Meta's Threads Set To Enter EU Market In December
Portfolio Pulse from Benzinga Neuro
Meta Platforms Inc.'s (NASDAQ:FB) social media platform Threads is set to launch in the EU this December after a successful launch in other markets in July. The EU launch was delayed due to strict online service regulations, but Threads will comply by offering a consumption-only option without the need for a personal profile. Adam Mosseri, head of Instagram, announced a feature for users to delete or deactivate their Threads profile. Meta's CEO, Mark Zuckerberg, reported Threads has nearly 100 million monthly users. The EU expansion is timely as advertisers like Apple Inc. (NASDAQ:AAPL) and Disney (NYSE:DIS) have paused spending on rival platform X after Elon Musk's remarks.
November 30, 2023 | 3:13 pm
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NEUTRAL IMPACT
Apple Inc. has paused advertising spending on a rival platform, which may indirectly benefit Meta's Threads as it expands into the EU.
Apple's decision to suspend advertising on a rival platform may not directly impact its stock price but could indirectly benefit Meta's Threads. However, the effect on Apple's stock is likely to be neutral in the short term as its core business is not significantly affected by these advertising decisions.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
Disney has also suspended advertising on a rival platform, which could indirectly benefit Meta's Threads during its EU expansion.
Disney's advertising pause on a rival platform could indirectly benefit Meta's Threads, but the direct impact on Disney's stock is likely to be neutral. Disney's broader business and revenue streams are diverse, and changes in advertising spend on specific platforms are unlikely to have a significant short-term impact on its stock.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
Meta's Threads is expanding into the EU, which could increase its user base and appeal to privacy-conscious consumers, potentially boosting Meta's market position.
The EU expansion of Threads is a strategic move that could attract new users and advertisers, especially with the current advertising pullback from rival platforms. This positive development is likely to be viewed favorably by investors, potentially leading to a short-term uptick in Meta's stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90