Facebook's Instagram Most Important Social Network for Teens, Munster Says; Shares 1% Higher

Shares of Facebook

are trading higher by 1.65 percent higher to $58.19 after Gene Munster, top analyst at Piper Jaffray, made bullish comments on Instagram. Piper Jaffray conducted a survey of 7.5 thousand teens on what was the most important social network. Teens voted:

Remember, Facebook

back in April 2012 for $1 billion. The acquisition was questioned by pundits, but now no one can argue the deal a brilliant move. Munster believes the Instagram success adds credibility to the WhatsApp and Oculus acquisitions. The analyst also feels Facebook's ten year sustainability will be fueled by acquisitions, as its core business is “fleeting” due to competition from other social platforms. Munster reiterated an Overweight rating and has a $67 price target on shares of Facebook. Shares had been down 13.6 percent from February's closing price before the Munster comment's. The drop took shares nearly to the earnings gap from January 29th.