NEW YORK (TheStreet) -- Facebook's (FB) - Get Report photo-sharing app Instagram is launching new features to help businesses distinguish themselves from regular users in an effort to boost advertising revenue, Bloomberg reports.
Shares of Facebook are declining by 0.95% to $118.25 in late afternoon trading on Tuesday.
Analysts consider Instagram to be a key source of growth for Facebook.
The app will now let businesses create special profiles that will allow customers to contact them directly instead of posting public comments, Bloomberg said.
Instagram will also show business users new data on which posts are receiving the most engagement and give them the opportunity to turn posts into ads.
"We now have more than 200,000 advertisers on Instagram, the vast majority of them are small businesses," Instagram COO Marne Levine told Bloomberg, "We want to help them stand out to their customers more."
The app has 400 million monthly users and Facebook is working to keep up its pace of revenue growth.
The new tools are similar to those on Facebook and Twitter (TWTR) which allow users to pay social network platforms to promote certain posts.
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Separately, TheStreet Ratings Team has a "Buy" rating with a score of A- on Facebook stock.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: FB