Wall Street analysts and social media users on Thursday debated whether the Threads app from Meta Platforms unit Instagram is a threat to Twitter in the microblogging space. At least two investment banks raised their price targets on Meta stock after Threads launched late Wednesday.
Threads went live at 7 p.m. Eastern time Wednesday after Meta moved up the launch from Thursday morning.
On Thursday, the term "Twitter killer" trended on Twitter as users discussed whether Threads could replace it as the digital town square.
Meta Chief Executive Mark Zuckerberg announced that Threads had 30 million sign-ups within 18 hours. Instagram users can use their existing credentials to log into the Threads app.
Instagram reportedly has about 2 billion users compared with Twitter's roughly 300 million users.
Meta Stock Gets Price-Target Hikes
Twitter owner Elon Musk hasn't commented about Threads lately other than to reply to a couple of tweets mocking it with a crying-laughing emoji.
On the stock market today, Meta stock dipped 0.8% to 291.99.
Earlier in the day, Tigress Financial Partners analyst Ivan Feinseth reiterated his strong buy rating on Meta stock. He also raised his 12-month price target to 380 from 285.
"The launch of Threads creates the opportunity to further increase Instagram engagement and creates another potential growth catalyst," Feinseth said in a note to clients.
He also noted the company's improved cost management and innovation in areas such as artificial intelligence and the metaverse.
Late Wednesday, KeyBanc Capital Markets analyst Justin Patterson upped his price target on Meta stock to 335 from 280. He rates the Facebook parent's stock as overweight.
However, Patterson said his improved outlook for Meta is based on the company's core advertising products. In a note to clients, Patterson said Threads "will be an immaterial contributor near term" for Meta.
Threads 'A Friendly Public Space'
The Threads app is available to download for free on the Apple App Store and Google Play online store in over 100 countries, Meta said in a blog post. Threads is not available in the European Union because of that region's strict data privacy regulations.
With the Threads app, users can post text up to 500 characters, weblinks, photos and videos up to five minutes in length.
"The vision for Threads is to create an option and friendly public space for conversation," Zuckerberg said in a Threads post following the launch. "We hope to take what Instagram does best and create a new experience around text, ideas, and discussing what's on your mind."
Path To 1 Billion-Plus Users?
Baird analyst Colin Sebastian kept his outperform rating on Meta stock with a price target of 260.
"The connection to Instagram and easy on-boarding is driving the unexpected pace in user growth" for Threads, he said in a note to clients Thursday. "Over time, Mark Zuckerberg hopes the app will reach a billion-plus users."
Ahead of the launch, Instagram wisely recruited creators from key areas of interest — such as fashion, beauty, music and sports — to add content to the site, Sebastian said.
Meta executives are trying to differentiate Threads from Twitter by describing their new service as "open and friendly" and "big and friendly." They are playing off the "perception that Twitter is packed full of negativity and trolling."
Meta stock is on IBD's Leaderboard as well as the IBD Tech Leaders list.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
