Facebook Inc.’s Instagram is estimated to be worth more than $100 billion, if it were a stand-alone company, marking a 100-fold return for the app was purchased in 2012 by Facebook for $1 billion.
The photo-sharing platform, which reached 1 billion monthly active users earlier this month and is on track to exceed 2 billion users within the next five years, will likely help nudge Instagram revenue past $10 billion over the next 12 months,
{Matzav.com}
I don’t get it. How does the Company make a profit? From what?