Instagram now has 1 billion users
Instagram announced on June 20 that it has a whopping 1.0 billion users worldwide. The app’s user base has grown 25.0% since September 2017 when it reported 800.0 million users.
The Facebook-owned (FB) app joins an elite list of apps with 1.0 billion users or more. Instagram’s rapid rise has dwarfed the growth of Facebook and Snapchat (SNAP), which has a much smaller user base.
Instagram: An important source of Facebook’s revenue growth
Instagram is expected to be an increasingly important source of revenue for Facebook. While Facebook still has a massive reach of ~2.2 billion users, it’s becoming less popular in the younger demographic. Facebook is also recovering from the Cambridge Analytic data scandal.
Instagram also launched IGTV, a hub for longer videos that could compete with Google’s (GOOG) YouTube. IGTV could be a long-term source of ad revenues for the company and could attract more users to Instagram.
Facebook stock closed at an all-time high of $202.00 on June 20, spurred by this news. FB stock is up 14.5% in 2018. It has risen 32.7% since it bottomed out in March when the company was hit with the Cambridge Analytica scandal.