Financial and mainstream media have been busy the last few days reporting on the latest number of registrants to Meta’s Twitter rival, Threads. In case you are catching up with this story still, Threads is an app that is described as a ‘friendly’ rival to Twitter and there were 30 million reported registrants on the first day alone. One of the key features of Threads is that it allows users to create a ready-to-go network with people they already know on Instagram.
Who is attracted to Threads?
Some people are attracted to Threads as they are unhappy with the way Twitter is run by Elon Musk. Other people are attracted to Threads as a potentially new way to connect with an audience and get in early on a new platform before more people catch on. Meta has a great track record of running a social media company, so confidence around Threads is high.
How has Twitter stock reacted?
Well, this is where it gets tricky. As there is no way to directly invest in Twitter stock, we can’t see a reaction in the share price. The stock has been de-listed. As of October 2022, Twitter became a private company and is not available to buy on the stock market. Elon Musk may make it public in the future, but for now, it can’t be traded. However, we know Twitter is not happy as it is threatening legal action over the new Threads app.
On Thursday last week, the Threads app was launched and the price reaction in Meta stock was muted. Technically, Meta is sitting under a major resistance level at $300 and this will be a key level for buyers to try and attack. However, with many analysts seeing the latest moves in US stocks stretched the resistance level is noteworthy for sellers to lean against too.
So, moving forward watch for new users migrating from Twitter to Threads. The more users join Threads, the better news this should be for Meta stock. Is this the end of Twitter? This will depend on how easy the Threads app is to use and what the user experience is. This is one story to watch carefully though as Meta makes a move on Twitter.