Tomorrow marks an important day for Meta Platforms (NASDAQ:META). The social media giant is preparing for the launch of Threads, a text-based conversation app about to be launched by Instagram. While the new app will launch on July 6, it briefly went live today, captivating social media audiences. Digital influencer Matt Navarra tweeted a screenshot of a post by Facebook founder and Meta CEO Mark Zuckerberg, seemingly welcoming users to Threads. META stock is rising steadily as investor enthusiasm mounts for what could finally be a formidable competitor for Twitter. The Threads app is currently available for pre-download on both the Apple (NASDAQ:AAPL) app store and the Google Play store.
If the launch tomorrow goes off without any glitches, it could be the catalyst that Meta investors have been waiting for. Let’s dive deeper into the highly anticipated event and assess what it means for Meta and for social media in general.
What’s Happening With META Stock
Despite some volatility, it has been an excellent month for META stock. Now the launch of a new social media platform promises to boost it even more. As of this writing, it is up 3% for the day and shows no signs of slowing down. The tech behemoth hasn’t reported any company-specific catalysts recently. However, Cathie Wood recently took a sizable position in it, the first time she’s bet on META stock since 2021.
It’s no secret that competing with Twitter is a difficult mission. The first platform of its kind, it quickly secured the majority share of the microblogging market and spent years demonstrating impressive growth. Despite the many struggles it has faced since being purchased by Elon Musk, Twitter has remained a leading social media platform for more than two decades. Truth Social, the platform launched by Donald Trump, hasn’t been able to compete with it. However, if there is one company with the reach and resources to build a Twitter rival, it is Meta, the social media giant whose holdings include Facebook, Instagram and WhatsApp. As The Verge reports:
“News of the launch of Threads comes after a particularly messy few days at its main rival Twitter. Last week the Elon Musk-owned social media network blocked unregistered users from being able to see tweets, and implemented temporary rate limits for those who are logged in that could block you after reading hundreds or thousands of posts in a day. These changes lead to widespread issues over the weekend with users being unable to browse the service.”
Twitter’s Problems, Threads’ Opportunities
Granted, problems at Twitter are nothing new. Since Musk assumed control of the platform in November 2022, difficulties for users have abounded. Musk has suspended the accounts of journalists simply for reporting on things he didn’t approve of. Creditors have sued the company for failing to pay office space fees on time. Additionally, as the Associated Press notes, his new limit on tweets could push both users and advertisers away from Twitter. And given the looming launch of Twitter’s first real rival, his timing couldn’t be worse.
META stock is likely to surge tomorrow as the Threads launch takes center stage. But Twitter’s future remains highly questionable, even as a new CEO prepares to ease it into a new chapter.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
