With the release of their latest app, Threads, it is looking like Meta stocks will increase in value. Within hours of the app’s launch, financial analysts predict Meta stocks could soon reach almost $900 billion in market valuation. This is an almost 18 percent increase in the stock’s price, from around $300 to $350, the highest it has been in the past 18 months.
The launch of Threads on Wednesday was timed immaculately, given Twitter’s demise and fall in popularity following Elon Musk’s takeover. The buzz generated around short-text apps definitely increased the hype around the app, which garnered over 300 million sign-ups in just 24 hours. Mark Zuckerburg hopes to turn this number into 1 billion. Twitter hosts 300 million users on their platform. On Thursday, the market value jumped more than 1 percent, before dropping 0.35 percent.
Read more: How do Twitter and Threads face off?
During the first half of 2023, Meta stock gained 138 percent value, although it is still at a 20 percent decline from its peak value in 2021. Regardless of this year’s increase in value, CFRA analyst Angelo Zino forecasts that Threads may not generate revenue until 2025.
Many social media users have been itching for a viable replacement for Twitter post-Musk’s takeover, although none of the competition have come close to attracting and holding audience engagement to this degree.
Instagram’s Threads is a fast grower, but can it withstand the privacy issues that are so familiar to Meta? Data policy in the EU mean that the app has yet to launch in a number of countries, but will this inhibit growth over time?
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