According to the US research company Evercore ISI, although it is an early prediction for now, Threads, which Meta has launched as an alternative to Twitter, could generate a significant cash flow for the social media giant in the coming years.
Evercore ISI analysts, led by Mark Mahaney, predicted that the app will reach close to 200 million daily active users over the next two years, generating approximately $8 billion in annual revenue.
More than 70 million users signed up for Instagram’s new app, designed to rival Elon Musk’s Twitter, in 2 days after it was launched last Wednesday.
While that’s a tiny fraction of Meta’s expected $156 billion in average annual revenue in 2025, according to data compiled by Bloomberg, it’s still a huge chunk of Twitter’s $5.1 billion in sales and revenue in its last year as a public company. above.
Meta generated $117 billion in revenue last year
Meta, which has more than 3 billion active users in social media applications, had a revenue of 117 billion dollars last year.
Twitter, which has been the subject of controversy since Musk’s purchase last year, had 237.8 million users as of July 2022.
“It will be interesting to watch whether Threads can maintain a reasonable growth rate and retain users in the new app without significantly disrupting engagement on Meta’s other platforms, Facebook and Instagram,” said Mahaney, a highly successful stockholder. ” expressions were used.
“Priority will be app adoption before monetization”
Justin Peterson, from Keybank Capital Markets, also said he thinks the app will bring the company several billion dollars in ad revenue. “However, this figure will be an insignificant contribution in the near term as Meta is more likely to prioritize app adoption over making money.”
Mark Zuckerberg, who is very active on his new platform, also seems to share this view. “Our approach will be the same as our approach to our other products: First get the product working well, then we’ll see if we can put it on a clear path that will deliver net 1 billion people, and then we’ll think about monetization,” Zuckerberg said on the app last weekend.
Meta’s stock has more than doubled this year, gaining as much as 2.6 percent in Monday trading. The company, along with other technology giants, became one of the driving forces behind the rises in the S&P 500 and Nasdaq 100 indices in 2023.