Meta Platforms’ (NASDAQ:META) microblogging app, Threads, has crossed 175 million monthly active users (MAUs). META CEO Mark Zuckerberg revealed this notable achievement in a post on the platform itself.
Introduced in July 2023, Threads experienced strong growth at its launch. The app is seen as a formidable rival to Twitter (now X). Also, it outperformed OpenAI’s ChatGPT in popularity, with 100 million sign-ups in just five days. However, after the initial surge, Threads experienced a decline in user engagement and activity.
Meta’s Initiatives to Boost Engagement
In response to the decline, Meta implemented several strategies to enhance user engagement on Threads. The company introduced a web version of the platform aimed at broadening its appeal. Additionally, Meta focused on improving the platform’s search feature and expanded Threads to European countries in December 2023.
These initiatives contributed to a growing user base, with Zuckerberg reporting over 150 million MAUs earlier this year. Further, the latest figure of 175 million indicates a steady increase in user base. This shows that Threads is slowly emerging as a competitive app in the social media landscape.
Future Monetization and Analyst Outlook
Meta’s Threads currently does not generate revenue, and the company has not yet monetized the app. However, during the Q3 2023 conference call, Meta’s CFO, Susan Li, expressed optimism about Threads’ future. She emphasized that Threads represents a “compelling long-term opportunity” for Meta, with the potential to attract a substantial user base.
Tigress Financial analyst Ivan Feinseth shares this optimism, expecting Threads to capture market share from X. Also, he highlights Meta’s growing AI capabilities, the success of Reels, and the introduction of Threads could drive user engagement and ad revenue.
Is META a Buy, Hold, or Sell?
Meta is investing in AI, boosting user engagement and ad revenue. The company is also cutting costs and improving efficiency to cushion earnings.
These positives keep analysts bullish about Meta’s prospects. Meta stock has gained over 44% year-to-date and has a Strong Buy consensus rating, reflecting 37 Buys, three Holds, and two Sell recommendations. The analysts’ price target on META stock is $527.68, implying a limited upside potential of 3.47%.
