(News Bulletin 247) – Meta Platforms shares continued their upward movement on the New York Stock Exchange on Thursday, with investors welcoming the successful launch of Threads, its new social network.
After climbing 2.9% yesterday, the title of the technology group is still up 0.4% today, compared with a decline of around 1.4% for the S&P 500 index, which brings to almost 145% its gains since the beginning of the year.
Meta announced last night that it had launched its Threads short text message service, which is supposed to compete with Twitter, and which has already accumulated 10 million subscribers in the space of seven hours.
According to analysts, this new application is intended to attack Twitter’s market share, at a time when the micro-blogging site is going through a serious slump.
“The launch of Threads comes during a tricky time for Twitter, which recently cut nearly 80% of its workforce after delisting in November and comes on the heels of more recent controversy over tweet count limits,” recall the Wells Fargo teams.
According to the American research office, Twitter’s turnover would have fallen by around 40% from one quarter to another in the second quarter due to the departure of many advertisers from the platform.
While Wells Fargo predicts a relatively tepid start for Threads, its analysts estimate that over time the service could add between 1% and 3% to the group’s annual revenue and profit, leading them to maintain their recommendation’ overweight ‘on the title, with a target price of 313 euros.
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