This is a story about how a company called Facebook bought another company called Instagram for a lot of money in 2012. Now, if someone had invested $1,000 in Facebook when it bought Instagram, they would have a lot more money now because both companies are doing very well. Read from source...
1. The title is misleading and clickbaity: it suggests that the reader will learn how much they would have made if they invested $1000 in Meta Platforms (then Facebook) when Zuckerberg acquired Instagram for $1 billion in 2012, but it does not deliver on this promise. The actual calculation is based on the stock price of Meta Platforms at the time of the acquisition and at the end of 2023, which is arbitrary and irrelevant for most readers who are interested in their own investment performance.
2. The article uses outdated information: it mentions that Instagram raised funds at a valuation of $500 million days before the acquisition, but this was revealed to be false by later reports. The actual valuation of Instagram at the time of the acquisition was around $1 billion, which is what Meta Platforms paid for it.
3. The article makes unfounded comparisons: it claims that Instagram has been making more money from ads than Alphabet's YouTube, despite the latter's dominance in the video streaming industry. This is not supported by any evidence or data, and it ignores the fact that YouTube is a different platform with a different revenue model than Instagram. It also does not account for the costs and expenses involved in running each platform, which affect the net income and profitability of their respective owners.
4. The article repeats information that is already given: it states that Instagram was being courted by two dominant social media platforms at the time, X and Meta Platform (now X). This is redundant and unnecessary, as it does not add any value or insight to the reader. It also shows a lack of originality and creativity in writing the article.
5. The article has no conclusion or takeaway: it ends abruptly with the introduction of Benzinga's trading tools and services, which is irrelevant and off-topic for the reader who wants to learn about the investment performance of Meta Platforms and Instagram. It also seems like a thinly veiled attempt to promote Benzinga's products and generate revenue from the readers.
Positive
Key points:
- Meta Platforms acquired Instagram for $1 billion in 2012
- If you invested $1,000 in Meta Platforms when it acquired Instagram and went public in 2012, here’s how much you’d have now
- Instagram has been making more money from ads than Alphabet's YouTube despite the latter's dominance in the video streaming industry