Following the launch of the new Threads app, many are wondering what impact it could have on the accounts of social networking giant Meta.
The application launched by Meta Platforms, Threads, is arousing considerable interest in the digital landscape. It has managed to quickly reach over 100 million new users, attracted by the appeal of novelty. The sudden and peculiar decision of Mark Zuckerberg and his team to launch a social network similar to Twitter has aroused analysts’ attention.
Many users have noticed similarities in the user experience between Threads and Twitter, which raises questions as to why Meta has chosen to introduce a similar offer in a period characterized by unusual and partly exacerbated tensions between CEOs like Zuckerberg and Elon Musk.
In addition to the strategic complexities of the transaction, it is inevitable to consider the financial impact of this choice on the group’s accounting situation and the possible impact on the share price.
Can Threads really beat Twitter?
Recently, Musk has come under fire for limiting the maximum number of tweets a user can view, just a few days before the launch of Threads, Meta’s new app. The latter seems to have taken advantage of the opportunity to attract as many users as possible by putting a spoke in the Twitter giant’s works.
It’s hard to predict the outcome of this modern-day trade "war," but the consequences could be significant: Advertisers, already angered by Musk’s new policies, could decide to shift their advertising spending to the new Threads, provided that the latter manages to keep its number of users stable and growing. This could severely hurt Twitter’s balance sheets.
However, it is widely believed that Threads does not currently represent an equally attractive alternative in the wider world of social networks and it may take some time for the application to become mainstream and the primary choice of advertisers.
Meta Platform: a look at the charts
Meta’s share price chart for the last few months shows a surprising trend. Since January 2023, the price has followed a remarkable growth as evidenced by the 50-period moving average on the daily timeframe, which shows a steady upward trend with no signs of flattening out.
This result is not accidental: the YoY return has exceeded 150%, which demonstrates how Meta’s investing public has placed extreme trust in the CEO’s decisions. META stock recently crossed the $300 mark, although it represented a technical threshold considered difficult to break. In essence, regardless of the financial gains or losses that may arise from the development of Threads, Meta’s shareholder audience appears to price in decidedly bullishish expectations.
Original article published on Money.it Italy 2023-07-19 15:49:17. Original title: Azioni Meta: come potrebbe impattare il lancio di Threads sul prezzo?
