .
Already 2 billion users by 2023?
As Instagram CEO Kevin Systrom also announced, the photo network is now used by at least a billion people who are active once a month - and has thus risen to the elite club of mega apps such as Facebook itself, Messenger or WhatsApp. According to the analysts at Bloomberg Intelligence, however, the first billion should only be a pass-through station to further milestones.
As the financial information service calculates in an analysis, the booming photo network is likely to double its number of users within the next five years: to 2 billion.
Already $ 10 billion in sales for the next year
The economic contribution to the parent company Facebook is also growing, according to Bloomberg analysts. After Instagram is said to have contributed 10.6 percent to Facebook's total sales last year, the revenue share could swell to 16 percent this year, reports the financial information service.
Bloomberg's intelligence analyst Jitendra Waral also expects Instagram's revenues to crack the 10 billion dollar mark for the first time in the next twelve months.
Bloomberg thinks $ 100 billion valuation is reasonable
Of course, that much growth also increases the valuation. It's been three and a half years since Citigroup announced the fair value of $ 35 billion for Instagram. Fast forward to 2018, when Instagram played a key role in the recent Cambridge Analytica crisis in preventing Facebook shares from coming under more pressure.
According to Bloomberg Intelligence, the value of Instagram has almost tripled on the basis of the analysis data: Analyst Jitendra Waral estimates the valuation of Facebook's photo app as an independent company at more than 100 billion dollars.
For CEO Mark Zuckerberg, the courageous acquisition in April 2012 shortly before the IPO is becoming more and more of a king transfer: as is well known, the social network paid only a billion dollars in cash and shares at the time. The actual transaction value when the takeover was completed was only 715 million dollars due to the fact that Facebook's share price had fallen at the time.
Cody Willard: Only a fraction without Instagram and WhatsApp
Hedge fund manager Cody Willard goes even further in the rating for Instagram. According to Willard's assessment, Facebook would not be trading much higher today than it was when it went public in 2012, when the social network started at prices of just under $ 40.
"If Facebook, the company, would not also own Instagram and WhatsApp today to make up for how bad Facebook, the social network, has become, the share would be quoted below $ 50 today," Willard wrote two weeks ago in a statement with and on Facebook.
In fact, the social media pioneer is trading at $ 199 and valued at $ 576 billion. In Willard's assessment, Facebook, the social network, would only be worth a quarter of the overall rating - Instagram and WhatsApp correspondingly three quarters. Assuming an approximately equal value for Instagram and WhasApp, the booming photo app would even have a valuation of over 200 billion dollars.
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