Instagram has a large user base, the visual appeal of the platform is engaging, and curiosity in the app has grown significantly over time, and together, they’ve contributed to Instagram’s net value rising above $110 billion as of January 2022.
The number of monthly Instagram users has recently surpassed 2.7 billion while the number of advertisers has risen to almost 2 million so it’s understandable if investors who have money to invest, want exposure to Instagram.
So, Is it possible to buy Instagram stock? The answer is no. Just like how investors cannot invest in stocks in other sectors such as Hulu, Subway, and SpaceX, you cannot purchase Instagram stock as it is not publicly traded.
Instagram is not a stand-alone company; Facebook (NASDAQ: FB), now Meta, owns Instagram so as I’ll explain, the most direct route to owning Instagram stock, is by buying Facebook stock.
History of Instagram
Instagram is a photo, and the video-sharing app was started in 2010 by Kevin Systrom, a computer programmer and American entrepreneur, and Mike Krieger, a software engineer, and Brazilian entrepreneur.
San Francisco was the starting point for development. After working on an HTML5 software called Burbn, the creators decided to focus on a photo-sharing app and titled it Instagram, an ode to Instant Camera and Telegram. They also received funding from their Burbn partners.
On Oct 6, 2010, the Instagram app was officially launched on Apple’s mobile iOS, and within one day, it had 25000 users. The app’s primary aim from the start was to feature photographs, particularly those taken on mobile devices.
In 2012, just before Instagram had planned its initial public offering (IPO), Facebook bought Instagram for $1 billion in cash and equity.
In November 2012, Instagram launched a limited-feature online interface. The company first released an app for the Amazon Fire device in June 2014, and then in 2016, it released an app for Microsoft Windows computers and tablets.
What is Instagram, and What Does It Offer?
Instagram is a video and photo-sharing program that lets users capture photographs, apply filters, and then share them with family and friends on social media.
The following are some of Instagram’s most notable features:
- Many Instagram users are attracted to the application because of its photo and filter features, which enable them to turn ordinary photos into professional-looking images.
- Instagram users can share 60-second videos with their followers using the video function (similar to TikTok). Businesses also use them as a form of advertising.
- This feature creates a live stream for users to interact with content creators in real-time streaming that does not fit within the 60-second video limitations.
- Instagram users may use IGTV to create an hour-long video that can be switched through like channels. The format of this feature is similar to that of standard television.
Who Owns Instagram?
As I’ve explained, Facebook (NASDAQ: FB), now Meta, owns Instagram. Facebook was famously started in a college dorm in 2004 by Mark Zuckerberg and he remains a major stockholder and CEO.
Unlike Instagram, in May 2012, Facebook had an initial public offering (IPO). Aside from Instagram, Facebook owns several other companies, including Onavo, Oculus VR (virtual reality), and WhatsApp.
Instagram’s user base had grown to almost 27 million users by March 2012. Instagram was introduced for Android phones in April 2012, and it was downloaded over one million times in less than one day. The company was also on the verge of securing a new round of funding with a valuation of $500 million at the time.
Systrom and Zuckerberg had met through Stanford events, and the two had been in contact at the start of Instagram’s meteoric surge in popularity.
In April 2012, Facebook made an offer to buy Instagram for $1 billion in cash and stock, with the condition that it be maintained independently. Facebook moved forward and purchased the company shortly after that and soon before Instagram’s planned IPO.
On October 28, 2021, Mark Zuckerberg, the CEO of Facebook, stated that Meta would be renamed. The new name reflects the company’s increasing aspirations beyond social media. To express its goal for working and playing in a virtual world, Facebook has adopted the new moniker based on the sci-fi world metaverse.
Instagram Stock Price
It is impossible to ascertain Instagram’s stock price because it isn’t listed, and its stocks are not publicly traded. Because Facebook purchased Instagram in 2012, there was never any publicly traded Instagram stock; hence there is no Instagram stock price.
However, investors can purchase Facebook (NASDAQ: FB) stock, which reflects the Instagram stock price. Facebook proves that social media can be a good investment in today’s society.
Instagram Stock Symbol
Because Facebook Inc., the parent business of Instagram, controls 100% of the shares, the stock symbol for Instagram is [NASDAQ: FB]. Investing in Facebook shares is essentially the same as investing in Instagram directly.
Stock Chart for Instagram
The chart below shows the Facebook/Instagram Stock Price Chart as well as the stock values of Facebook’s competitors. Facebook/Instagram TradingView
Unique Ways to Invest in Instagram Stock
While you cannot buy Instagram stock as it is not publicly traded, there are other ways to buy Instagram stocks.
Invest in Facebook Stock Directly
Instagram is a popular social network, according to the data. Facebook (NASDAQ: FB) shares can be purchased to invest in Instagram.
Facebook purchased Instagram for $300 million in cash and 23 million shares. Facebook purchased Instagram soon before the company’s IPO.
