Twitter Competitor ‘Threads’ To Launch On July 6th – Meta Stock Keeps Rising

Key Takeaways

• Meta is launching a competitor app to Twitter called Threads, and will allow users to transfer their Instagram usernames and followed accounts directly over
• It’s the latest app to aim to take down Twitter, which has been rolling from controversy to controversy since Elon Musk took over
• Meta’s stock price has been on a tear this year, gaining almost 130% since the start of January

Things have been going from bad to worse over at Twitter. Since Elon Musk took it private for the princely sum of $44 billion, it’s been basically non-stop controversy. That’s nothing unusual for Musk, some would argue it’s part of his business strategy, but so far it doesn’t appear to be panning out too well.

From laying off 75% of the workforce, backlash against the overhaul of the blue tick, conspiracy theories running wild, Elon Musk himself getting into hot water on an almost weekly basis, and the latest throttling of users tweet access, it’s not been smooth sailing.

And that poses a serious opportunity for the competition, which Meta is looking to pounce on with the release of their new text-based social media platform called Threads.

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Meta’s new Threads platform to be launched on July 6th

Meta has been working on a competitor to Twitter for a while. Codenamed “Project 92” while it was in development, Meta identified the opportunity for a “text based conversation app” that – to use the words of a top executive in describing the project to employees – “is sanely run.”

The company is looking to launch the service hard out of the gate, with anyone with an Instagram account able to sign up with their same username and information.

Not only that, but Threads users will be able to follow all of the same accounts they follow on Instagram with the click of a single button, which will allow creators with large followings to grow their accounts quickly.

Screenshots of the new app have been released, and the design looks like a mash up of Twitter and the comments section of an Instagram post.

The app is already available for “pre-order” (it’s free) and it is set to go live tomorrow on July 6th. It won’t initially be released in Europe as Meta works through data sharing regulations between it and Instagram. The European Commission is expected to provide clarity on the matter in September, so those in the EU aren’t likely to gain access until at least fall.

Tension between Elon Musk and Mark Zuckerberg

It’s this launch that caused the beginning of the stoush between Elon Musk and Mark Zuckerberg. When rumors began to leak about Project 92, Musk took to Twitter to level a number of low key insults against Zuckerberg.

He was egged on by his supporters, one of whom suggested he challenge the founder of Facebook to a fight, to which he replied “I’m up for a cage match if he is lol.”

In a classic internet moment, Zuckerberg screenshotted the Tweet and posted it on his Instagram story, with the simple message of “Send me location.” For those not in the know, that’s a famous call out from UFC fighter Khabib Nurmagomedov to Conor McGregor from back in 2018.

Not the first ‘Twitter Clone’

Let’s be honest, Elon Musk has reason to feel on edge. Since purchasing Twitter for $44 billion, his many missteps have put a huge target on the back of the company. Competitors have sprouted up left, right and center, with Twitter founder Jack Dorsey’s invite only, decentralized platform BluSky Social, Mastodon and Donald Trump’s Truth Social all looking to knock Twitter off its perch.

So far, none have really succeeded to become a full replacement to Twitter, but they have helped fan the flames of discontent on the app by providing some hope to users of a better alternative.

How has Meta stock reacted to the launch?

There’s no gray area here, Meta stock has been killing it so far this year. The price is up 129.29% so far this year, after a challenging 2022 saw its value plummet.

Mark Zuckerberg has coined 2023 as the “Year of Efficiency” for the company, which has resulted in mass layoffs and a pivot away from the Metaverse project to focus on core products and services.

The market has responded incredibly well to these strategic changes, and shareholders will have cause to be optimistic about the future of Threads. Meta is known within the industry as having the most sophisticated ad platform, with companies generating billions in revenue from their ads.

The ability to plug Threads into the same ecosystem will provide an additional source of revenue for the company, and the ability to port over accounts directly from Instagram means it’s likely to have a sizable user base from day one.

It’s a recipe for success, though when it comes to the volatile world of technology and social media, nothing is certain.

Meta stock is up 1.36% over the past five days and is trading at around $286 in pre-market on Wednesday. When Threads goes live on Thursday, we could see a sizable market reaction initially, either up or down depending on the first impression of the new app.

The bottom line

Meta shareholders have been on a rollercoaster ride over the past couple of years, and it’s not looking like slowing down anytime soon. With the release of their new Twitter competitor, Threads, Meta could be sitting on a massive winner that will help drive additional revenue for their ad business, or it could be a money sinking white elephant like the metaverse project.

For Elon Musk and Twitter, it’s the biggest direct competitor they’ve had to face, and there must surely be concerns on the ground that a company with as deep pockets as Meta is stepping into the ring.

Either way, investors should be prepared to see some volatility in the coming days in Meta stock, as the market decides whether Threads is looking to be a value add or a value detractor for the company.

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