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Wait a second, Instagram's worth WHAT now?

VIDEO2:1902:19
Cramer on Instagram: $35 billion... who's laughing now?

Citigroup thinks photo sharing service Instagram is now worth $35 billion—nearly double its previous valuation and a price tag the bank characterized as "conservative."

Facebook bought Instagram in late 2012 for a final price tag of $715 million, meaning the service is now worth about 49 times what the social network paid for it.

In a research note Friday, Citi said the higher valuation was "due to faster audience growth as well as continued monetization gains by social media properties. "

Citi raised its price target for Facebook to $91 from $86 on the basis of Instagram's higher valuation.

At $35 billion, Instagram would be worth about 50 percent more than Twitter, and would also be worth more than social networks like Yelp and LinkedIn.