Threads Users Soaring

Meta is trading higher again today ahead of the open as focus stays on the continued growth in popularity of new social media app Threads. The app, launched last week, has been positioned as a direct rival to the Elon Musk owned Twitter app. Already seeing user numbers of nearly 100 million in the first week of its existence, the app is defying critics and posing a serious threat to Twitter. While Musk has dismissed the app as merely “Instagram without the pics”, the number of daily users continues to grow and is fast closing in on the roughly 200 million daily users Twitter claims.  With the app still to launch in the EU, there is massive potential to Meta to overtake Twitter in the coming 12 months, which is keeping investor sentiment bullish towards Meta here.

Musk Vs Zuckerberg

Musk and Zuckerberg have been in the headlines separately over continued jousting between the two. Following exchanges online, Musk has called to fight Zuckerbeg in a cage match which Zuckerberg has reportedly agreed to. Musk has also been accused of mocking Zuckerberg via a troll account on Twitter. For now, the events continue to keep the spotlight on the two CEO’s. However, with Threads continuing to grow in popularity, this isn’t necessarily positive for Musk.

Technical Views

Meta

For now, the stock continues to push up against resistance at the 298.96 level, having broken above the bull channel highs. With momentum studies pointed higher, the focus is on an eventual break higher here and a test of the 352.30 level longer term. To the downside, should we correct, 244.52 is the next support to note.