Most thought that Facebook was a bit crazy when it purchased image sharing service Instagram for $1 billion, but now the company is worth upwards of $35 billion according to a new valuation estimate.
Citigroup has performed the valuation, with the previous valuation pegging Instagram at being worth a still-impressive $19 billion. The increased value is coming off of the news that Instagram now features over 300 million active monthly users, and is growing much faster than most have anticipated.
The $35 billion valuation is still quite speculative, withi Citigroup's own analysts weary of it, as it depends on multiple factors, but they're still optimistic that the service is undermonetized. Citigroup believes that Instagram could provide Facebook with around $2 billion in annual revenue eventually.