Mark Zuckerberg Surprised as Threads App Draws More Repeat Users Than Expected.
Facebook founder Mark Zuckerberg expressed surprise at the success of his new social media app, Threads, which garnered over 100 million sign-ups within days of its recent launch, putting it in direct competition with Elon Musk’s platform, X (formerly Twitter). Despite initial enthusiasm, outside data firms reported a decline in sign-ups and time spent on the platform after its launch, leading analysts to question its ability to keep users engaged.
Mr. Zuckerberg acknowledged the unexpected popularity of Threads, with more users returning daily than he had anticipated. The focus now is on improving user engagement, but he cautioned that the app’s success is not guaranteed and emphasized the need for continuous effort to maximize its potential.
In the midst of Threads’ reception, Meta, the parent company of Facebook, Instagram, and WhatsApp, reported a significant surge in advertising sales and robust user growth. With 3.07 billion people actively using its apps daily, Meta appears to be rebounding from the advertising sales slump experienced the previous year, driven by increased competition, Apple’s privacy changes, and economic challenges.
During the April-June period, Meta’s advertising sales reached $32 billion, an 11% increase from the prior year, surpassing analysts’ expectations, and growth accelerated from the previous quarter. The company’s profits also rose by 16% year-on-year to $7.79 billion.
The positive financial results contributed to a rise in Meta’s shares in after-hours trade, and the company’s stock price has already more than doubled since the beginning of the year. Investors seem to support Mark Zuckerberg’s cost-cutting and refocusing efforts within the tech giant.
While Meta’s current outlook is promising, it still faces challenges, including a weak advertising market, tough competition in advertising and artificial intelligence, and the ongoing uncertainty regarding the payoff of its virtual reality investments. However, the company’s strong momentum positions it well to tackle these hurdles in the second half of the year.
