What we know about Meta's "Twitter" Thread App
It is looking good!
📅 We have our quarterly summary coming out within the next week, so look out for that!
BIG PICTURE, inflation continues to moderate, the economy is stable and some data suggests it is accelerating, rates are either at peak or 95% of the way there, and the average stock sits at below-average valuations levels.
This week is all about the Meta Threads App Launch. This is a direct shot at Twitter, and so far the success is evident.
THREADS HITS #1 IN APP STORE. ALSO LOOK AT INSTAGRAM ABOVE TIKTOK
Meta's Threads App launched and rapidly gained traction on the internet, swiftly securing the #1 position on the app store within 24 hours of its release. Considering its extensive user base, some initial success should have been expected. Equally remarkable is the strength in demand for the Instagram app. It currently sits above TikTok. To utilize Threads, an Instagram account is a prerequisite. Consequently, we are witnessing both new users joining Instagram and existing Instagram users differentiating their personal presence from their "Twitter" identity. This development proves to be advantageous on multiple fronts, resulting in a win win win.
** Full disclosure, Avory is an investor in Zoom at the time of this piece.
GOOGLE SEARCH TRENDS SHOW THE SAME DYNAMIC. THREADS #1
To confirm the strength we witnessed in the app store, we went ahead and analyzed Google Search Trends. What we found was more of the same. Threads became the #1 searched topic on Google.
10 MILLION USERS IN 6 HOURS AND JUST HIT 40 MILLION AS I WRITE THIS
In order to determine the users, we proceeded to sift through many of the workers at Meta who appeared to be working on Threads. We stumbled upon one of their engineers posting about their engineering team and disclosing the milestone of 10 million users metric. It is probable that this figure has since increased past the 40 million mark discussed, given that more than 24 hours have elapsed since that remark. Zuckerberg replied to this post, which, in our view, validates the original number.
1 BILLION USER GOAL?
As we continued to sift through posts and data, we came across Zuckerberg pointing out the monetization strategy, and what seems to be a stretch goal for the company. I think it is clear Meta thinks that Threads can be a big deal.
We also think Threads will be a success for three main reasons:
1. Instagram has the largest existing creator ecosystem. This means this is a quick plug-and-play.
2. The Instagram ecosystem is image-based with little ability to communicate with followers. This opens a different conversation with users who already look for ways to communicate.
3. Arguably 85% of Instagram users don’t use Twitter. This figure is derived by using the latest figure we know from Twitter's monthly active users and assuming 75% of those use Instagram actively each month. (Twitter 450m *75% / 2.35B Instagram)
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Disclaimer: Not a recommendation to purchase or sell any securities mentioned. This is for educational purposes only.