Tuesday's Market Minute: Meta Platforms: The Death Star To Social Media Competition

It’s 2005. You upload your Nikon digital camera photos onto Photobucket. Reassess your Top 8 friends list. Tom is everyone’s favorite friend. It’s the era of Myspace, and the onset of the booming social media industry. Life is good.

Anyone who lived through the rise (and fall) of Myspace can clearly recall the website’s largest threat: another emerging social website targeting college kids, otherwise known as Facebook. Throughout the years, the trials and turbulence of remaining relevant as a social media company have been well evidenced through the demise of so many platforms. Think – Friendster, Orkut, Vine, Google+, Bebo, FriendFeed, and Second Life.

This is precisely the argument currently calling for the eventual fall of Twitter, with the launch of Meta’s Threads. Threads reached 100M sign-ups over the weekend, solely through organic demand. This was the first app to achieve that level of growth that quickly, hitting the 100M milestone even faster than OpenAI’s ChatGPT. Plus, the app still has significant room for growth, having not yet launched in Europe. Additionally, this morning Axios reported that Meta Platforms META
is aiming to bring its branded content tools to Threads. This move will allow marketers to participate in the new app with paid partnerships while advertising is unavailable.

If Threads is able to retain its growing users, it could become a real competitor for Twitter, which reported nearly 238 million monetizable daily active users in its last earnings report as public company. This isn’t to say Twitter is the next Myspace. But with Meta/Instagram having nearly three victories at this point (Snapchat, Vine, Myspace), it’s hard to put it past the social media behemoth. And so far this year, Meta’s performance speaks to its overall dominance. Through Monday’s close, shares have rallied 144% year-to-date, and 234% off 52-week lows.

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