This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Expect Facebook to Lose a Ton of Money on Instagram

When you're Facebook, you can say something really, really dumb such as:

You agree that a business or other entity may pay us to display your username, likeness, photos (along with any associated metadata), and/or actions you take, in connection with paid or sponsored content or promotions, without any compensation to you.

And then backtrack by saying, That's not what we really meant! As is often the case, David Pogue summed up that inanity quite well in The New York Times.

Bottom line, there's not enough there there with Instagram to give it the license Facebook has to play chicken with its user base.

What does Instagram do? Nothing that's all that exciting. It takes the idea of adjusting the tint or contrast on your old television set and applies it to "photography" on mobile devices. Talk about ZERO barriers to entry. Twitter had to rush photo filtering out last week and it's pretty close to being as "good" as Instagram is now.

We're getting to a point with apps where only the best, most stimulating, most versatile and most useful will survive. One-trick ponies such as Instagram will fall by the wayside.

What's the future there? Allow a brand to promote a picture? Please -- Instagram is the glorified Foursquare of photo streams in the making.

I'm not sure why I ever used Instagram. Sucks to admit this, but I think it was because everybody thinks it's so cool. I'm guessing that after millions of Instagram users freaked out Tuesday they asked themselves the very same question -- why do I use this app?

The answer will ultimately spell Facebook's first major writedown as a public company and Zuckerberg's second biggest mistake after focusing on mobile two years too late.

--Written by Rocco Pendola in Santa Monica, Calif.
Rocco Pendola is TheStreet's Director of Social Media. Pendola's daily contributions to TheStreet frequently appear on CNBC and at various top online properties, such as Forbes.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FB $118.57 0.00%
GOOG $698.21 0.00%
AAPL $93.64 0.00%
TSLA $241.80 0.00%
YHOO $36.53 0.00%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs