Threads meta no valley 11 twitter

Meta launched Threads on July 5, which is a direct competitor to Twitter.Etienne Laurent (EFE)

Since Elon Musk removed Twitter, a close competitor to Meta Platforms, from the public market nine months ago, the social media company’s share value has skyrocketed. But this is not enough for the head of the group, Mark Zuckerberg. On wednesday fired a Direct competitor, ThreadsThis prompted Twitter to threaten to sue him. Zuckerberg does no favors for shareholders.

There’s no better evidence that the Facebook operator has actually outperformed its much smaller rival than financial results: Shares in Zuckerberg’s company have more than tripled since November 4, 2022, just days after Musk closed his $44 billion Twitter deal, pushing its market value to $750 billion. That compares to increases of 40% at Alphabet and Apple.

Zuckerberg made changes to Meta that helped. The cost cuts will boost EBITDA margins this year to 50%, Refinitiv estimates. Analysts expect Meta revenue to increase nearly 9% this year, which is a significant improvement over last year’s decline. Profitability should increase by 35%.

But part of that stock price rally comes from Twitter’s devaluation. Public contributors may have migrated to the Meta once Twitter went private, for example. Meta’s Facebook and Instagram probably won advertisers over. And according to a letter sent at least Thursday by Twitter’s lawyers, Meta has snapped up some programmers from Musk’s company.

It’s not clear if Twitter users have moved on, but in that sense, Meta Threads may do more harm than help. The platform can easily be downloaded via Instagram, and while the microblogging site is similar to Twitter, the content curation of topics depends, at least initially, on Instagram followers. Any user new to threads will have to do their best to create the same experience they receive on Twitter.

This indicates that people can use threads on an Instagram account. Even if threads killed Twitter, it wouldn’t be worth 11 Twitter. And even if he does, Zuckerberg, whose net worth has increased by $70 billion since last fall, has already benefited from it.

Meta is trading at EBITDA five times higher than Alphabet, despite the latter’s focus on it A promising artificial intelligence initiative. Zuckerberg may be eager to take on Musk. However, eliminating a competing company is somewhat better than a cage match.

Authors columnists for Reuters. The opinions are yours. translation Lucia Manchón CabreraWell, it’s a responsibility five days

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