This is a great tweet from hedge fund manager Eric Jackson:
2 years ago Wednesday, $FB bought Instagram for $1 billion. Later this year, Instagram will pass Twitter in users. $TWTR market cap now $26B
- Eric Jackson (@ericjackson) April 7, 2014
Facebook has been on a tear buying companies - Oculus Rift for $2 billion, WhatsApp for $19 billion. Part of Zuckerberg's M&A spree has to be driven by the success of Instagram.
The Instagram-Twitter comparisons aren't perfect since Instagram hasn't turned on advertising in the same way Twitter has. But, it's coming, and when it does, it should be another spigot of cash for Facebook.