Instagram Stock Price

Instagram is a picture and video social network. Instagram was co-founded by Kevin Systrom and Mike Krieger in 2010. Later in 2012, the firm was acquired by the social networking giant Facebook for $1 billion.

Since its launch, Instagram has gained immense popularity worldwide. More than a billion users had already joined Instagram by June 20, 2018. By the end of 2020, it is expected that Instagram will cross 1.125 billion worldwide, with 110 million users in the United States.

For the first time in history, Facebook usage is down. Prediction says that Instagram could be more popular than Facebook by 2021.

The app is available via Apple app store and Google Play for Android systems, and there is an easy way to participate in Instagram success when looking to buy Instagram stock.

What is Instagram?

Instagram allows users to post their videos and pictures and share them with their followers. One has a choice to make their content public or private. The app also provides many other features, such as editing content using filters, hashtags, and geographical tagging.

Instagram allows connecting your account with other social networking sites. This enables you to upload your content on Instagram and share it on other social media platforms.

Instagram continued to update its features regularly since its launch in 2010. In 2011, it launched the hashtag feature to help users discover both other users and images. In August 2015, the app started supporting the portrait and widescreen aspect. Instagram started allowing users to create draft posts in 2016. As an answer to rising competition from TikTok in 2020, Instagram launched the reel to compete.

Why is Instagram that popular?

Instagram reported 1 million users in just 2 months shortly after its launch in 2010. It is one of the most successful apps with close to 1.2 billion monthly active users as of 2020. There are several explanations for the success of Instagram.

Instagram takes the best parts of Facebook, Twitter, and Snapchat and combines them into one all-inclusive app. You can post photos or videos and add witty captions to them. You can follow other people, be classmates or celebrities, and like or comment on their stories. You can also tag your friends in photos or add locations. You can also send personal messages to people to stay in touch with them.

Instagram took the entire premise of Snapchat by adding their version of “My Story.” By adding this feature, they could attract a lot of Snapchat users.

It contains things that you can do on Facebook, Twitter, and Snapchat. The integration of the app with services like Twitter, Facebook, etc., has given the users an outstanding social media platform to showcase their photography talent or be it any.

Instagram is more commerce friendly, and it’s a better place for brands. Instagram is widely used by professionals in the field of art to showcase their work.

Who owns Instagram?

Instagram was initially founded in the US by Kevin Systrom and Mike Kriegerin in 2010. Facebook acquired Instagram for $1 billion in 2012.

Mark Zuckerberg, who is Facebook’s CEO, made it clear that they have no intention of integrating Instagram into Facebook. However, some features, such as ads, are shared between the two platforms.

Facebook bought Instagram when it had about 30 million active users and only 13 full-time employees. At that time, Instagram was not generating any income; hence, many people questioned the move. However, Instagram turned out to be a very successful acquisition for Facebook.

After 8 long years with Instagram, the founders Kevin System and Mike Krieger left the firm. Now, Facebook veteran Adam Mosseri is the current head of Instagram.

Even though Facebook is the majority equity holder in the company, it has other minor equity holders as well. Benchmark Capital and Andreessen Horowitz are two private equity firms, which hold stakes in Facebook.

Instagram IPO

As a retail investor, you can’t own stocks on Instagram directly. Given that Instagram is a Facebook subsidiary, the only way to have exposure to Instagram is to own Facebook stocks.

Currently, there are no plans to take Instagram public. In case Facebook decides to make an initial public offering of Instagram, it has to be done through a process called subsidiary IPO. In a subsidiary IPO, the parent will sell subsidiary stock to the public in a public offering registered under the Securities Act.

This will only be done if the management and equity holders see a value in Instagram being public by offering shares to buy

Instagram has a lot of competitors, which represent alternative investment opportunities within the same sector. Here is a brief about them.

Competitors of Instagram

Snapchat Inc.

Snap Inc. is a North-American social media company founded on September 16, 2011, by Evan Speigel and Bobby Murphy, and Reggie Brown.

The company developed several technological products, namely, Snapchat, Spectacles, and Bitmoji.

The founders own a combined 95% voting power (Spiegel with 48% and Murphy with 47%). The equity is undiluted and transferable to the other of the two when one retires or dies.

Pinterest Inc.

Pinterest Inc. is an image sharing and social media service designed to enable the discovery of information. The website was created by Ben Silbermann, Paul Sciarra, and Evan Sharp and had over 420 million monthly active users as of October 2020.

The company is currently listed on the New York Stock Exchange, and its stock price is $59.58 at this moment.

Twitter Inc.

Twitter is an American microblogging and social networking service. User messages (called tweets) were initially restricted to 140 characters but was doubled to 280 for non-CJK languages in 2017.

Twitter was founded by Jack Dorsey, Noah Glass, Biz Stone, and Evan Williams in 2006.

The company is listed on the New York Stock Exchange (NYSE). As of November 4, 2020, the market capitalization of Twitter is $33.04 billion.

How to Analyze and Trade Instagram Shares

Stock research websites are the best place to start researching specific IPOs. The best stock research websites allow you to set up alerts for specific news about a company. You could set up an alert with the combination of the company name and the term IPO, for example, “Instagram IPO.”

As an exchange-listed company, Instagram would be one of the best stocks to buy now. The best stock analysis software can be used for a more extended due diligence process before making the final decision.

Then, you can use the best stock trading apps during the IPO. The chances are that you get some stocks at the original IPO price. Alternatively, you can buy and sell your preferred number of shares on the IPO data or at any time later by using the official stock ticker symbol within your trading platform.

Once invested, you can use your brokerage account or one of the best stock tracking apps to manage your positions within the portfolio.

Instagram Stock Price Summary

The future of Instagram is brighter than Facebook and other applications. Instagram showed exceptional growth over the last ten years.

With more than a billion active users, the revenue is expected to be $14 billion. Instagram is popular for its ability to understand and meet the needs of its users.

Instagram’s advertisement revenue is growing as firms prefer the app to reach their audience.

Despite a bright future, you cannot buy its’ stocks directly through Facebook stocks. It is not clear yet if Instagram would go public anytime soon. Information about Instagram’s IPO will get more evident when the right time comes for Facebook to provide an initial public offering to investors as an additional way to invest money.

Investors may consider investing money on Nasdaq in stocks like Facebook and Snapchat. It is currently not possible to invest in Instagram stock, and therefore there is no stock price for Instagram stock available right now. The mentioned Instagram competitors represent an exciting option to invest money within the same industry. All of them have a strong community, exceptional growth, make money with ads, and are on the rise in terms of users and popularity.

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Updated: November 07, 2020

About the author: Alexander is the founder of daytradingz.com and has 20 years of experience in the financial markets. He aims to make trading and investing easy to understand for everybody, and has been quoted on Benzinga, Business Insider and GOBankingRates.