Facebook's latest acquisition makes sense
With Instagram, Facebook could easily eclipse its competitors in the photo-sharing space.
Instagram is a highly engaging service, with more than 30 million users on Apple's iOS mobile platform alone. It racked up more than 1 million downloads within a day of its launch on Android, and its strong growth continued after the acquisition was announced. Facebook competes primarily with Yahoo's (YHOO) Flickr and Google's (GOOG) Picasa in the online photo sharing space, along with scores of smaller players.
Instagram may turn out to be a great buy
Instagram saw some 5 million downloads for the Android platformin just six days, which makes it one of the biggest app launches ever. Android is the most popular smartphone platform, and Instagram's Android user base could become bigger than its sizable iOS user base with months at the current rate.
While there was a small outcry against Instagram getting acquired by Facebook, given the latter's limited history when it comes to big acquisitions, it didn't impact Instagram's popularity at all. Soon after the news broke out, Instagram also became the No. 1 free app on the iOS App Store for the first time ever. Facebook may also integrate Instagram with its platform in the coming days, which could further boost user numbers and engagement levels across the service.
Acquiring Instagram may actually turn out to be a wise move by Facebook. With the combined might of its own online photo sharing feature and Instagram's mobile photo sharing apps, Facebook could easily become bigger than any competitors in the photo sharing space.
We currently have a $82 billion valuation for Facebook based on discounted cash flow valuation of its advertising and virtual transactions businesses.
MORE ON MSN MONEY
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
When it comes to efficiency gains, a watt saved is a watt earned.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.