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Meta Platforms (META) Challenges Twitter With Threads App
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Meta Platforms (META - Free Report) division Instagram recently unveiled Threads, which focuses on text-based sharing. The new app presents an interesting competition for Elon Musk’s Twitter, which is facing user dissatisfaction following the latest limit on the number of tweets users have access to per day.
Threads has the potential to attract users who are seeking alternative platforms, thanks to ease of accessibility and decentralization. Threads offers a separate space for real-time updates and public conversations, providing a positive and creative outlet to express ideas. Similar to Instagram, Threads allows users to follow and connect with friends and creators who share their interests.
Threads users can follow the same accounts they follow on Instagram. Features that enhance accessibility on Instagram, such as screen reader support and AI-generated image descriptions, are also available on Threads. Users’ posts can be up to 500 characters long and they can include links, photos and videos of up to five minutes in length.
One notable aspect of Threads is its compatibility with open and interoperable social networks. Meta plans to make Threads compatible with ActivityPub, an open social networking protocol established by the World Wide Web Consortium. This compatibility will allow Threads to interact with other apps supporting the ActivityPub protocol, fostering new connections that were previously limited on most social platforms.
The incorporation of decentralized technologies like ActivityPub, which powers apps like Mastodon and WordPress, adds another layer of appeal. Decentralization allows users to have greater control over their data and promotes innovation through the development of new features and user experiences. By joining the open social networking protocol ecosystem, Threads aims to help users find their communities regardless of the app they choose to use.
Meta's emphasis on positive and productive conversations, along with its commitment to user safety and community guidelines, positions Threads as a viable option for those looking for a more engaging and controlled social experience.
Threads is available for download on iOS and Android devices in over 100 countries. Meta plans to introduce additional features to enhance user experience, including improved recommendations and a more robust search function. As Threads evolves, Meta looks forward to gathering feedback from users to continue building new features and fostering meaningful connections on the app.
Meta’s Prospects Bright in 2H23
Meta had a terrific first half of 2023. Its shares have jumped 144.6% year to date. The company is benefiting from steady user growth across all regions, particularly Asia Pacific.
Increased engagement for its offerings like Instagram, WhatsApp, Messenger and Facebook has been a major growth driver. The company is leveraging AI to recommend content, which is driving traffic on Instagram and Facebook. Its restructuring plan is expected to reduce expenses, thus driving profitability.
Moreover, Meta's recent initiatives aimed at enhancing parental supervision, messaging privacy, and time management on its platforms demonstrate the company's commitment to prioritizing user safety and well-being.
In first-quarter 2023, Family Daily Active People or DAP, defined as a registered and logged-in user who visited at least one of the Family products (Facebook, Instagram, Messenger or WhatsApp) on a given day, were 3.02 billion, up 5.2% year over year. Family Monthly Active People or MAP increased 4.2% year over year to 3.74 billion.
Advertising revenues (99.3% of Family of Apps revenues) increased 4.1% year over year to $28.10 billion and accounted for 98.1% of first-quarter revenues.
Meta expects total revenues between $29.5 billion and $32 billion for the second quarter of 2023. The Zacks Consensus Estimate for revenues is pegged at $30.80 billion, indicating 6.87% year-over-year growth. The consensus estimate for earnings stands at $2.82 per share, suggesting 14.63% year-over-year growth.
META shares have outperformed both the Zacks Computer & Technology sector and the Zacks Internet Software industry year to date. The sector and industry have returned 50.5% and 37%, respectively.
Shares of NVIDIA, Palo Alto and Monday.com have risen 189.6%, 84.8% and 37.4%, respectively, on a year-to-date basis.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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Meta Platforms (META) Challenges Twitter With Threads App
Meta Platforms (META - Free Report) division Instagram recently unveiled Threads, which focuses on text-based sharing. The new app presents an interesting competition for Elon Musk’s Twitter, which is facing user dissatisfaction following the latest limit on the number of tweets users have access to per day.
Threads has the potential to attract users who are seeking alternative platforms, thanks to ease of accessibility and decentralization. Threads offers a separate space for real-time updates and public conversations, providing a positive and creative outlet to express ideas. Similar to Instagram, Threads allows users to follow and connect with friends and creators who share their interests.
Threads users can follow the same accounts they follow on Instagram. Features that enhance accessibility on Instagram, such as screen reader support and AI-generated image descriptions, are also available on Threads. Users’ posts can be up to 500 characters long and they can include links, photos and videos of up to five minutes in length.
One notable aspect of Threads is its compatibility with open and interoperable social networks. Meta plans to make Threads compatible with ActivityPub, an open social networking protocol established by the World Wide Web Consortium. This compatibility will allow Threads to interact with other apps supporting the ActivityPub protocol, fostering new connections that were previously limited on most social platforms.
The incorporation of decentralized technologies like ActivityPub, which powers apps like Mastodon and WordPress, adds another layer of appeal. Decentralization allows users to have greater control over their data and promotes innovation through the development of new features and user experiences. By joining the open social networking protocol ecosystem, Threads aims to help users find their communities regardless of the app they choose to use.
Meta Platforms, Inc. Price and Consensus
Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote
Meta's emphasis on positive and productive conversations, along with its commitment to user safety and community guidelines, positions Threads as a viable option for those looking for a more engaging and controlled social experience.
Threads is available for download on iOS and Android devices in over 100 countries. Meta plans to introduce additional features to enhance user experience, including improved recommendations and a more robust search function. As Threads evolves, Meta looks forward to gathering feedback from users to continue building new features and fostering meaningful connections on the app.
Meta’s Prospects Bright in 2H23
Meta had a terrific first half of 2023. Its shares have jumped 144.6% year to date. The company is benefiting from steady user growth across all regions, particularly Asia Pacific.
Increased engagement for its offerings like Instagram, WhatsApp, Messenger and Facebook has been a major growth driver. The company is leveraging AI to recommend content, which is driving traffic on Instagram and Facebook. Its restructuring plan is expected to reduce expenses, thus driving profitability.
Moreover, Meta's recent initiatives aimed at enhancing parental supervision, messaging privacy, and time management on its platforms demonstrate the company's commitment to prioritizing user safety and well-being.
In first-quarter 2023, Family Daily Active People or DAP, defined as a registered and logged-in user who visited at least one of the Family products (Facebook, Instagram, Messenger or WhatsApp) on a given day, were 3.02 billion, up 5.2% year over year. Family Monthly Active People or MAP increased 4.2% year over year to 3.74 billion.
Advertising revenues (99.3% of Family of Apps revenues) increased 4.1% year over year to $28.10 billion and accounted for 98.1% of first-quarter revenues.
Meta expects total revenues between $29.5 billion and $32 billion for the second quarter of 2023. The Zacks Consensus Estimate for revenues is pegged at $30.80 billion, indicating 6.87% year-over-year growth. The consensus estimate for earnings stands at $2.82 per share, suggesting 14.63% year-over-year growth.
Zacks Rank & Other Stocks to Consider
Meta currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
META shares have outperformed both the Zacks Computer & Technology sector and the Zacks Internet Software industry year to date. The sector and industry have returned 50.5% and 37%, respectively.
NVIDIA (NVDA - Free Report) , Palo Alto Networks (PANW - Free Report) and monday.com (MNDY - Free Report) from the broader sector also carry the same Zacks Rank as Meta.
Shares of NVIDIA, Palo Alto and Monday.com have risen 189.6%, 84.8% and 37.4%, respectively, on a year-to-date basis.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.