Several media report that the Facebook buyout of Instagram implies a value of $104 billion for the social network about a month before its IPO. Many analysts have set the value that high. The news may help offset concerns that Facebook’s revenue is still very modest.
Skepticism has also arisen about the lack of sales that Facebook gets from its mobile application, and potential competition for Google’s (NASDAQ: GOOG) Google+ product. To counter that, Facebook value advocates say the company controls over a quarter of all US display ad inventory. The amount of time people spend on Facebook also tops any other major site, according to several measurements of online behavior.