We may or may not be in a bubble (though I think we are) but I am sick of people using Instagram as their proof of this. Instagram was a purely defensive purch

We may or may not be in a bubble (though I think we are) but I am sick of people using Instagram as their proof of this. Instagram was a purely defensive purchase by Facebook. They were not buying them for their revenue, or their ability to make money in the future. They were buying them because they thought there was some chance (5% maybe?) that they could become a big competitor with them. They spent 1% of their value with 70% of that being stock to take out the possibility of a quality company taking on their entire business. We can debate the merits of buying competition to kill them, but this is not new, and it is clearly far different than valuing them per user or per revenue. Facebook wasn't buying their users. They were killing their competition.