Buy Twitter If Instagram Is Worth $35 Billion
Summary Citigroup analysts assigned a $35 billion valuation to Instagram that is only now monetizing the user base. Instagram and Twitter have comparable logged-in user bases, though the former is growing faster. Twitter is significantly ahead of Instagram on the monetization path, and provides an attractive valuation compared to Instagram that is part of the significantly larger Facebook. The absurdity of a $35 billion valuation on a company division that is barely producing revenue is comical, but that is the valuation assigned to Instagram by a Citigroup analyst. The market and especially investors in Facebook (NASDAQ: FB ) that bought the social picture sharing service for $1 billion were initially excited about that news. Clearly, Facebook got a great deal at the $1 billion valuation, but investors need to wise up to the proclaimed valuation. Read the full article at Seeking Alpha. Disclosure: Long TWTR via GSVC. Please rev...