The photo-sharing app Instagram announced Tuesday that it reaches more 500 million users monthly, and 300 million users on a daily basis. The app has more than doubled in size in the past two years, adding 100 million active users faster than it added its previous 100 million. Users on the app share more than 95 million pictures and videos every day, with more than 80% of users coming from outside the United States.
The milestone is another notch on parent company Facebook’s (FB - Free Report) belt, as it continues to see great success with the apps it owns. The Whatsapp has approximately 1 billion users, and its self-made app, Facebook Messenger, hit 900 million users this past spring. The mark of 500 million montly users also speaks to how much more successful Instagram has been than rival social media app Twitter (TWTR - Free Report) , which has struggled in recent months and has been stuck around 300 million monthly users for some time.
The massive growth in Instagram users also helps to further boost Facebook’s efforts to sell the app to marketers as a great advertising choice. The app already has more than 200,000 advertisers, and the number is reported to be continuously growing at a rapid pace. Research firm eMarketer expects Instagram’s global mobile ad revenue to hit $1.53 billion this year, and hit marks upwards of $5 billion in just the next 2 years.
Though they are not reported, it is pretty obvious that Instagram has been a key part of Facebook’s impressive financial results as of late, especially in regards to the growth rate of revenues. As a reference, Facebook has beat on earnings estimates by 29.55% and 18% in its last two reported quarters.
Facebook is currently a Zacks Rank #1 (Strong Buy) stock, and has been a strong performer over the past year thanks to reported great financial results and continued growth. Instagram and its other globally-used apps have been key instruments in the company’s success, and milestones such as these are music to investors’ ears. If Facebook is able to continue the growth it has seen in its recent history, it has the potential to continue to move higher in price.
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