Meta’s social media app, Threads, has shown remarkable resilience in recent times, defying initial criticisms and challenges. Mark Zuckerberg, Meta’s CEO, recently announced that the app has garnered “just under” 100 million monthly users. This is a noteworthy achievement given the app’s turbulent start in July, with initial surges in sign-ups followed by drops in engagement. Users expressed dissatisfaction over limited functionalities and an overflow of brand-related posts in their feeds.
A Stronger Push Against Competitors
Threads was launched with a clear intent – to offer stiff competition to platforms such as X, a venture of Elon Musk. In the initial phase, while Threads saw a sharp rise in the number of sign-ups, the subsequent dip raised eyebrows. But with strategic feature additions and improvements, Threads witnessed a revival in user engagement. It’s also worth noting that recent changes by Musk to X, such as the removal of headlines from links, played into Meta’s hands. Threads managed to woo former “power users” of X back to its platform, as reported by The Wall Street Journal.
Meta’s Financial Health
Threads is not the only high for Meta. Financially, the company has had a sound quarter with a reported revenue of over $34 billion, marking a 23% increment from the previous year. The user base has also expanded with a staggering 3.9 billion people now engaging with one of the company’s platforms each month. This growth came even as the company made a strategic move towards “efficiency”, which saw a shedding of over 20,000 jobs in the previous year.
Commitment to AI and The Metaverse
Generative AI will be at the forefront of Meta’s future endeavors. As part of this directive, several non-AI projects within the company will be sidelined to prioritize AI. However, this doesn’t imply any cutbacks in Meta’s investment in the metaverse. Reality Labs, the division in charge of AR and VR, reported a revenue of $210 million. But it hasn’t been all rosy. The division has accumulated losses totaling over $11 billion since the beginning of 2023.
Meta’s strategies seem to be paying off, albeit with a few hitches along the way. Their commitment to both AI and the metaverse signals a dual-focused approach. The recent successes with Threads and steady financial growth, despite a volatile market, show a company adept at recalibration and adaptation. Only time will tell if this trajectory will continue, but the current landscape appears promising for the tech giant.