Meta’s Threads is a serious threat to Elon Musk-owned Twitter, analysts say
Meta’s new app, Threads, has made a big splash in the social media world, quickly amassing over 30 million sign-ups within 18 hours of its launch. This has positioned it as the first major rival to Elon Musk’s Twitter, as Threads leverages its access to billions of Instagram users and bears a striking resemblance to its competitor. Unofficially dubbed as the “Twitter-Killer,” Threads quickly claimed the top spot as the most downloaded free app on Apple’s App Store in both the UK and the US.
The release of Threads comes after months of heated exchanges between Meta CEO Mark Zuckerberg and Elon Musk, even to the point of entertaining the idea of a real-life mixed martial arts fight between the two in Las Vegas. With its stellar execution and user-friendly interface, Threads has delivered a major blow to Twitter, which has faced criticism for a series of chaotic decisions since Musk’s $44 billion acquisition. One notable move by Musk was limiting the number of tweets users can read per day, which has created an opportunity for a well-funded competitor like Meta to gain traction.
Experts and analysts have noted the timing of Threads’ release, which aligns with the turmoil at Twitter after its tweet limit change. With its access to Instagram’s vast user base and strong advertising capabilities, Threads has the potential to unseat Twitter as a dominant social media platform. Currently, competitors like Mastodon and Bluesky have had limited success in challenging Twitter, while Threads has the advantage of being built upon the popular Instagram platform.
However, Threads does come with limitations. While it can be used as a standalone app, users can log in using their Instagram credentials, making it an easy addition for Instagram’s massive user base. Nonetheless, Threads lacks certain features found on Twitter, such as hashtags, keyword searches, and real-time event following. It also does not yet have a direct messaging function or a desktop version, which may deter certain users who rely on these features. Despite these limitations, Threads has gained traction, with Facebook CEO Mark Zuckerberg himself amassing a million followers on the platform.
As of now, there are no ads on Threads, and Zuckerberg has stated that monetization will only be considered once the app reaches 1 billion users. However, existing ad relationships from Instagram and Facebook are expected to contribute to Threads’ revenue. This gives the app an advantage over Twitter, as Facebook is a bigger player in the ad market and seen as a more stable choice for advertisers.
Some experts have drawn parallels between Threads and Meta’s successful integration of features from other platforms, such as Instagram’s Stories and Reels, which borrowed elements from Snapchat and TikTok, respectively. This integration has led to Meta’s stock price doubling this year, with at least four brokerages raising their price targets. However, Meta’s shares experienced a slight decline amid a broader market selloff.
Threads is currently available in over 100 countries, but its launch in the European Union is on hold as Meta works to address data sharing and regulation concerns between Threads and its Instagram app.
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FAQs:
Q: What is Threads?
A: Threads is a social media app launched by Meta that aims to rival Twitter. It gained significant attention by accumulating over 30 million sign-ups within 18 hours of its launch.
Q: How does Threads differ from Twitter?
A: Threads leverages its access to billions of Instagram users and shares a similar look to Twitter. However, it lacks certain features found on Twitter, such as hashtags, keyword searches, and real-time event following.
Q: How does Threads generate revenue?
A: Currently, there are no ads on Threads. Facebook’s existing ad relationships from Instagram and Facebook are expected to contribute to Threads’ revenue once it reaches 1 billion users, according to Meta CEO Mark Zuckerberg.
Q: Why is Threads considered a threat to Twitter?
A: Threads has gained traction as a potential rival to Twitter due to Meta’s well-executed launch and its access to Instagram’s vast user base. Twitter has faced criticism for various decisions, including limiting the number of tweets users can read per day.
Q: Will Threads be launched in the European Union?
A: As of now, Threads will not be launched in the European Union. Meta is currently working on addressing data sharing and regulation concerns between Threads and its Instagram app before launching in the EU.
Analysts warn that Meta’s Threads poses a significant challenge to Twitter, owned by Elon Musk
Meta’s new app, Threads, has quickly gained traction, accumulating over 30 million sign-ups within just 18 hours of its launch. This development poses a significant threat to Elon Musk’s Twitter, as Threads leverages its access to billions of Instagram users and shares a similar aesthetic with its rival. Often referred to as the “Twitter-Killer,” Threads climbed to the top spot for free apps on Apple’s App Store in both the UK and the US on Thursday.
The release of Threads comes amid ongoing feuds between Meta CEO Mark Zuckerberg and Twitter’s Musk, with the two even threatening to engage in a real-life mixed martial arts fight in Las Vegas. “The cage match has begun, and Zuckerberg has delivered a major blow. It’s exactly what you would expect from Meta: exceptional execution and a user-friendly interface,” said Jasmine Enberg, principal analyst at Insider Intelligence.
Twitter has witnessed several competitors emerge since Musk’s $44 billion acquisition of the platform last year, exacerbated by a series of tumultuous decisions that have alienated users and advertisers. Musk’s recent move involved capping the number of tweets users can read per day. Taking advantage of Twitter’s missteps, Threads has positioned itself as a formidable competitor, backed by Meta’s substantial financial resources and advertising prowess.
“Meta’s release of Threads arrived at the perfect time to give it a fighting chance against Twitter,” stated Niklas Myhr, professor of marketing at Chapman University. “Built upon the massive user base of Instagram, if Threads gains traction, advertisers will not be far behind.” While other Twitter-like apps, such as Mastodon and Bluesky, have achieved limited success, Threads’ integration with Instagram’s extensive user base and Meta’s financial backing have the potential to fuel its growth.
Nevertheless, Threads does have limitations. Although it operates as a standalone app, users can log in using their Instagram credentials, making it a seamless addition for Instagram’s two billion monthly active users. Yet, compared to Twitter, Threads currently lacks features such as hashtags, keyword search functions, real-time event tracking, and direct messaging capabilities. It also lacks a desktop version, which some users, particularly business organizations, rely on. Users have voiced the need for more control over their main feed, as currently, they have limited influence over its content.
In response to Threads’ launch, Twitter CEO Linda Yaccarino, who was hired by Musk in May to boost advertiser confidence, emphasized the importance of everyone’s voice on the platform. “We’re often imitated, but the Twitter community can never be duplicated.” Presently, Threads does not display any advertisements, and Zuckerberg has stated that monetization will only be considered once the app reaches one billion users. Nonetheless, Meta’s existing ad relationships with Instagram and Facebook are expected to contribute to Threads’ revenue stream.
Analysts have drawn comparisons between Threads and Meta’s successful integration of features from platforms like Snapchat and TikTok into Instagram, such as Stories and Reels. As a result, several brokerages have raised their price target for Meta, whose shares have already doubled in value this year. Despite a broader market selloff, Meta shares were up 3% on Wednesday ahead of Threads’ launch but fell 0.3% on Thursday. The app is currently available in over 100 countries, excluding the European Union, as Meta navigates regulatory challenges concerning data sharing between Threads and Instagram.