Instagram is demonstrated on an iPhone Monday, April 9, 2012, in New York. Facebook is spending $1 billion to buy the photo-sharing company Instagram in the social network’s largest acquisition ever. Instagram lets people apply filters to photos they snap with their mobile devices and share them with friends and strangers.
A little more than two years later, Citigroup said Instagram is worth $35 billion, a number that the bank called “conservative” in a research note on Facebook issued Friday.
It is another piece of good news in what has been a stellar 2014 for Instagram. The photo-sharing app recently hit 300 million active users, putting it ahead of Twitter. At $35 billion, Instagram would also be worth more than Twitter, which currently has a market cap around $23.3 billion.
Facebook has not been in a rush to fully monetize Instagram, rolling out its first ads in late 2013, and recently adding video ads. While Facebook has not disclosed how much money Instagram is generating, Citi’s analysts said it could conceivably bring in $2.7 billion in 2015. Instagram is worth $35 billion, according to Citigroup