Meta to take on Twitter
Meta Platforms is reportedly exploring the creation of a standalone social network that allows users to share text updates, potentially putting it in direct competition with Twitter. The move comes as Twitter is going through a major transactional stage with it’s new ownership, which has seen user volumes soar on Musk’s new “Free Speech: model. The company is currently trying to turn a money losing business model into a profitable business one, which means less reliance on Advertisers, in order to avoid narrative pressures and transition to a more fee based independent platform to avoid the pressures of societal norms.
Facebook and Instagram have done has executed their monetizing strategy well with Meta reporting massive profits compared to Twitter’s losing streak, prior to its purchase.
Meta’s success in monetizing its users is due in large part to its sophisticated advertising platform, which uses advanced algorithms to target users with relevant ads based on their interests and online behavior. This has enabled the company to generate high levels of revenue per user, with each of its nearly 3 billion daily active users representing over $40 in revenue, compared to just $16 per Twitter user.
The decision to create a standalone social network for text updates is a shrewd move by Meta. While Facebook and Instagram are primarily visual platforms that focus on sharing photos and videos, Twitter has always been more text-focused, allowing users to share short, snappy messages known as tweets. By creating a social network that is specifically designed for sharing text updates, Meta could attract users who prefer this format over visual content.
Furthermore, by launching a Twitter competitor, Meta could potentially capture a larger share of the digital advertising market. This would further cement the company’s dominance in the online advertising space and put it in a strong position to compete with other tech giants such as Google and Amazon.
Of course, launching a new social network is no small feat, and Meta will face a number of challenges as it seeks to take on Twitter. Building a user base from scratch is difficult, and the company will need to invest heavily in marketing and user acquisition to attract a significant number of users. Additionally, the social media landscape is constantly evolving, and new competitors could emerge at any time, potentially disrupting Meta’s plans.
Despite these challenges, however, Meta’s decision to explore the creation of a new social network for text updates is a smart move that could pay off handsomely in the long run. With its sophisticated advertising platform and large user base, the company is well-positioned to succeed in this space and potentially dominate the digital advertising market for years to come.
META Forescast & Analysis
The average analyst target price for Meta Platforms Inc. over the next 12 months is USD 176.38, with an average analyst rating of Strong Buy. Stock Target Advisor’s analysis is Slightly Bullish, based on 8 positive signals and 4 negative signals. The stock price has changed by -3.10% over the past week, +3.08% over the past month, and 0% over the last year, with the last closing price at USD 179.51.