Threads Overnight Success
Upon its release Wednesday night, Meta’s microblogging app dubbed “Threads” became an overnight success, amassing over 30 million signups in one night. Adding to his online “beef” with Tesla founder Elon Musk, Mark Zuckerberg released his own competitive microblogging platform that several believe to be too like Twitter. In an almost “copy-and-paste” fashion, Threads’ functionality, user interface, and overall business proposition seem to match that of Twitter’s own; the similarities were enough for Musk’s lawyer to write a letter to Meta accusing them of stealing intellectual property and trade secrets from Twitter, threatening a lawsuit. This wasn’t Zuckerberg’s first attempt to monetize pre-conceived ideas, as several users noted Facebook and Instagram have long stolen functions from Snapchat, TikTok, Nextdoor, Tinder, and more.
Despite the controversy, Threads still established almost 6% of Twitter’s monthly users in one night, mostly due to its direct compatibility with Meta-owned Instagram. Furthermore, Threads has already received large advertising from major brands and celebrities that have already begun downloading and promoting the app. However, outside of direct network effects, Threads does lack a lot of features compared to a more mature Twitter. At launch, Threads can’t support direct messaging, advertisements, follower feeds, and more. For now, it seems Twitter has time to establish itself as the major market player seeing that Threads lacks its own website app and any direct forms of revenue.
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.