By Dan Primack
June 21, 2013

FORTUNE — Facebook today rolled out its Instagram video product, 14 months after first acquiring the mobile photo-sharing app.

Investors reacted kind of like you’d expect them to act when you hype a “mystery” product launch that: (a) Leaks early, and (b) Is basically a knock-off of what Twitter was already doing with Vine.

Facebook (FB) shares finished the day down 1.64%, to close at $23.91 per share.

That means Facebook lost $968 million in market cap today. Obviously we can’t attribute all of that to the Instagram video launch — the broader markets took a tumble too — and Facebook obviously believes there is long-term value here.

But if you play out the simple top-line, Facebook lost around 26% more value today than it spent on Instagram in the first place.

Or, put another way, Facebook spent money to lose money. At least for now…

Sign up for Dan’s daily email newsletter on deals and deal-makers:

You May Like