November 2, 2024

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A big business starts small

Instagram Stock: What You Need To Know In 2021

9 min read
Instagram Stock: What You Need To Know In 2021

This story originally appeared on Best Stocks

Can I buy Instagram stock?

Instagram is not a public-traded company. But since Facebook bought Instagram, you might consider buying FB stock instead. Buying FB stock would mean investing in the Facebook group rather than a stand-alone platform. Hence you would be investing in the earning results of WhatsApp, Facebook, Instagram, Messenger, and Oculus. FB is one of the best stocks to buy right now, according to several analysts.

In 2012, Facebook purchased Instagram for a hefty sum of 1 billion dollars. When this news broke, there was mixed speculation about how it would affect both companies. Instagram users were angered by the purchase and left the platform in mass. But, on the other hand, Facebook’s stock surged to new heights.

Instagram is an image-sharing app that allows people to take photos or videos and edit them with filters before posting them online. It has more than 500 million active monthly users and is very popular among teenagers. Facebook is an online social networking service that enables individuals to create profiles, upload photos, and share videos with friends and family members connected through these profiles.

With over 1 billion users, Facebook is the most popular social media platform in the world. After it acquired Instagram in 2021, Facebook became an even more powerful force. For many marketers, the acquisition was a way to reach their customers on two different platforms. But not all companies were happy with this move.

For example, BuzzFeed faced problems when it tried to post content to Facebook through Instagram that seriously compromised its social traffic. Instead of just sharing their article with Facebook followers, both platforms would share it simultaneously and directly compete for views and likes.

About Instagram

Who is the founder of Instagram?

Kevin Systrom and Mike Krieger created Instagram on October 6, 2010. Kevin is also the co-founder of “Whatsapp,” another company – together with Instagram – that Facebook acquired later on in 2014. He was born on November 6, 1984, in Connecticut, USA. He grew up in California and attended Stanford University, where he studied engineering and product design. His classmates included future entrepreneurs like Google CEO Larry Page and YouTube CEO Susan Wojcicki. At that time, Kevin dropped out of his studies to create Burbn, which would eventually become Instagram. In 2010 he was named to the “Time 100”, an annual list compiled by “Time” magazine of the 100 most influential people in the world.

In July 2012, Instagram had more than 30 million registered users, and over 15 billion photos were shared as of December 2013. As of April 2016, it has 700 million active monthly users. Instagram was born as a free photo and video sharing application that could be used on various devices. Since its creation, Instagram has offered users a way to post images and short videos, share them with other Instagram users, and follow other Instagram users. 

Other features also included the possibility to enable push notifications when somebody posts something new. Instagram soon started including filters that turn ordinary photographs into works of art. In addition, it allows for personalization with text and emoji stickers.

Features of Instagram

With over 1 billion users, Instagram is the most popular social media app for sharing photos and videos. This success is because many features make it different from other apps. Hashtags, for instance, are a big part of the Instagram experience. They function as a search engine for your photos. This means that hashtags are how people will find your content, so it is essential to know which hashtags to use and why. Users also seem to like in Instagram the possibility to tag people in your photos, add location information to images, and edit images with filters before posting them. 

But there is one feature that sets Instagram apart from other social media platforms: storytelling. With storytelling tools like Instagram Stories, you can share images, videos, and text with your followers. So whether you’re sharing what you did today, how you feel about your job, or just wanting to keep up with friends, Instagram has something for everyone. The app has evolved to include features that allow you to tell stories, express yourself, and connect with others. 

Instagram is also about interconnectivity: you can also connect your Instagram account to your Facebook and Twitter to share a photo or video with the camera on the app. Then you can use pre-made filters by tapping the rainbow wheel icon in the top left corner of the screen. After choosing your filter, select from thirteen fonts to add text before posting on the different platforms. Despite this success, the company has not announced its intention to go public, hence when buying Instagram stock will be possible.

Top stock gainers today: NXNN stockBNHLF stockCNNC stockAGYP stock.

Investing in the Facebook group

FB Stock
Source: Getty Images

Facebook stock value

Facebook has been around since 2004 and already has over 2 billion monthly active users worldwide. This means that many people use Facebook daily, so it would be hard for competitors to take away their market share. For example, when Snapchat came out, Facebook copied its features instead of competing with them using a more direct approach.

Facebook (NASDAQ: FB), now called Meta Platforms has been able to increase its market share by making major changes to its website. For example, in 2006, they introduced the News Feed. This allowed people to see what their friends were doing much more accessible. As a result, this gave Facebook a competitive edge in the social media industry. They were able to expand and grow their market share because people began spending more time on Facebook. In 2021 the social media market has increased rapidly, second only to TaaS stocks.

It’s hard to imagine that Facebook will slow down soon. With the company’s growth in recent years, it’s doubtful they’ll even come close. Facebook is set to release its new video-on-demand service in the coming months to take on Netflix, Hulu, and Amazon.
Facebook’s growth in recent years has been nothing short of impressive. With all of these factors considered, it’s clear that Facebook is a company worth investing in. They’re innovating and expanding rapidly, and their growth is only going to get better.

