Meta Platforms is the largest social media company with 4 billion monthly active users, boasting a "Family of Apps" consisting of Facebook, Instagram, Messenger, and WhatsApp. The company sells ads to digital advertisers using customer data from its app ecosystem. Compared to its competitors in the Interactive Media & Services industry, Meta has a high Price to Earnings ratio of 27.79, a high Price to Book ratio of 9.86, and high Revenue Growth of 21.61%.
Meta Platforms, Inc. (NASDAQ: META), the parent company of Facebook, Instagram, Messenger, and WhatsApp, has seen its social networking app Threads gain significant traction. According to Fast Company, Threads now boasts over 400 million monthly active users, marking a substantial increase from its initial launch in July 2023 [1]. This growth is particularly notable given the competitive landscape, where Twitter's X has traditionally held a dominant position in daily mobile usage.
Threads' user base has expanded rapidly, with a 128% increase in daily active mobile users from June 2022 to June 2023, according to data from Similarweb. Although X still leads in daily mobile users, the gap is narrowing, with Threads now at 115.1 million daily active users compared to X's 132 million [1]. In the U.S., the difference is even smaller, with Threads having 15.3 million daily mobile users compared to X's 22.9 million [1].
Threads' success can be attributed to its unique features and community-building capabilities. The app has been designed to foster a friendlier and less combative environment compared to other platforms, with 63% of posts being text-only and users following fewer accounts than on Instagram [1]. The app has also been adding features at a rapid pace, including trending topics, live sports scores, a developer API for automated posts, and deeper connections to the fediverse [1].
This growth comes at a critical time for Meta Platforms, as the company continues to face challenges and competition in the social media landscape. The recent analyst upgrades and increased institutional ownership reflect investor confidence in the company's ability to maintain its momentum. For instance, Accuvest Global Advisors recently invested $3.83 million in Meta Platforms, acquiring 6,643 shares, while several other institutional investors have also increased their stakes in the company [3].
Despite these positive developments, Meta Platforms still faces significant hurdles. The company's high Price to Earnings ratio of 27.79 and Price to Book ratio of 9.86 indicate that investors are paying a premium for the company's growth prospects. However, the high Revenue Growth of 21.61% suggests that investors remain optimistic about the company's ability to generate substantial returns [2].
In conclusion, Meta Platforms' Threads is gaining significant traction, with a user base that is nearly neck and neck with Twitter's X in daily mobile usage. The company's strategic focus on community-building and feature-rich design has contributed to its rapid growth. As Meta Platforms continues to navigate the competitive social media landscape, investors will be closely watching the company's ability to maintain its momentum and deliver on its growth potential.
References:
[1] https://www.fastcompany.com/91384230/meta-threads-just-achieved-its-biggest-milestone-yet
[2] https://finance.yahoo.com/news/cmb-international-securities-raised-firm-140920417.html
[3] https://www.marketbeat.com/instant-alerts/filing-accuvest-global-advisors-makes-new-383-million-investment-in-meta-platforms-inc-nasdaqmeta-2025-08-12/
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