Meta
Meta Platforms has launched its Twitter rival, Threads, and early signs are encouraging for the owner of Facebook and Instagram. More than 30 million users signed up to the microblogging app as of Thursday, according to Meta’s CEO Mark Zuckerberg, posting on the app itself.
Here’s what you need to know about Threads:
It is leveraging Instagram’s user base: The rapid pace of people signing up to use Threads suggests
Meta
(ticker: META) was right to look to use the power of more than two billion existing Instagram accounts.
Threads is branded as ‘an Instagram app’ on the
Apple
and Google Play stores. Usernames, profile pictures, and existing connections are brought over from Instagram when users create their Threads account.
Basing the app on Instagram, at least initially, looks like a smart choice from Meta as it looks to dethrone Elon Musk’s Twitter. It has already overtaken Twitter-rival Mastodon, which claimed more than 13 million users as of Thursday, having been created in 2016, although Threads has a way to go to catch up with Twitter’s more than 200 million daily users.
Brands and celebrities are on Threads: Another positive sign for Threads is early adoption from brands and celebrities who were already on Instagram, which in turn will likely bring in advertisers in the future.
Meta had singer Shakira and celebrity chef Gordon Ramsay lined up for the launch of Threads. Companies such as
Netflix
(NFLX) and
American Airlines Group
(AAL) were posting on the app on Thursday, suggesting corporate brands are eager to get in early on the launch of the newest social network, although there is currently no advertising on Threads.
Analysts at KeyBanc wrote in a research note on Thursday that they expect revenue from Threads to be “immaterial” for Meta, at least in the short term, as it concentrates on audience building before monetization.
Europeans aren’t on Threads: In less good news for Meta, the app didn’t launch in the European Union and the company doesn’t have a timeline for when Threads will be available in the bloc.
The delay appears to be related to the EU’s technology regulations, which limit how user data can be shared across different platforms. Connor Hayes, Instagram’s vice president of product, told The Wall Street Journal that Meta needed more time before launching Threads in the EU.
Write to Adam Clark at adam.clark@barrons.com
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