NIXsolutions: Meta’s Threads Gains Traction in 2023

Meta’s Threads platform, an alternative to social network X (formerly Twitter), has achieved 275 million monthly active users. Meta sees Threads as a vital addition to its social ecosystem, aiming to expand its reach and open new opportunities in the market.

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Rapid Growth Since Launch

Threads has shown significant growth since launching in July 2023, expanding its user base by 175% over the past year. Meta’s Q2 report revealed that Threads’ active users reached 200 million and now stand at 275 million, adds NIXsolutions. Mark Zuckerberg highlighted this rapid growth, noting that daily user additions exceed one million—a strong indication of both high interest and growth momentum.

Competition and Opportunities in Social Media

Despite Threads’ rapid rise, Elon Musk’s X maintains a lead with approximately 318 million active users. However, X’s user base has declined by 24% since Musk acquired Twitter in October 2022, a trend that offers Meta additional opportunities to strengthen Threads’ presence as X’s audience weakens. Meta’s primary focus with Threads remains on developing features users value, creating a sustainable foundation for long-term growth. We’ll keep you updated on any changes in this competitive landscape.

Future Revenue Potential

Meta views Threads as a future advertising platform, even as advertising currently contributes 98.3% of Meta’s total revenue. Meta CFO Susan Li, however, emphasized that Threads isn’t expected to drive significant revenue until 2025. Meanwhile, analysts at Bernstein project that advertising will likely launch on Threads next year, scaling alongside its expanding user base.

Meta’s overall daily user activity, including Facebook and Instagram, rose by 5% to 3.29 billion, though it slightly missed analysts’ 3.31 billion expectation. This minor miss contributed to a 4% drop in Meta’s stock. Still, the steady audience growth demonstrates sustained user interest across Meta’s platforms.