4/23/2024 0 Comments Stock symbol for instagramFacebook’s price was criticized by many as too high. To be sure, that doesn’t necessarily mean that WhatsApp’s valuation has tripled. Three years later, that number has more than tripled: the company disclosed early last year that the messaging platform had over 1.5 billion MAUs. At the time, WhatsApp had 450 million users. But the number could be similarly large.Īfter all, Facebook paid $19 billion for WhatsApp back in 2014. WhatsAppįiguring out the valuation of WhatsApp is a bit more difficult. Based on those criteria, $100 billion-plus amazingly seems reasonable. But Instagram is a better platform and has a better sales force behind it, and thus gets more value out of its users. That would suggest Instagram is worth at least $75 billion (four times Snap Inc’s current enterprise value). Assuming that figure has ticked up in 2019, based on Facebook’s projected $70 billion in revenue, Instagram likely will generate revenue in the range of $12 billion this year. Another analyst estimated last year that Instagram generated 15% of the company’s revenue. It’s impossible to double-check Bloomberg’s proprietary work, but the figure seems potentially reasonable. That analysis came soon after FB disclosed that the image-sharing platform had cleared 1 billion monthly users Bloomberg forecast that Instagram would hit the 2 billion mark in five years. Last year, Bloomberg estimated that Instagram was worth more than $100 billion. And based on what we can surmise, the valuations of both businesses suggest further gains by Facebook stock. Still, investors can at least get an idea of what each business is worth. But performing traditional fundamental analysis of those platforms is close to impossible. It’s easy to assume that WhatsApp and Instagram are valuable. The company’s MD&A (management’s discussion and analysis) section of its 10-K doesn’t mention either business at all. In fact, FB doesn’t even disclose user data for either platform, at least on a regular basis. InvestorPlace - Stock Market News, Stock Advice & Trading Tipsħ A-Rated Stocks to Buy for the Rest of 2019 FB doesn’t provide revenue or profit figures for either business they are instead rolled into the company’s consolidated figures. One problem with Facebook stock is that it’s difficult to tell exactly how much growth those businesses are posting and how much profit they are generating, if any. Both websites continue to post solid growth. One key reason why is the company’s “other” platforms - Instagram and WhatsApp. The stock now sits just 10% below its all-time highs, reached right before that disappointing Q2 report. With All Its Controversies and Missteps, Is Facebook Stock Worth It?ĭespite all that, however, FB shares continue to rise.
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