Apparently Meta Could Launch Its Twitter Competitor, Meta Threads, as Early as July
Key takeaways
- Meta is allegedly gearing up to launch Threads, a Twitter competitor, via its Instagram user base
- The move comes as advertisers fled Twitter after a series of controversial moves once Elon Musk took over the company
- Meta stock was up 1.35% at the end of last week
Want to know what exactly spurred on the public spat between Meta CEO Mark Zuckerberg and Twitter owner Elon Musk? It was the news that Meta is apparently releasing a competitor to Twitter called Threads as soon as July. Meta stock rose last week, but Twitter’s valuation has reportedly languished since Musk took over. Here’s the lowdown.
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What is Meta Threads?
Rumors started swirling in March, but all Meta confirmed was that it was “exploring a standalone decentralized social network for sharing text updates”, similar to Mastodon, the Twitter alternative that grew in popularity when Musk took over Twitter in October 2022.
More details have emerged; Meta plans to launch its own short-form blogging platform, which it will promote through Instagram and expects to reach “tens of millions” of users via the popular images and videos app.
The rumored launch started the beef between CEO Mark Zuckerberg and Twitter owner Elon Musk after Threads was apparently being pitched as a “sanely run” platform after a string of controversies hit Twitter once Musk took the reins.
Musk isn’t happy — in fact, he’s so upset that he publicly challenged Zuckerberg to a cage fight, with the Meta CEO actually accepting. (It’s been a whole thing.)
What was the market reaction?
Cage fight aside, which didn’t seem to impact the stocks, Meta pulled off a share price rise after a tricky week elsewhere in the stock market. Meta closed the week off 1.35% higher on Friday, buoyed by the news of a potential new social media platform — and the advertising revenue that could come off the back of it.
The stock has had an astronomical rise this year, gaining a massive 131% in 2023 thanks to Zuckerberg’s ‘year of efficiency’ (read: mass layoffs) and the generative AI boom.
Twitter was delisted when Musk took over, purchasing the platform for an eye-watering $44 billion. However, the company is now said to be worth in the region of $14.75 billion — less than a third of what Musk paid. Ouch.
The bottom line
A Twitter competitor is a savvy move from Zuckerberg after seeing advertisers run for the hills as Twitter burned. Launching a new social media is never easy, but Meta has a track record for successful adoptions — not to mention using Instagram’s captive audience should boost sign-ups.
Cage fights aside, Elon Musk’s company Tesla has been one of the major winners on the stock market this year. You can get in on the action with Q.ai’s Emerging Tech Kit, which helps you navigate the volatile tech market and make smarter investing decisions. The secret sauce is a nifty AI algorithm that does the heavy lifting so you don’t have to, helping you to build wealth.
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