How Facebook's tanking stock is hurting Instagram

Instagram hit the jackpot when it was bought by the social network for $1 billion — but the startup's value is dwindling as Facebook's stock slides

Instagram
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Facebook caught the tech world off guard in April when it bought the photo-sharing app Instagram for $1 billion — a surprising sum for "a smart set of photo filters and the tools to share them," says Alex Klein at The Daily Beast. But that was back in the good old days when investors were breathlessly hyping Facebook's IPO and prepared to cut the social network a little slack. Since the failed IPO, Facebook's share price has been cut in half, and no one may regret the buyout more than Instagram, whose value has plunged alongside Facebook's. Here, a guide:

How does Facebook's share price affect Instagram?

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