Article Hero

Instagram’s Threads, is it the Twitter Killer?

Maria Gregoriou
Maria Gregoriou
10 July 2023

Meta shares skyrocketed just hours after the launch of Threads, its new free app that is said to be a direct threat to Twitter. Within the first 18 hours of its launch, it saw 30 million sign-ups, and all the hype around the “Twitter Killer” as it has been dubbed, helped Meta shares close nearly 3% higher on Wednesday ‘before adding a further 1.7% in pre-open Thursday trading,’ according to Investing.com.

Is Twitter really suing Meta after the launch? Will the shares of Meta continue to shoot up? Will Mark Zuckerberg and Elon Musk really get physical now and is the war between text-heavy apps just beginning?  

Read on and follow the thread to all the latest action around the matter. 

The Launch of Instagram’s Threads

The launch of Threads by Meta Platforms Inc., owner of Facebook, Instagram, and WhatsApp, took the social media world by storm on Wednesday, July 5, after Mark Zuckerberg – Meta CEO – shared his first thread saying “Let’s do this. Welcome to Threads.” 

zu.png

Mark Zuckerberg’s Thread account feed.

Within hours of its launch, Threads had 30 million signups, including celebrities like Kim Kardashian and Jennifer Lopez, making it the fastest-downloaded app in history.

Let's just put that number into perspective, with a look at how long it took other platforms to reach one million users. 

stat.png

Source: Statista

Showing a similar purpose and user-interface to Twitter, Threads is trying to stand up to the core of what Twitter is all about. The new platform on the block is selling itself as a place where people can have real-time conversations online, as well as share their ‘unfiltered’ thoughts and opinions. Twitter is well-known for being the platform where users talk about the more difficult subjects, like politics and world matters, and where people take a stand. Now, it seems, Threads is trying to tear down that monopoly and take its place in this space.  

Users of Instagram can sign-up to Threads through their existing Instagram account and use the same name on both apps, making users instantly recognizable to existing Instagram followers. Once this is done, however, users who then want to delete their Threads account must also delete their Instagram account, as they go together as a package if you choose this way of signing-up.  

As Instagram is image heavy and Threads is text heavy, the interlinking of the two could give users the perfect combination when it comes to sharing their personal lives and taking a stand on social issues. 

mos.png

Adam Mosseri’s Thread account feed.

Meta Stocks Reaction

Just after Threads launched on Wednesday, Meta’s shares closed nearly 3% higher before going even higher with a further 1.7% gain in pre-open Thursday trading.

meta stocks.png

Meta daily chart, July 6th, 2023.

This massive climb is expected to have ‘little near-term impact from the launch. At maturity, Wells Fargo analysts estimate potential annualized impact at 1-3% of revenue and EPS,’ according to Investing.com.

Twitter Threats to Sue Meta for Copycat Actions

Twitter is not taking the threat of annihilation lying down. According to a letter cited by Semafor that was addressed to Zuckerberg, Twitter’s lawyer, Alex Spiro, allegedly accused Meta of unlawfully using Twitter’s trade secrets. Spiro has been quoted as saying in the letter that Twitter, "intends to strictly enforce its intellectual property rights".  

Meta spokesperson, Andy Stone, quickly replied to the allegations by saying that, "no one on the Threads engineering team is a former Twitter employee that's just not a thing.".

Twitter and Elon Musk

Twitter came to life in 2006 and raised $1.8 billion when it went public in 2013. In 2022 Tesla front man, Elon Musk, bought Twitter for $44 billon and pulled a publicity stunt by entering the San Francisco office carrying a bathroom sink and tweeting “entering Twitter HQ – let that sink in!” 

sink.png

Elon Musk Twitter account.

Over the past year Musk has said he will charge anyone for verification for $8+ a month for a Twitter Blue subscription and that he will limit how many Tweets people can see.

Threads and Twitter: A Comparison

Threads is in its infant stage and has a lot of room to grow, as Instagram Head, Adam Mosseri, already said in a thread that there are many functionalities on the way. 

mo2.png

Adam Mosseri’s Thread account feed.

But before all these “tons of basics that are missing” are incorporated into the app, here is a break-down of the main features of both apps. 

Threads Twitter 
Focus on text posts Focus on text posts 
Users can like, reply, and repost Users can like, reply, and repost 
Limited to 500 characters Limited to 280 characters
Cannot send direct messagesCan send direct messages
Cannot search for content Can search for content 
Cannot use hashtags to gain from viral trends Can use hashtags to gain from viral trends 
Can share photos Can share photos 
Videos can go up to 5 minutes Videos can go up to 2 minutes and 20 seconds 

Zuckerberg also joined in with Mosseri to get the point across that there is a lot more to come for Threads by threading that it “feels like the beginning of something special, but we’ve got a lot of work ahead to build out the app”.

How are Other Big Names Trying to Get Their Piece of the Pie

Influencers now have more room to move with Threads and big company names are already being smart about using the app to their advantage. Netflix (NFLX) didn’t miss a beat and used the fact that the app was launched on a Wednesday to remind us all of its very successful series. 

wednesday.png

Netflix Threads account feed

How to invest in Meta at CAPEX.com

1. Log in to your CAPEX account.

2. Be sure your account is already funded with our flexible payment options.

3. At the top right you can see the type of account you are in. Here you can choose if you want to trade CFDs or invest in real assets.

4. Go to the search icon at the top left of your WebTrader and enter Meta or the name of another company we provide trading on.

5. Select the instrument.

6. Enter the amount you wish and Select ‘Buy’ at the top. If you already have the stock and want to sell it, select the ‘Sell’ button.

7. That’s it! If your transaction was successful, you will be notified.

And now what?

Many other companies have tried to match Twitter but without much success. They did not have the power of Facebook, WhatsApp, and Instagram behind them and so didn’t make such a splash in the social media pond.  

Now, after days of hype, there are three main questions hanging in the air:

  • Is it this just a flash in the pan, will all this hype disappear as people settle into the platform they most prefer?
  • How will the companies’ stocks react over the next couple of days?
  • Should we fear the amount of user data Meta will now be able to get its hands on?

All we can do is continue to be updated, follow where the news leads, and be ready to use this knowledge in the near future.

Summary

  • Meta launches Threads, a direct competitor to Twitter
  • Meta share prices shoots up on the news
  • Twitter is said to sue Meta for using Twitter’s trade secrets
  • Elon Musk’s takeover of Twitter a year ago has cause some controversy 
  • Threads and Twitter have many similarities and many differences
  • Threads says it has many more features to add
  • Threads is already being used by celebrities and big-name companies 
     
The information presented herein is prepared by CAPEX.com/eu and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.                                                                                                                            Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience, or current financial situation.Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance and forecasts are not reliable indicators of future results.

Share this article

How did you find this article?

Awful
Ok
Great
Awesome

Read More

Maria Gregoriou
Maria Gregoriou
Financial Writer

Maria Gregoriou writes marketing content to excite traders and for CAPEX.com. Maria has over 25 years of experience in professional writing, from technical writing to journalism and marketing, both in-house and on a freelance basis. On the personal side, she writes poetry and short stories for children. Over the past five years, Maria has been working in the financial sector where she has been creating marketing copy, editing content, and preparing material to go live. She was also given the chance to mentor other writers along the way. 

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69.69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.