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Facebook stock gains after KeyBanc says Instagram may be 'primary growth driver by 2020'

Facebook Inc. FB, +zero.71% shares are up zero.3% in Monday morning trading after KeyBanc analyst Andy Hargreaves wrote that Instagram could be the corporate's "primary growth driver" come 2020. He sees Instagram producing 27% of incremental advert earnings this 12 months and 58% through 2020. Hargreaves additionally projects that Insatgram can have more than 1.four billion per 30 days lively customers and more than $22 billion in annual earnings through 2020. "As core Facebook matures, Instagram is the key to the next leg of growth," he wrote. "Core Facebook is clearly maturing, with ad load reaching a saturation point and pricing the last lever to pull, so we see Instagram driving an increasing portion of incremental advertising growth." The inventory is up 27% over the past 12 months, while the S&P 500 SPX, +zero.12% has received 14%.