Instagram is expected to generate $14 billion in revenue this year and play a key role in driving Facebook’s growth, according to Jefferies analysts.
“We believe that Instagram is a material driver for growth in ’19 and can grow 60%+ supporting core FB which could decelerate below 20%+ growth for the first time,” the analysts told their clients.
“Instagram continues to drive growth and we think could add an incremental $5B in ’19 to revenue, to north of $14 billion.”
Instagram currently has more than one billion users, which makes it a particularly important asset to Facebook. With this userbase, the analysts said Instagram will continue to improve advertising efforts to benefit “pricing, users and impressions.”
Facebook shares took repeated hits in 2018 as the social media giant was rocked by the long-running privacy scandal with Cambridge Analytica centred around the data breach of around 87 million users. Dozens of other apps have been found to automatically collect data on behalf of Facebook as well.
Via: Business Insider