Instagram is an American photo and video sharing social networking service founded in 2010 by Kevin Systrom and Mike Krieger and later acquired by the American company Facebook Inc. The app allows users to upload media that can be edited with filters and organized by hashtags and geographic tags. Posts can be shared publicly or with pre-approved followers. Users can browse other users’ content by tag and location, view recent content, like photos and follow other users to add their content to a personal feed. In this post we going extensive coverage of Instagram Revenue, User Base, About its Parent Company and Instagram Stock.
Content Outline
Instagram overview
| Launch date | 6 October 2010 |
| HQ | Menlo Park, California |
| People | Adam Mosseri (CEO), Kevin Systrom (co-founder), Mike Krieger (co-founder) |
| Business type | Subsidiary |
| Owner | Meta Platforms, Inc., ( Formerly Facebook ) |
| Industry | Social media |
What is Instagram?
Originally launched for iOS in October 2010, Instagram quickly gained popularity: one million registered users in two months, 10 million in a year, and 1 billion in June 2018. In April 2012, Facebook Inc. acquired the service for about $1 billion in cash and stock.
The Android version was released in April 2012, followed by a feature-limited desktop interface in November 2012, a Fire OS app in June 2014 and an app for Windows 10 in October 2016. As of October 2015, more than 40 billion photos had been uploaded. Although Instagram is often admired for its success and influence, it has also been criticized for negatively impacting teen mental health, changing its policies and user interfaces, alleged censorship, and illegal and inappropriate content uploaded by users.
In case you have been living under a rock for the past decade: The Instagram app is a social media platform that allows its 1.96 ( Q1 2022* ) billion users to interact with their followers by sharing media.
These are the prominent features of Instagram:
- Photos and Filters: Many Instagram users are attracted to the app for its photos and filters, which allow them to turn everyday snapshots into professional images.
- Instagram Reels: The video feature allows Instagram users to create 60-second clips with followers (similar to TikTok), and businesses to create ads.
- Instagram Live Video: This feature creates a live stream that allows viewers to interact with content creators through real-time streaming that does not fit into the 60-second limitations of regular videos.
- Instagram TV (IGTV): IGTV allows Instagram users to create video content that is up to an hour long and can be flipped through similar to traditional television channels.
- Instagram Stories: Instagram Stories allows users to record stories that remain on the platform for only 24 hours after posting, similar to Snapchat.
With so many great features aimed at everyday people and businesses, it’s no surprise that the platform has over a billion users.
Instagram Revenue & User Stats
- Instagram generated an estimated $47.6 billion revenue in 2021, accounting for almost 50% of Facebook’s total revenue
- Over two billion people use Instagram once a month, making it the fourth most popular social app worldwide
- Instagram’s biggest market in terms of users is India, with over 300 million active users
- Over 70% of Instagram users are under 35 years old; Ratio of Male/Female users is 49.2/50.8
Who owns Instagram?
Social Media Giant Meta Platforms, Inc., ( Formerly know as Facebook ) owns Instagram. Meta bought Instagram in 2012 for about $1 billion in cash and company stock.
Meta Platforms, Inc. (formerly Facebook, Inc. and TheFacebook, Inc.) is an American multinational technology company headquartered in Menlo Park, California. The company owns Facebook, Instagram, and WhatsApp, among other products and services. Meta is one of the most valuable companies in the world. It is counted among the Big Five American information technology companies, along with Alphabet, Amazon, Apple and Microsoft.
Meta’s products and services include Facebook, Messenger, Facebook Watch and Meta Portal. The company has also acquired Oculus, Giphy, Mapillary, Kustomer and Presize, and holds a 9.99% stake in Reliance Industries Owned Jio Platforms. In 2021, the company generated 97.5% of its revenue from the sale of advertising.
In October 2021, Facebook’s parent company changed its name from Facebook, Inc. to Meta Platforms, Inc. to “reflect its focus on building the metaverse.” According to Meta, the ” Metaverse ” refers to the integrated environment that connects all of the company’s products and services
Besides Instagram, the social media company with ticker symbol NASDAQ: META subsidiaries ( Formerly NASDAQ:FB subsidiaries ) are including
- Giphy
- Novi Financials
- Oculus VR (virtual reality)
- and Many More…
These are just some of the companies in 95 companies acquired by Meta . With its hands in so many markets, it’s clear why so many investors consider the company a good investment.
How much is Instagram worth?
Facebook decided on the value of Instagram in 2012 when it bought the company. At the time, it was valued at over $1 billion. As the user base, content contributions, and brand value increase, so does the value of the company.
As of Sep, 2022, the Instagram is worth over $100 billions.
How Much Does Instagram Earns?
Instagram earned an estimated $47.6 billion 2021. Instagram’s revenue contributes over 50% of Facebook’s revenue.
Instagram has become the centre of digital marketing and advertising and has managed to increase its revenue from $26.8 billion in 2020. Instagram is undoubtedly proving to be the most important platform for social media marketing.
A survey found that 69 percent of marketers in the U.S. will spend the majority of their budget on influencer marketing on the Instagram platform in 2020. Instagram generated nearly $19.4 billion in ad revenue in 2019.
According to the study, 72 percent of teens are Instagram users, with 70 percent or more believing Instagram is the best way for various brands to reach them. About 89 percent of Instagram users are non-Americans. Interestingly, about 70 percent of people find out about new products and services on Instagram.
Instagram saw 209 percent year-over-year growth in the same quarter, while Facebook saw negative growth of 17 percent.
Can you buy Instagram stock?
The quick answer to this question is no, you can not buy the Instagram stock because it is not an independent company. But since Facebook owns Instagram, you can virtually invest in the company through its parent company. So if you own stock in Facebook, you are already investing in Instagram!
