Facebook Investors ‘Like’ Cowen’s $33B Valuation on Instagram

Shares of Facebook (FB) jumped after Cowen Group analysts said Instagram is now worth $33 billion, making it TheStreet's Move of the Day. The valuation call follows Citigroup's $35 billion call on Instagram. Cowen believes the number of users on the photo-sharing service will more than double in five years. The firm wrote in a note to investors Thursday morning that Facebook-owned Instagram has a large, fast growing, and highly engaged user base. Cowen believes Facebook will generate $5.8 billion in revenue in the year 2020. The firm maintained its OUTPERFORM rating with a $91 price target on shares of the social media giant. Shares of Facebook ended the day higher on heavy volume as one of the top gainers on the S&P 500. TheStreet's Kurumi Fukushima reports in New York.