Facebook's (FB) Instagram sees slowed user downloads after spectacular 2H18 gains, and Checkout is a massive opportunity -- Cascend Research
Cascend: "Our data suggests Facebook's (FB) Instagram has slowed a bitafter 2H18 but is still accumulating -- up on a M/M basis but down Q/Q from the huge 4Q18 ramp. Instagram almost certainly picked up substantial share with new users from Snapchat (SNAP) in 2H18, although SNAP has now stabilized. Instagram's user satisfaction has been steadily at a high level over the past several years...We believe the average user could eventually spend $200/year in Checkout, yielding $8b annually (did we mention high margins?). With just over $80b in CY20 revenues expected, this is an additional 10% not in analyst models. If they can charge brands 5% (they are originating an online sale) our expectations could be low by 60%. Watch out, Amazon (AMZN)."