Facebook (FB) Confirms Instagram Video; Shares Puke

Facebook (NASDAQ: FB) announced Thursday that its popular picture-sharing service Instagram will now allow video sharing.

Videos on the service can be up to 15 seconds long, which compare to 6 seconds for Twitter's Vine video-sharing service. Also, Instagram videos can have multiple clips and there are 13 different filters.

Rumors of Instagram video sharing have been in the market since earlier in the week.

While the service promises to be a hit with advertisers - eventually - investors are not overly enthusiast. Shares of FB down 2 percent intra-day.

Elsewhere in the market, Fusion-io, Inc. (NYSE: FIO) is rising 2.6 percent mid-day. Facebook is a major client of Fusion-io and the potential for increased storage needs from video sharing could be behind the move.

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