Facebook stock forecast

Many traders looking for investing in Instagram stock ended up doing it indirectly by buying FB stock. Facebook’s stock has been on the upswing this year. It more than doubled in value since January 2017 and is now trading at $345.3 per share.  The company beat analysts’ earnings expectations by 7% last quarter. In addition, a new report suggests that users may be more open to Facebook ads. These ads are much targeted based on users’ information, like their age and gender. The more data Facebook has on its users; the more effective the ads can be. The Facebook business model has been successful because it allows advertisers to reach their desired audience with one click. 

With 2 billion monthly active users, the most popular example is Facebook’s targeting of ads in news feeds. This is why they have over $40 billion in annual revenue even though they don’t have any physical products or factories of their own.

With prospects looking up, Facebook’s expansion strategy into new areas like e-commerce may be paying off. For example, users can now purchase goods through Facebook Messenger, with payments made via Messenger or credit card with no shipping address required.

Facebook’s rise in value is due to its release of new features and changes to its core business model. As more advertisers are now paying for the website’s services, Facebook has seen a surge in revenue. However, with that also comes an increase in spending. This is not ideal for this start-up company, once known as a social media site where people shared their lives online for free.

Top stock losers today: BTCS stockCNNC stockCPHT stockCTRL stock.

Instagram stock alternatives 

Snap stock (NYSE: SNAP)

Tech Stock
Source: Getty Images

Snapchat is a multimedia messaging app that allows users to exchange photos and videos that disappear after 10 seconds. In addition, users can add text or drawings and send them to friends or post publicly on their “Story.”
Snapchat was first released in September 2011, with the name “Picaboo.” 10 years later, the company filed for an IPO for between $20 billion and $25 billion. The IPO will be one of the largest tech IPOs in history.

The company did not turn a profit for many years because it relied on advertising revenue. As of December 2020, it had 158 million daily active users, and almost 60% of them were between 18 and 34 years old.

Many investors see the company’s growth as unsustainable due to its dependence on advertising revenue and lack of a clear path to profits. Given the company’s uncertainty, some are advising people not to invest in Snapchat. Still, there are also plenty who believe that this is a unique opportunity, and this is why we think that SNAP could be a great alternative to Instagram stock.

Snapchat stock is priced high according to several analysts; it’s currently worth $50.07 per share (as of November 22th, 2021). The company saw its public debut on March 2nd, 2017, with an IPO worth $3.4 billion (though this number fluctuates).

Snapchat is valued at between $20 billion and $25 billion at press time. This figure makes it among the 25 largest US companies by market capitalization.

Pinterest (NYSE: PINS)

Pinterest downgraded to neutral by JPMorgan
Fonte: Getty Images

Pinterest is a social media site that allows users to save and share their favorite pins. These pins can be anything from quotes, recipes, or images of outfits. Users can create boards with different themes and pin items. Pinterest has been around for more than ten years, and it continues to grow in popularity. Although there are many other social media sites like Facebook or Instagram, Pinterest is the only one that offers a way to bookmark and organize your interests.

Pinterest stock is trading at $43.39, with a -31.03% decrease in price in the last 6 months. It trades with a market capitalization of $14.4 billion and has an average daily volume of 6,000,000 shares traded.
On November 3rd, 2021 the company announced that it had exceeded its expectations for Q3 2021. Pinterest also reported positive net income in Q2 2021, with revenue growth driven by strong engagement on the platform. They are currently ranked #3 behind Google and Facebook in terms of social media platforms.
Pinterest’s investments in new features increased user engagement metrics across all categories except for video viewing time, which declined quarter over quarter.

However, despite an enormous user base of over 300 million, the company has yet to find a viable monetization strategy. Its latest attempt was to sell advertising space in Promoted Pins. But this too failed after Pinterest’s stock price plummeted upon release of lower than expected revenue.
Pinterest needs to come up with the idea that will generate enough revenue to become profitable, or else it will likely fail in the long run.

Twitter (NYSE: TWTR)

Twitter stock
Source: Getty Images

Twitter is an online social networking service that allows users to send and read short 140-character messages called tweets. 

Twitter’s blog posts are typically public, but the user can control the privacy of individual posts.

Twitter was founded in March 2006, and currently, it has more than 30 offices around the world. Twitter is based in San Francisco, California, and has more than 200 million monthly active users as of December 2013.

The company’s shares began trading on the New York Stock Exchange in November 2013. After a short-lived growth period, Twitter shares have fallen to a new low. 

Today, the company is trading as high as $48.10 per share, with a -22.72% decline in price in the last 30 days. Because of this many Twitter investors have said to be excited in front of the opportunity to move their social media investment to Instagram stock, whenever this will be possible.

Twitter has been criticized for its confusing interface and lack of innovation in the past few months due to Facebook’s successful features, such as live video chat. More recently, Twitter has been trying to change this by investing in live streaming and partnerships with major broadcasters–such as Bloomberg–. Still, so far, it doesn’t seem to be helping much with the stock prices.

During IPO, Twitter raised $2.7 billion from selling shares to investors at $26 per share, but now it’s taking on more debt than before.

Twitter is now trying to get the company back on track and increase its stock value. Among the changes they’ve introduced, their decision to stop counting video views as a user engagement metric in late January 2022. The latest update, which was announced in early June, will involve a new algorithm that will show users tweets they’re more likely to want to see at the top of their feeds.