Image: Threads logo. Meta has launched a Twitter-killer with its new real-time online conversation app, Threads.
By Brian Nelson, CFA
Big cap tech continues to innovate and encroach upon each other’s territory, and the latest example is Meta’s (META) expansion into real-time online conversation with its new app Threads that competes directly with Elon Musk’s Twitter. Consumers have been looking for an alternative to Twitter after Musk made a number of big changes to keep the bird app afloat, and Meta’s CEO Mark Zuckerberg is now pouncing on the opportunity to take share in this area.
Unlike other rival platforms such as Truth Social (DWAC), users of Threads will be able leverage Instagram to log in to Threads and easily find and connect with their Instagram followers on the new app. Millions have already signed up to Threads and so far the reaction has been positive, with many preferring the friendlier Threads over Twitter. One big drawback of Twitter has been the perception that people are “mean” there, while another is that many with great content have found it difficult to grow their audience.
Meta’s launch of Threads may not be too big of a needle-mover at Meta when it comes to new advertising dollar spending, but we like the incremental move toward creating an ecosystem of interconnected apps and properties. We think Twitter’s days are numbered, with the bird app already shedding a large percentage of its workforce just to keep the lights on. We might see a cage match between Musk and Zuckerberg after all.
Tickerized for holdings in the SOCL.
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Brian Nelson owns shares in SPY, SCHG, QQQ, DIA, VOT, BITO, RSP, and IWM. Valuentum owns SPY, SCHG, QQQ, VOO, and DIA. Brian Nelson’s household owns shares in HON, DIS, HAS, NKE, DIA, and RSP. Some of the other securities written about in this article may be included in Valuentum’s simulated newsletter portfolios. Contact Valuentum for more information about its editorial policies.
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