Will Meta Platform’s Threads Upend the Social Media Landscape?

The release of Meta Platform’s (META) Threads app is a direct competitor to Twitter, which has struggled since Elon Musk purchased the company.  The Threads app also threatens other social media platforms, such as Snap (SNAP) and Pinterest (PINS), notably after Threads amassed 100 million users within a week of its launch.  The smaller platforms may struggle to remain relevant in the highly competitive market for online advertising. 

Shares of Meta Platforms have surged +157% this year, second only to Nvidia among stocks in the Nasdaq 100. Meta Platform’s net earnings per share are expected to grow +40% this year, outpacing estimates for Snap and Pinterest.  Freedom Capital Markets said, “It’s hard to make a case for owning Snap or Pinterest over Meta Platforms since there’s no arguing that Meta is the strongest in the sector and the one that’s most likely to get stronger.”