Instagram supports more than 1 billion active users around the world, with its image-sharing social media platform being a favored pastime for a huge chunk of the global population.
Unfortunately, Instagram is not a publicly traded company, and there has never been an Instagram IPO date set. Despite the fact that Instagram itself is not a publicly traded company, there is one key way to gain investment exposure.
This article will dive into the Instagram company's history and detail its importance to the business model of its parent company, Meta (NASDAQ:META).
The History of Instagram
Instagram was founded by Mike Krieger and Kevin Systrom, and the image-sharing social media app achieved rapid success. Within its first 2 months, Instagram had attracted its first million users. The platform’s core team stated in a community post at the time that they had only just now “expanded to 4 team members.”
Instagram’s rapid success can be attributed to a strong product-market fit and an effective influencer marketing campaign during its opening stages. Prominent figures across sports, music, art, finance, and travel, were all spotted using the app in its opening months, which helped capture the attention of fan bases across a variety of modern pastimes.
The exponential growth achieved by Instagram during its opening stages culminated in Facebook purchasing the company after 18 months for $1 billion. Instagram had recently added Android support, and less than a year later, the company’s next major milestone of 100 million users was achieved.
As of today, Instagram remains a subsidiary of META, formerly Facebook. The app has introduced several key features since the acquisition, including Instagram Ads, Stories, carousel posts, and IGTV. Instagram now has more than 1 billion users worldwide and continues to grow year-over-year.
Between 2017 and 2019, Instagram roughly doubled its revenue for three consecutive years. Between 2019 and 2021, Instagram more than doubled its revenue again to hit a $47.6 billion annual figure, with 69% driven by Instagram ads. That year, Instagram contributed to 45% of META’s total revenue generation.
After introducing Instagram Ads in 2015, the company experienced rapid revenue growth, via Instagram quarterly revenue 2015-2022
How to invest in Instagram?
Instagram is not a publicly traded company, and it was acquired by Facebook after just 18 months in business. Mark Zuckerberg announced the Facebook IPO date within a month of purchasing Instagram, which means that the best way to gain exposure to Instagram is by investing in Meta (formerly Facebook) stock.
Will there be an Instagram IPO?
There are currently no plans for an Instagram IPO date to be set. Facebook has changed its business model over the years, and anyone seeking to gain investment exposure to any of its subsidiary companies would be best off purchasing META shares.
In 2021, Instagram generated 45% of Meta’s total revenue. It has become an integral component of the business model, with Instagram Ads providing businesses with access to more than 1 billion active users through a detailed targeted advertising system. Due to its importance within the Meta company structure, it’s unlikely that Meta will ever announce an Instagram IPO date.
How to invest in Instagram FAQs
Is Instagram on the stock market?
Instagram is not available on the stock market. However, Meta is available on NASDAQ under the META ticker symbol, which means that anyone seeking to gain exposure to Instagram can do so by purchasing META stock.
Who owns Instagram now?
Since 2012, Instagram has been a subsidiary of Facebook, which has since rebranded to Meta. Meta retains full ownership over Instagram to this day.
Can you invest in Instagram stock?
It is not currently possible to invest in Instagram stock directly. The only way to gain exposure to Instagram is by purchasing shares in its parent company.
META represents one of the most significant tech companies in the world, representing the F in the famous FAANG acronym that describes a multinational tech conglomerate that has become powerful during the 21st century. The acquisition of Instagram helped to solidify Facebook’s position as a dominant force in the digital world, and so buying META shares is the best way to gain Instagram exposure for most investors.
When is the Instagram IPO date?
Meta has no plans to announce an Instagram IPO date as things stand. While the company may decide to launch an Instagram IPO at its own discretion, this currently looks unlikely.
Instagram is responsible for a large percentage of Meta’s total revenue, and Meta is able to retain a full monopoly over advertising across Meta and Instagram thanks to its acquisition. Instagram’s significance within the Meta business model means that a separate Instagram IPO date may never be announced.
The bottom line: Instagram is not a publicly traded company but you can gain exposure through its parent company META
Instagram now serves more than 1 billion users around the world and was responsible for almost half of Meta’s total revenue in 2021. While the company is not publicly traded itself, investing in META can be a great way to gain exposure to Instagram.
Both Instagram and Meta operate under an aligned business model that focuses on targeted advertisements to their billion-strong user bases. This relationship was helped by the acquisition of WhatsApp in 2014, and Meta has experienced major revenue growth across all of its subsidiaries during that time frame.
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