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Why Instagram's $100 billion valuation isn't so crazyFrom the 3:59 show: We break down why the social network could be worth so much.
All right, is Instagram worth $100 billion? It seems completely ludacris but Bloomberg is out today valuing just Instagram by itself at $100 billion this is based on the fact that it's crossed the one billion user mark, recently it's projected to grow to two billion active users a month In the next five years, just worth noting Facebook is itself worth $575 billion dollars. Well what do you think ludacris? Yeah how is this ludacris, I think Instagram is like one of the fastest growing social networks out there, I mean there They're owned by Facebook. So I don't know how much of that you can credit to Facebook, but it has all these millennials going to it and all these people leaving Facebook for Instagram. A lot of celebrities would much rather use that They have this whole IGTV stuff which I've been seeing a lot of people using actually. I know last week when we talked, I was like, I don't think anyone's going to use it. I've caught myself watching a few videos on IGTV, right. Well, keep in mind, Facebook's evaluation is based on the fact that it's been able to make money off of targeted ads. Instgram still struggles with making money. That's why IGTV is Yeah but Instagram is also really good at like connecting influencers and like that's like the audience that like I think social media is headed towards next because if they're not really responding to these targeted ads anymore, but they will be responding to like their favorite you tuber or their favorite person on Instagram, like their favorite personality on social media. I think that's where most of its value comes from.