Meta shares increase after Threads’ release, but experts see little change for the price in the immediate future.
On Wednesday, Meta Platforms unveiled Threads, a service that directly competes with Twitter. In a matter of hours, the new service had attracted millions of users. According to META CEO Mark Zuckerberg, 10 million people signed up for the program in just seven hours.
Celebrities including Jennifer Lopez, Kim Kardashian, and U.S. Representative Alexandria Ocasio-Cortez were among the first to sign up for the new platform.
At a time when Twitter is undergoing a metamorphosis, the social media giant intends to monetise a new platform using its sizable user base and advertising expertise. Similar to Elon Musk’s business, Threads enables users to publish brief text messages, re-post them, and leave comments.
“Our vision with Threads is to take what Instagram does best and expand that to text, creating a positive and creative space to express your ideas. Just like on Instagram, with Threads you can follow and connect with friends and creators who share your interests – including the people you follow on Instagram and beyond,” posted on a blog, Meta said.
Shares of Meta finished over 3% higher on Wednesday before rising 1.7% more in pre-open trade on Thursday.
Despite a favorable market response, Wells Fargo analysts predict that the debut won’t have much of an immediate impact. Wells Fargo analysts peg the annualized impact at 1-3% of revenue and EPS at maturity.
