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Instagram`s audience is growing much faster than Facebook`s and Instagram can be Facebook`s best growth engine

Mark Zuckerberg and Facebook started its business 13 years ago on February 4, 2004. Many things have happened since then, and Facebook are now among the biggest corporations with its 2016 Revenue of US$ 27,638 Billion. The success continues.

The social media giant are growing like never before. Ad revenue grew by 51% YoY in Q1 2017. It jumped from $5,2 Billion to $8,85 Billion. Total revenue climbed 49% and earnings went from $0,60 to $1,04.



It is a big surprise for many to see that Facebook is still adding DAUs and MAUs (active users). Monthly active users have jumped to over 2 billion and their revenue will follow. Many companies are trying to take Facebook`s throne, but the giant are very strong and knocks off all challengers.

Snapchat is the latest challenger, but Facebooks Instagram seems to be strong in this market and will also contribute to Facebooks revenue growth. Instagram has over 700 million MAUs and 400 million DAUs.

Instagram is integrated in the social media business model and they have been selling ads for four years now. Instagrams audience is growing much faster than Facebooks audience and Instagram can be Facebook`s best growth engine.

Instagram is not the only growth engine of Facebook. They also have Messenger, WhatsApp and Oculus VR, and their next step will be to compete with YouTube.

Investors love the social media giant. In January this year, Facebook`s shares were trading at $115 per share and on Monday their shares were trading at $166 per share. The giant have jumped over 40% so far in 2017. Compare that to the rise in the benchmark S&P 500 index during the same period and see for yourself.

Facebook Inc is expected to report earnings on Wednesday 26 after market close. The report will fe for the fiscal Quarter ending June 2017. Earnings forecast for the quarter is $1,13 which is a big jump from $0,76 in the same quarter last year.



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