Meta stock is set to surge with the launch of Threads, a Twitter competitor, according to multiple analysts. Despite Threads currently having no revenue prospects, experts believe Meta could add another $150 billion in market valuation. The timing of Meta’s launch is advantageous, given the recent issues at Twitter following Elon Musk’s takeover and the desire for many to have an alternative option.
Within just seven hours of its launch, Threads gained 10 million users. This impressive number demonstrates the initial popularity and potential of Meta’s new platform. In the first half of 2023, Meta was the second best-performing stock on the S&P 500, gaining 138%. Although it remains 20% below its 2021 peak, Meta’s surge can be attributed to increasing advertising revenue and optimism surrounding the monetization of its short-form video platform, Reels.
Mark Zuckerberg, the CEO of Meta, has also seen a significant increase in his personal wealth. As of the end of 2022, he is reportedly $61 billion richer, making him the seventh-richest person in the world. However, his fortune of $105 billion is still significantly less than that of Elon Musk, the owner of Twitter and the wealthiest individual on the planet.
The launch of Threads coincided with a public feud between Musk and Zuckerberg, with both showcasing their martial arts training in anticipation of a potential fight. However, analysts believe that their rivalry is merely a distraction and should not impact the overall perception of Meta. Despite Tesla’s stock dropping 65% last year due to the controversial takeover of Twitter by Musk, the ongoing competition between the two tech moguls is not predicted to have a significant impact on Meta’s success.
Overall, the introduction of Threads has generated optimism among analysts, leading them to upgrade their outlook on Meta stock. With its impressive user sign-up rate and the demand for alternative social media platforms, Meta could witness a surge in market valuation, potentially adding another $150 billion. This latest development further solidifies Meta’s position in the market and accentuates its potential growth in the future.
