Evercore ISI analysts, led by Mark Mahaney, estimate that Meta Platforms, Inc's
Threads, designed as a direct rival to Twitter Inc, quickly gained traction, with 100 million users signing up within days of its launch by Meta.
While $8 billion from Threads is a fraction of Meta's projected $156 billion average annual revenue for fiscal 2025, it surpasses the $5.1 billion in sales and revenue earned by Twitter in its last full year as a public company, Bloomberg reports.
Meta's revenue in the previous year reached about $117 billion, and the company currently boasts over 3 billion active users across its social media apps.
Twitter, considered the biggest competitor to Threads, had 237.8 million users as of July 2022.
Analyst Mark Mahaney highlights the importance of Threads maintaining a robust growth rate without significantly impacting engagement on Meta's other platforms, Facebook and Instagram.
Justin Patterson from KeyBanc Capital Markets also anticipates significant ad revenue from Threads but believes it will have a limited immediate financial impact as Meta focuses on adoption rather than monetization.
Meta CEO Mark Zuckerberg's approach aligns with prioritizing product functionality and user adoption before considering monetization strategies for Threads.
Meta's stock has performed well in 2023, doubling in value and reaching a 17-month high, contributing to the overall gains in the S&P 500 and Nasdaq 100 indices.
Price Action: Meta shares traded higher by 0.44% at $295.80 premarket on the last check Tuesday.
