Also, when FB acquired Instagram in stock and cash, its own valuation was around $50B. Now it is 8 times that.
Also, you have to also account for the synergetic benefits which FB provided to Instagram in terms of getting users quickly started by following and being followed by their fb friends.
> Also, when FB acquired Instagram in stock and cash, its own valuation was around $50B. Now it is 8 times that.
An in the not so distant future it will be a few orders of magnitude less. That's how stock market bubbles work, they inflate in a silly manner then burst leaving the rich richer and the others with grains of dust and suicidal tendencies.
Also, you have to also account for the synergetic benefits which FB provided to Instagram in terms of getting users quickly started by following and being followed by their fb friends.