I had been wondering how a product like Instagram would ever make money. Now we'll never find out. I guess traction really does trump all other business metrics.
It's beginning to remind me of the late 90's where the only thing that mattered was number of "eyeballs" on your site, sound business plans/profits be damned.
The difference being that the burn rate of these companies is minuscule compared to what was going on the late 90s. They built a 30 million user social network with 5 engineers. This changes the dynamic tremendously.
