Is Threads Dying, Or Has Elon Musk Just Handed Zuck Market Share on a Platter?
Key takeaways
- Meta’s new app Threads has seen its daily active user base plunge 70%
- Meta stock has fallen 6.1% in the last five days
- Twitter’s rebrand to X could send more users to Threads in the coming weeks
Threads, Meta’s take on Twitter, had a dazzling rise in popularity after a mega-launch made the service the fastest to reach 100 million users. But interest in the latest social media app has waned recently, with new users and time spent on the app declining. Zuckerberg might be thanking his lucky stars after Twitter made a significant change — here’s the latest.
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Is Threads dying off already?
At the start of the month Threads was the new superstar social media platform, beating out OpenAI’s ChatGPT to reach 100 million users in just five days.
But research shows the enthusiasm has waned. New data from Sensor Tower found that the number of Threads daily active users has plunged for a second week to a low of 13 million — a 70% drop from when the app first launched. Twitter has roughly 200 million daily active users in comparison.
The steep drop may have spooked investors, along with earnings season making Wall Street jumpy. Meta’s share price has declined 6.1% in the last five days, but overall the stock has absolutely flown in 2023, gaining 134% this year so far.
How can Threads survive?
Elon Musk has thrown a curveball into the mix: he’s officially rebranded Twitter as X, replacing the iconic bird logo with a ‘simple’ X. Twitter had some valuable brand capital — and some think it could be the final nail in the coffin for users who had put up with enough changes since Musk took over last year. This could potentially boost Threads’ user base in the coming weeks.
Looking at the bigger picture, threads has 116 million users and became the fastest app to hit 150 million downloads since Pokemon Go launched in 2016. Those are great figures for any new social media app.
Not to mention, Threads hasn’t launched in the EU because of data privacy concerns. If Meta can reach an agreement, dozens of countries will be able to sign up for the app.
The bottom line
The drop in daily active users and time spent on Threads might look concerning to investors, but it’s honestly too early to tell whether it’s heading the same way as Clubhouse or if Threads could still be a success. Meta has the resources, and the experience, to build Threads into another integral part of the social media landscape.
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