Technically, you are not invested in Instagram, but it’s basically the same thing, since Instagram’s performance is reflected in the larger Facebook stock price.
The benefit of Facebook owning Instagram is that you are also investing in several other well-known tech brands like Facebook Messenger, WhatsApp, Oculus, and more.
Facebook is always buying up smaller tech startups, so FB shareholders always have a new line of tech innovations to improve their stock portfolio.
When is Instagram’s IPO?
There are no plans for Instagram IPO in 2022 or in near future. Since it is owned by Facebook, the company is not expected to go public. Facebook had its IPO in March 2012 and is currently one of the most active tickers in the market since then.
How to buy Instagram Stock?
Buying Instagram stock is very simple as that you just need to buy the Facebook Stock. First, you need to open a brokerage account. There are hundreds of investment apps that you can download and use.
Some of the most popular online brokers include Robinhood, WeBull, M1 Finance and TD Ameritrade. Note: We Recommend Robinhood
Once you have an account set up, you will need to connect a bank account and fund your brokerage account. Most online brokers today do not have a minimum investment amount or deposit, but some do.
Once you have funded your account, you can simply search for Facebook’s stock symbol, FB, and buy as many shares as you like. Are you interested in buying Facebook stock so you can own a piece of Instagram too?
Check out Robinhood a brokerage company with no commissions where you get no of benefits.
What is the stock ticker for Instagram?
While there is no Instagram ticker symbol, as the company is not publicly traded, you can invest in Meta stock NASDAQ: META ( Formerly NASDAQ:FB ).
There are both advantages and disadvantages to buying parent stock. One advantage is that investing in a parent company usually gives you broader coverage of certain sectors.
For example, if you buy Facebook stock, you get a stake in Instagram as well as other subsidiaries that Facebook owns. As for the disadvantages, parent companies that own many subsidiaries, like Facebook, usually have high share prices.
So while you get a large market presence, you have to invest more money up front to get your foot in the door. This could be difficult for new investors who are just getting started in the stock market.
You also do not really have a choice about whether your money goes toward funding the subsidiary you are interested in. So, as you can see, buying Instagram stock has some positives and negatives. By buying the parent company and all its subsidiaries, you get a positive exposure, but you also have to deal with the higher share price.
Also, you are investing in a technology that may not interest you. Investing in Meta, formerly Facebook, may carry other risks and moreover Many countries have imposed strict regulations on the company’s activities and security practices, and these restrictions could affect its future stock price.
There are also some questions about whether or not the company is violating antitrust laws due to its overwhelming presence in the social media market. Even though the company is still the largest online platform, its membership numbers have declined in recent years, and other social media companies are catching up.
What is Instagram Stock price?
Over the past five years, Facebook’s stock price has decreased by 28.06%, from under $100 in 2015 to over $350 per share in 2021. Currently Meta is trading at $142.82 as of 23rd sep, 2022.
Facebook stock has an average daily trading volume of about 20 million, which means that nearly $5 billion worth of Facebook stock is traded on the stock market every day.
So let us do the math on how profitable Facebook/Instagram Stock are.
If you had invested $10,000 in Facebook when it originally went public in 2012, you would have received 263 shares. Assuming you did not put any money into that account, that $10,000 would have increased to over $81,000. A growth rate of 800% is surprisingly not the best stock market return there is, but it is a very good ROI.
Facebook/Instagram competitors
If you are looking for alternatives to Facebook/Instagram Stock, read on to find some competitors to keep an eye on.
Alphabet/Google (NASDAQ: GOOGL)
Google is a global company that has dominated the internet and online space for years. Although Google is technically controlled by its parent company Alphabet, Inc, it is publicly traded on NASDAQ.
This means that you can invest directly without having to buy shares in the parent company. The search engine and services like Gmail, Google Maps and YouTube are very popular and used by billions of people everyday.
YouTube has the most in common with Instagram and has even released a new video feature called YouTube Shorts, similar to Instagram Reels.
Conclusion on Instagram Stock
At the end of the day, investing in a great tech company can be a great way to round out your portfolio. Owning Instagram/Facebook stock offers several financial benefits.
Instagram is one of the fastest growing apps of all time and is one of the largest social media companies in the world.
FAQs of Instagram Stock
Take a look at our answers to the most frequently asked questions about investing in Instagram stock.
- Is Instagram a public company?
Instagram is not a public company. It is a subsidiary of Facebook whose shares are not available for trading. Facebook is publicly traded and available to retail investors. - How much is Instagram worth?
Instagram is worth over $100 Billions as of Sep, 2022. - What is Instagram Stock price?
The stock price of Instagram’s parent company, Facebook (now Meta), has traded for about $250 to $360 per share over the past year. Separate Instagram stock are not available. Currently Meta’s stock is trading at $142.82 as of 23rd, sep, 2022. - Is Instagram a good stock to buy?
If Instagram stock is ever available to the public, it could be a good investment. The platform has an impressive user base and has plenty of opportunities to expand its reach and features through the backing of parent company Facebook (Meta). - How can I buy Instagram Stock?
You can buy Instagram shares by purchasing FB shares. Investing in Facebook or Meta is easy because it is a publicly traded company. The fastest way to invest in Facebook is to find an online broker ( Robinhood ), sign up and buy as many shares as you are willing to buy. - Does Instagram has NASDAQ symbol specifically for NASDAQ Instagram Shares?
No, Instagram does have NASDAQ ticker symbol, Instagram comes under Meta ticker Symbol. NASDAQ:META ( Formerly NASDAQ:FB )