Web: Instagram will be a $3B business this year: Analyst

January 2016 by: From The Web

If early reports and analyst estimates are any indication, Instagram is shaping up to be an impressive business for its parent company, Facebook.

Since opened its advertising program to the world in September, Facebook has yet to offer any hint as to how much money it has been making on the photo-sharing app it acquired in 2012 for $1 billion. Facebook-watchers are hoping the company will finally share some details in its fourth quarter earnings call, scheduled for after the market closes on Wednesday.

Until then, there are analyst estimates. Credit Suisse analyst Stephen Ju and his team expect the business to contribute $730 million in revenue for the fourth quarter. Credit Suisse calculates 25% quarterly growth from the business, for a total of $3.2 billion in revenue this year. That’s impressive for a business that had zero revenue at the beginning of 2015.

By 2017, Credit Suisse estimates Instagram will be a $5.3 billion business.


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