Its shares closed down 13 cents or 0.5 percent at $25.91 on the Nasdaq, in line with the broader market. Facebook shares sank about 2.5 percent lower in early trade, before rebounding to $25.71 in the early afternoon, off 1.2 percent. Earlier this month, Instagram backed off planned policy changes that appeared to clear the way for the mobile photo sharing service to sell pictures without compensation, amid protests from users. Changes to the privacy policy and terms of service had included wording that appeared to allow people's pictures to be used by advertisers at Instagram or Facebook world-wide, royalty-free.
Twitter and Instagram forums buzzed over the phrasing, as users debated whether to delete their accounts before the new rules kicked in. Facebook acquired Instagram earlier this year. The original price was pegged at $1 billion but the final value was less because of a decline in the social network's share price.