On October 25, Facebook, Inc. (FB) released mixed Q3 FY 2021 earnings results. Earnings per share (EPS) were higher than expected, rising 18.8% from the previous quarter. Revenue increased 35.1 percent YoY, missing analyst expectations.
- Earnings were $3.22 per share, compared to $3.19 per share projected by analysts.
- Revenue was $29.01 billion, compared to analysts’ expectations of $29.57 billion.
- Daily active users (DAUs) were 1.93 billion, compared to 1.93 billion projected by analysts.
- Monthly active users (MAUs) were 2.91 billion, compared to 2.93 billion projected by analysts.
- The average revenue per user (ARPU) was $10.00, compared to $10.15 projected by analysts.
Revenue for the fourth quarter of the fiscal year 2021 was expected to range between $31.5 billion and $34 billion, reflecting uncertainties about revisions to Apple Inc.’s (AAPL) iOS 14, as well as macroeconomic and Covid-19-related factors.
So, how do you invest in Facebook?
You must select how much money you want to put into the stock and how many shares you wish to purchase. This can be done using the following formula:
Number of Shares to Purchase = Total Amount Intended to Invest / Price per Share.
The NASDAQ website has the most up-to-date stock price information.
Select a broker
Charles Schwab, Webull, Markets.com, eToro, Skilling, AllyInvest, etc., are just a few of the many brokers available on the Internet.
Do some research to determine which one you want to work with and learn everything you can about the terms, fees, rates, order types, spreads, and deposit alternatives.
If you want to invest in Instagram stock, you’ll need to register an account with a brokerage firm if you do not already have an account. This is how you’ll go about purchasing your stocks.
Make a purchase
You can place an order directly on your broker’s Internet platform when you’ve identified a broker who meets all the criteria and objectives. Simply put, you must first create an account, authenticate it, fund it, and then purchase Facebook shares.
ETF Stocks
Other ways to invest in Instagram are through ETFs or exchange-traded-funded stocks, including FB stocks.
An exchange-traded fund (ETF) is a type of security that tracks an index, sector, commodity, or other asset and may be purchased and sold like a conventional stock on a stock market. From the price of a single commodity to a big and diverse collection of assets, an ETF can track it all. ETFs can also be designed to follow specific investing strategies. Individual stocks may produce large returns if you get lucky, but index ETFs are nearly hard to match as a low-risk long-term investment.
Fidelity MSCI Communication Services Index (NYSEARCA: FCOM)
The Fidelity MSCI Communication Services Index ETF (FCOM) is an exchange-traded fund that follows an index of well-known businesses such as Facebook, Alphabet Inc., the parent company of Google, Netflix, and Twitter.
As of June 2020, FCOM has roughly 100 companies, including small caps, making it a more varied option than the Communications Services Select Sector SPDR (XLC). FCOM could be appealing to investors who want to diversify their portfolios away from technology companies.
Communication Services Select Sector SPDR Fund (NYSEARCA: XLC)
The Communication Services Select Sector SPDR Fund (XLC) is a new addition to State Street’s popular legacy series of sector ETFs.
XLC provides investors with broad exposure to firms such as Facebook, Twitter, Netflix, and Google parent Alphabet. The fund was established in 2018 in response to a global change in index taxonomy that moved social media behemoths out of the technology sector and into a new “communications services” category.
Vanguard Communication Services Index Fund ETF (NYSEARCA: VOX)
Companies that offer communication services, as defined by GICS, are held by VOX. Traditional telecommunications firms, as well as media and internet service providers, were originally categorized in the consumer discretionary and technology sectors under the old GICS classification.
While the fund is heavily weighted in a few giants like Alphabet (Google), Facebook, and Verizon, it nonetheless invests in equities of various sizes. VOX, like all Vanguard ETFs, reports its holdings monthly rather than daily. Quarterly, the index is reviewed and rebalanced.
iShares Global Comm Services ETF (NYSEARCA: IXP)
IXP is a market-cap-weighted index of global communication services businesses, based on S&P’s selection of 1,200 worldwide equities. This exchange-traded fund (ETF) provides exposure to the global telecom industry by dividing its holdings between domestic and overseas equities.
Hence, IXP might benefit investors who want to apply a worldwide sector rotation strategy or overweight the sector as part of a tactical overlay.
IXP, like many telecom ETFs, will often give a high dividend yield, making it an appealing alternative for yield-hungry investors. IXP, like other telecom ETFs, is highly top-heavy; while the underlying portfolio contains over 50 different stocks, just a few of them account for the vast bulk of total assets.
Bank of Montreal MicroSectors (FNGS+ETN) (NYSEARCA: FNGS)
The MicroSectors FANG+ exchange-traded notes are designed to follow an index of so-called FANG stocks, which include Facebook, Amazon, Apple, Netflix, and Alphabet Inc., the parent company of Google. Alibaba, Baidu, NVIDIA, Tesla, and Twitter are among the five “core” firms covered by the fund, which also includes five additional technological growth equities.
Although the 58 basis point management fee may appear to be a significant amount to pay for a passive investment, it should not be a big problem for short-term trading.