Twitter rival Threads has surpassed OpenAI’s ChatGPT as the fastest downloaded app in history, attracting over 30 million registered users within 24 hours of its launch. This remarkable growth has prompted Bank of America analysts to reiterate a Buy rating on Meta Platforms, the company behind Threads. The surge in downloads was fueled by numerous celebrities joining the platform and sharing screenshots on their other social media accounts. In a client note, the analysts stated that the strong early user traction exceeded their expectations and is likely to continue for a few more days. They also highlighted the average time spent per user as an important metric for measuring the platform’s stickiness and potential for future success.
Despite the incredible success of Threads, it was reported that Twitter has sent a cease-and-desist letter to Meta, threatening legal action. However, the analysts believe that this threat is unlikely to have an immediate impact on the app’s growth. They also mentioned the possibility of antitrust issues arising if Threads were to reach a size comparable to or surpassing Twitter, due to potential cross-platform data use.
The Bank of America analysts further noted that Meta and its CEO Mark Zuckerberg have ambitious plans for the new project. They projected a revenue opportunity of $2 billion to $3 billion by 2024, assuming that Meta captures 250 million average users, achieves revenue growth starting next year, and reaches 50% of Twitter’s average revenue per user in 2021. Even if Meta delays the introduction of ads to focus on app traction, the analysts believe that the company’s execution history and user engagement will drive monetization at or above Twitter levels.
Meta Platforms shares traded slightly lower by 0.7% in early Friday trading.
Frequently Asked Questions (FAQs) Related to the Above News
What is Threads?
Threads is a Twitter rival app developed by Meta Platforms, the company behind Facebook. It aims to provide users with a more focused and intimate way of sharing updates with close friends and family.
How many registered users did Threads attract within 24 hours of its launch?
Threads attracted over 30 million registered users within 24 hours of its launch, making it the fastest downloaded app in history.
Why did Threads experience such rapid growth?
The surge in downloads can be attributed to numerous celebrities joining the platform and sharing screenshots on their other social media accounts. This led to increased interest and adoption among users.
What did Bank of America analysts say about Threads' early user traction?
Bank of America analysts stated that the strong early user traction of Threads exceeded their expectations and is likely to continue for a few more days. They also emphasized the importance of measuring average time spent per user as an indicator of the platform's stickiness and potential for future success.
What action did Twitter take in response to Threads' success?
Twitter sent a cease-and-desist letter to Meta, threatening legal action. However, the analysts believe that this threat is unlikely to have an immediate impact on the app's growth.
What concerns were raised regarding Threads potentially reaching a size comparable to or surpassing Twitter?
The analysts mentioned the possibility of antitrust issues arising due to potential cross-platform data use if Threads were to reach a size comparable to or surpassing Twitter.
What revenue opportunity did the Bank of America analysts project for Meta Platforms and Threads?
The analysts projected a revenue opportunity of $2 billion to $3 billion by 2024, assuming Meta captures 250 million average users, achieves revenue growth starting next year, and reaches 50% of Twitter's average revenue per user in 2021.
How do the analysts view Meta's monetization potential for Threads?
The analysts believe that even if Meta delays the introduction of ads to focus on app traction, the company's execution history and user engagement will drive monetization at or above Twitter levels.
How did Meta Platforms shares perform in early Friday trading?
Meta Platforms shares traded slightly lower by 0.7% in early Friday trading.
Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.
