Instagram + video = Less than InstagramJune 20, 2013: 4:16 PM ET
Instagram video fails to excite Facebook investors.
FORTUNE -- Facebook today rolled out its Instagram video product, 14 months after first acquiring the mobile photo-sharing app.
Investors reacted kind of like you'd expect them to act when you hype a "mystery" product launch that: (a) Leaks early, and (b) Is basically a knock-off of what Twitter was already doing with Vine.
Facebook (FB) shares finished the day down 1.64%, to close at $23.91 per share.
That means Facebook lost $968 million in market cap today. Obviously we can't attribute all of that to the Instagram video launch -- the broader markets took a tumble too -- and Facebook obviously believes there is long-term value here.
But if you play out the simple top-line, Facebook lost around 26% more value today than it spent on Instagram in the first place.
Or, put another way, Facebook spent money to lose money. At least for now...
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