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Meta recently launched a new app through Instagram called Threads. Threads is a text based social network created to rival Twitter. This app has been rumored for awhile now, and with Twitter looking especially weak lately, Threads was able to be launched at essentially the perfect time. While many people thought threads would be successful, I don't think anyone could have predicted how successful its launch actually was.
Here's some numbers for you. In the first four hours of Threads launch, it got 5 million sign ups. In the first 7 hours, it got 10 million. In the first day, it got 30 million sign ups. Now, threads is right at 100 million users. That is absolutely insane. Twitter currently has around 400 million users, but it'd be hard to believe that Threads won't be there soon.
As a shareholder of Meta, what I really care about with Threads is will it make my shares go up in value. The answer to this question, so far, is yes. When threads first came out, Meta's stock did go up. What I really want to know though is will this create long-term share growth for Meta. I believe that the answer to this is yes as well. While threads does not currently have ads on the platform, ads are obviously going to be there soon enough. This gives Meta another stream of revenue. How large this revenue stream will be depends on how large they are able to grow the platform, but I do believe that threads will be profitable for Meta.
One thing that I have seen shareholders worry about is that people's time on Instagram will end up decreasing because they will start spending some of that time on threads now. While that could be true, it also could end up being the opposite. It could be that this leads to people spending more time on Meta's platforms. Instead of people being on Instagram and then leaving to go on Twitter, they will leave to go on Threads. Instead of taking away from the time people spend on Instagram, they will be spending the same time on Instagram but just using Twitter less or not at all.
As a shareholder of Meta, I believe that the most important thing about Threads' launch is that it shows that Meta can still build more things very quickly. It shows the innovation at Meta. Last year, a lot of the employees were severely unmotivated, and I think that the launch of Threads is really important for that.
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