It’s Been Two Weeks Since Threads Launched — How Is the Latest Meta App Doing?

Key takeaways

• New social media app Threads has seen a drop in engagement and average time spent on the app, according to tracking firms
• Meta CEO Mark Zuckerberg posted that he’s confident about the app’s future after a wildly successful launch
• Meta’s share price climbed 7% in the week following the Threads launch and is now at a 153% gain in 2023

Twitter, Schmitter — there’s a new social media app in town, and Threads isn’t taking any prisoners. After a monumentally successful launch, can the Meta-owned Twitter copycat retain users and engagement? Early signs show the app is on a knife’s edge right now, but it’s a good thing the stock market doesn’t seem to care. Here’s the latest.

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How is Threads doing?

Honestly? Now the initial buzz has worn off, Threads is struggling a little. Despite the app managing to break records for the fastest app to reach 100 million downloads (it took just five days) and stealing active user share from Twitter, tracking firms are now saying the number of daily active users is down 20%, while the average time spent on the app per user has halved.

Threads rolled out its first major update this week, which includes translation for Threads into different languages and a dedicated tab on the activity feed so users can see who’s followed them. But after the drop in engagement, is it enough to keep users online?

Meta CEO, Mark Zuckerberg, was upbeat about the app’s future. In a Thread post, he said “Early growth was off the charts, but more importantly, tens of millions of people now come back daily… The focus for the rest of the year is improving the basics and retention”.

Meta’s market performance

Meta’s share price has skyrocketed this year to become one of the main drivers that boost the Nasdaq and S&P 500. Meta stock has climbed a massive 153.7% so far in 2023. The company’s share price rose 7% the week after the launch and has climbed higher since to hit $316.

What’s more is that some analysts are upgrading their targets for Meta’s share price, revenues and earnings estimates after the Threads launch. Even if the initial furore has died away, investors can clearly see a bright future for the app — and Meta.

Meta is set to release its second-quarter earnings next week.

The bottom line

Threads may have seen a drop off in user engagement, but that’s only to be expected after such a massive launch. While Meta works on keeping that momentum going, the company remains one of the darlings of Wall Street as investors predict heady highs for the company’s future revenue and earnings. Elon Musk must be seething.

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