Trusted Reviews is supported by its audience. If you purchase through links on our site, we may earn a commission. Learn more.

Instagram revalued at $35 billion, nearly double previous estimate

Instagram is now valued at an incredible $35 billion – that’s just over £22 billion in Blighty tender.

The estimate comes courtesy of Citigroup, revealed in a note released earlier this morning.

What’s surprising about the new figure is that it’s significantly higher than the previous Citigroup valuation that put Instagram’s worth at a far more paltry $19 billion.

Citigroup says the value re-think is in response to recent news that Instagram had finally overtaken social rival Twitter in terms of total monthly active users for the first time ever.

Related: Instagram fake account purge plays havoc with celeb followers

Just last week we heard that Instagram now boasts upwards of 300 million active users, while Twitter users tally up at around 284 million.

“On the heels of Instagram’s announcement last week that it had reached more than 300mn users, we examine its potential financial contribution if it were fully monetised given its user base, growth, and engagement metrics,” read the Citigroup note.

“Using what we believe to be conservative assumptions around user growth and monetisation, we believe Instagram is worth $35bn.”

This also prompted Citigroup to increase the price target for Facebook (which acquired Instagram back in 2012) from $86 to $91.

Zuckerberg will likely be chuffed with the news, as his firm paid just $1 billion for Instagram two years ago.

Why trust our journalism?

Founded in 2003, Trusted Reviews exists to give our readers thorough, unbiased and independent advice on what to buy.

Today, we have millions of users a month from around the world, and assess more than 1,000 products a year.

author icon

Editorial independence

Editorial independence means being able to give an unbiased verdict about a product or company, with the avoidance of conflicts of interest. To ensure this is possible, every member of the editorial staff follows a clear code of conduct.

author icon

Professional conduct

We also expect our journalists to follow clear ethical standards in their work. Our staff members must strive for honesty and accuracy in everything they do. We follow the IPSO Editors’ code of practice to underpin these standards.

Trusted Reviews Logo

Sign up to our newsletter

Get the best of Trusted Reviews delivered right to your inbox.

This is a test error message with some extra words