Meta’s Threads still attracts advertisers from X platform (Twitter), but it’s too early to make conclusions.
Meta's Threads still attracts advertisers from X platform (Twitter), but it's too early to make conclusions.
The Blockchain Industry: A Competition Between X Platform and Threads
Introduction
In the fast-paced world of tech entrepreneurship, the competition between Elon Musk and Mark Zuckerberg has expanded beyond just their personal differences. It has now become a battle for growth between their respective platforms, X platform (formerly Twitter Inc) and Threads. As of now, Musk seems to have the upper hand with over 240 million monetizable users on his platform. In a recent interview, Musk emphasized that the X platform is not just a social media platform but will evolve into a vast financial ecosystem, comparable to the all-encompassing Chinese app WeChat. On the other hand, Meta’s Threads has been making significant progress by amassing a large user base, becoming the fastest social media platform to reach 100 million downloads on both Android and iOS. However, Threads is still in the early stages of development and doesn’t currently accept advertising offers. Mark Zuckerberg has stated that once Threads hits the milestone of 1 billion users, the focus will shift to advertisers. This article will delve into the competition between X platform and Threads, as well as the analysts’ take on their potential revenue generation.
X Platform vs. Threads: The Battle for Growth
Since Elon Musk took the helm at Twitter and rebranded it as X platform, there have been several changes that have elicited mixed reactions from users and advertisers. X’s CEO, Linda Yaccarino, has stated that the platform will prioritize free expression and strive to create a healthy environment for all users. However, a recent Bloomberg article alleged that harmful content on Twitter had been on the rise. X’s leadership strongly refuted this claim, and Musk himself noted that ads on the platform have declined by almost 50%, although he did not provide a specific timeline. Despite these challenges, analysts at Bernstein believe that Threads could offer Meta a significant revenue stream if it can retain its customers. They projected that Threads could generate up to $5 billion in annual revenues for Meta in the coming years.
Potential Revenue Generation
Morningstar analysts further supported the revenue potential of Threads, estimating that it could contribute between $2 billion and $3 billion to Meta’s annual revenue between 2024 and 2027. Additionally, Evercore ISI analysts predicted that Threads could generate as much as $8 billion in annual revenue by 2025. These projections suggest that Threads has the potential to become a substantial revenue driver for Meta, but it is important to note that these estimates are based on optimistic assumptions and the platforms are still in the early stages of development.
Conclusion
The competition between X platform and Threads represents a clash of tech titans and their visions for the future of social media and user engagement. As Elon Musk aims to transform X into a comprehensive financial ecosystem akin to WeChat, Mark Zuckerberg’s Meta is focused on reaching the milestone of 1 billion users on Threads before delving into advertising opportunities. The analysts’ projections indicate that Threads could become a significant revenue generator for Meta, but it is crucial to recognize that these estimates are based on optimistic assumptions and the platforms are still evolving. Ultimately, the battle between X platform and Threads showcases the rapid development and potential of the blockchain industry in shaping the future of social media and beyond.
