Instagram Stock. Reasons to Buy Facebook Stocks and Never Sell Them

Instagram Stock Price on the Stock Exchange – Live Chart Online

As Facebook owns Instagram, you cannot buy Instagram stocks directly. If you want Instagram stocks, you need to invest in Facebook. To find out how much Facebook stock is worth, use this chart, it shows the real and current price of Facebook stock on the stock exchange:

The attractiveness of the shares of this American issuer is due to the presence of a good financial performance, which is due to the significant amounts of revenue and profits generated by advertising various products and services to a large number of Internet users.

Instagram Stock Symbol and Market Data

The start date is considered to be February 2004, when thefacebook.com went live. In 2005, the domain name facebook.com was acquired, and in 2006, access to the social network became open to all interested users. The founders are: Mark Zuckerberg, Chris Hughes, Dustin Moskovitz and Eduardo Saverin.

Facebook Inc Affiliates. What they do?

Since its founding, the company has been actively growing its business and acquiring other organizations that did business on the Internet. Today, the largest social network owns and operates the following companies:

• Facebook Payments Inc. which promotes online payments.
• Atlas, which is actively developing an advertising platform of the same name.
• Instagram LLC, which handles the Instagram network.
• Onavo, which develops services for mobile Internet users, in particular, allows to compress mobile traffic.
• Moves, which develops apps for fitness enthusiasts.
• Oculus, which is developing the production of short-lived videos that allow users to immerse themselves in virtual reality.
• WhatsApp Inc., which is engaged in refining and improving the popular Internet messenger.
• Masquerade, which creates mobile video and photo applications.
• CrowdTangle, which creates tools for working or analyzing content that appears on the social network.

The multitude of subsidiaries allows the social network to provide a large number of useful services to users and advertisers, which increases revenues, profits, as well as the share price of Facebook, due to the growth of quotations on the stock market.

Dividends on Instagram stock

Facebook Inc. has not paid dividends to its shareholders since its initial public offering. This is due to the desire of management to direct the bulk of profits to purchase other companies in the sector to more actively develop business on the Internet.

Why is it profitable to buy Instagram stock?

Mark Zuckerberg – as the main inspiration and creator of the company.

As the main face of the company, he is confident about his future and the future of the company as a whole. Mark has a lot of ideas that he brings to life with a very serious trump card, which is the network effect, which is the value of the product, and it is very useful both individually and for a group of people. For example, it connects and helps to connect with people in different parts of the world, in a matter of seconds. Each newcomer to the network, brings his friends and acquaintances to the network, thereby increasing the traffic and usefulness of the network.

According to statistics, each user spends on average 18 minutes a day and about 110 hours a year on Facebook.com. This allows the company to analyze the user’s behavioral factor in order to offer the best terms for providing advertising. If government services are trying to get some information about a person, there is plenty of that information. This helps the company make even more money since the company knows what the person needs and what space they are in.

Growth and more growth

The demand for social media and services is growing every day. Users have new methods of communication, the company offers more and more services, which is reflected in the spread and recognition of the brand around the world. People actively communicate with each other, conduct transactions and buy goods. The company, in turn, buys new projects and startups. 

Instagram Stock is Very Profitable

No one knows yet how Facebook will monetize WhatsApp Inc. There are no ads or banner ads there. And Instagram is hugely popular. Accordingly, these projects will have huge profits in the long run.

Thus, it is necessary to invest in Facebook & Instagram right now – it is a very profitable and promising business. Also, it is worth paying attention that the process of buying shares is carried out only through brokers.

Opportunities for Instagram stocks

In the near future, the management may take actions aimed at increasing the number of active users, both in the social network itself and in other projects, which can include messengers and Instagram service. The increase in the number of users will allow the U.S. issuer to achieve higher values, both revenue and profit due to the growth of advertising revenues. Improved financial performance will improve the outlook for the growth of quotations, and will arouse interest in the shares of Facebook among many investors.

Today, a significant portion of advertising revenue comes from traffic from mobile devices. Such analytics may encourage the issuer’s management to actively develop in the future a business focused primarily on users visiting the social network via tablets and smartphones. In particular, Instagram and related projects will develop more dynamically and generate more revenue. All of this could lead to an increase in the price of the issuer’s securities.

In the long term, Facebook shares can bring investors a very good return.

The share price may cross the 200 USD per share milestone.

