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Meta Platforms (META) Will Test Direct Messaging on Its Threads App

Meta Platforms (META) Will Test Direct Messaging on Its Threads App

Earlier today, social media giant Meta Platforms (META) said that it will start adding direct messaging to its Threads app in order to help attract more users. The feature, which rivals already offer, will first be tested in markets like Hong Kong and Thailand by giving users a dedicated inbox in Threads so they no longer need to switch to Instagram to send messages, according to CEO Mark Zuckerberg. Interestingly, though, Threads messages will not be encrypted for now.
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It is worth noting that Threads launched in 2023 as a competitor to Elon Musk's X (formerly Twitter) after his takeover of the platform. The app now has over 350 million monthly active users, and Meta has connected Threads with Instagram to help grow its user base and compete with platforms like X, TikTok, and Reddit for ad dollars. In addition, Meta expanded Threads advertising to all eligible advertisers globally in April, but stated that it does not expect Threads to drive major revenue growth in 2025.
As a result, research firm Emarketer expects Threads' U.S. monthly active users to grow by 17.5% to 60.5 million next year, passing X, which is expected to drop by 14.4% to 50 million users. With growing U.S. trade restrictions and new AI-powered ad targeting, social media companies are adding new features and improving user experience in order to stay competitive in a crowded market. Indeed, Meta's latest move with Threads is part of this trend to stand out and attract more engagement.
Is Meta a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on META stock based on 42 Buys, three Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average META price target of $698.07 per share implies that shares are fairly valued.

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