For this, the company’s financial reports should rapidly show growth, increase in the audience and of course advertising revenues. Major acquisitions will also affect the stock. We should not forget about the development of those projects that Facebook has already acquired.

Reasons to Buy Instagram Stocks and Never Sell Them

Brian Stoffel, one of The Motley Fool’s financial journalists, explained why the biggest social network’s stock will never disappear from his investment portfolio.

Facebook currently holds 12% of our investment portfolio, and we have no intention of selling its stock… at all. Undoubtedly, the future holds many surprises, but here are ten reasons why I am confident that we will still be holders of these stocks in our retirement.

Competition? What competition?

Facebook has one of its strongest competitive advantages: the network effect. Each newcomer leads the next, motivating those who are not yet registered. In fact, it makes sense: Who needs a site that no one’s friends use?

The key is not to be afraid to be first and create a platform that is unparalleled in the world. While MySpace may have once led the way and Alphabet (NASDAQ: GOOGL) swept up Google+, Facebook still left them far behind. Today, the number of active Facebook users who visit the site each month has reached 1.8 billion.

Lots. Information

Evil government organizations around the world can spy on their citizens for centuries, but they won’t collect half the information Facebook contains. According to Alexa.com, the average user spends 18 minutes a day – or 110 hours a year – on the site. And all that time, the company draws new information about you.

This allows Facebook to resort to a particular kind of targeted online advertising technology that only Alphabet uses. This is a huge advantage which allows the company to charge more for its advertising space.

It’s still growing

We could understand and forgive Facebook if its growth slowed markedly. But for a company of this size with a market capitalization of $350 billion, it is still showing steady positive momentum. Take a look at the following facts:

The number of active users per day increased 17% in Q3 to a figure of 1.18 billion:
The number of active mobile app users per month grew 20% to 1.66 billion.
These are incredible numbers for a company that has already reached this size.

Don’t forget about WhatsApp

The flow of advertising on Instagram has only recently been launched. In addition, we have yet to learn about Facebook’s plans to monetize WhatsApp. But it’s already clear that both sister projects are crazy popular. Statista estimates that Instagram has more than 500 million users, while WhatsApp has more than 1 billion.

The company’s goal is higher than just Facebook.com … or Instagram or WhatsApp.

A company cannot become truly revolutionary if its vision does not extend beyond just collecting profits. According to the official version, “Facebook’s mission is to enable people to share information with each other and make the world more open.”

And that mission leads to optionality

The term “optionality” is used to explain how a company can venture into other areas where it will help the world (and increase shareholder value). In short, optionality includes many small risky bets that are forward-looking. Most of these bets won’t pay off — and that’s okay. The lessons learned from such failures will only help the company in the future .

One example might be the company’s involvement in the development of the solar-powered Aquila airplane – it provides an opportunity for internet connectivity in remote parts of the world. Such planes can remain in the sky for months at a time, allowing some of the more isolated communities to communicate with others. Another example is Terragraph, which aims to increase Internet speeds and reduce Internet costs in densely populated urban areas.

Facebook has the money to launch projects like this

As of September 2016, Facebook’s assets reached $26 billion in cash and equivalents, and that’s with no long-term debt of any kind. Facebook could use this money for its trial projects and strategic investments in next-generation Instagram or WhatsApp, as well as to buy back shares or even start paying dividends.

The point is that the money opens up a lot of opportunities for the company – regardless of the economic climate.

Zuckerberg is just taking a run-up

There aren’t many top-notch companies led by 32-year-old geniuses to invest in. As long as Zuckerberg doesn’t follow in Bill Gates’ footsteps and deviate from his initial course, he could be at the helm for another 30-40 years, and that’s not even really getting ahead of himself.

The head of Facebook is personally interested in the company’s profitability

Don’t rely on the movie “The Social Network” and think that Facebook is just Zuckerberg’s favorite project for which he nurtures his own ego. He personally controls over 460 million shares of Facebook, and his management team- including himself- owns 545 million shares and 61% of the voting power.

Instagram stock is not really that expensive

You’d think you’d missed your chance to make some money on Facebook-Instagram stock. After all, they’re up 560% from their 2012 low. And if you look at most sites, they will tell you that there was a 57 percent increase in profits.

But you can look at the price tag another way: Facebook’s share price to free cash flow ratio is currently hovering around 40, with 2017 expected to be 23 of projected earnings (non-GAAP).

These are extremely reasonable numbers for a company that matches the nine points above. That’s why I think you should consider buying (and not selling!) Facebook stock, too.