Meta's Instagram Threads is adjusting its algorithm to prioritize content from accounts users follow, reducing the amount of recommended content from non-followed accounts. This change aims to enhance user experience by showing more relevant posts, though it may decrease creators' reach to new audiences. The update comes as Threads faces competition from platforms like Bluesky, which is gaining traction despite having fewer users.
Meta CEO Mark Zuckerberg announced that Instagram Threads now has over 130 million monthly active users, up from 100 million in the previous quarter, and expressed confidence in its potential for success. Meta's family of apps, including Facebook, Instagram, Messenger, and WhatsApp, saw a total of 3.19 billion daily users and 3.98 billion monthly active users in the fourth quarter. Threads experienced a surge in downloads, becoming the sixth most downloaded app in December, following a period of decline. Meta also reported strong earnings, with $40.1 billion in revenue for the quarter and announced its first cash dividend of $0.50 per share.
Instagram Threads saw a significant increase in downloads in December, reaching the top 10 most downloaded apps across both the App Store and Google Play. The app's growth has been attributed to Meta's advertising push and its move into the "fediverse." Meanwhile, Instagram became the most downloaded app in December, surpassing TikTok, which has faced criticism for its e-commerce push. In contrast, X, the company formerly known as Twitter, saw a decline in downloads, indicating ongoing challenges following its rebranding.
Instagram Threads is introducing a Following feed, a highly requested feature that allows users to see posts only from the people they follow. The feed can be toggled on and off by tapping the home icon or Threads logo, but reopening the app may revert it back to the "For You" feed. The update also includes translations, accessible through a button on the bottom right of a post. Previously, Threads only displayed algorithm-determined posts from users and brands.
Instagram Threads, the text-based offshoot of Instagram, has become the fastest-growing platform ever, surprising both Meta (formerly Facebook) and Twitter. Within just five days of its launch, Threads had amassed over 100 million users, exceeding expectations and making it a serious competitor to Twitter. Meta employees were initially skeptical, but the app's attachment to Instagram and easy transfer of followers contributed to its rapid growth. Twitter employees now see Threads as their "first legit competitor," with many rooting for Meta's success over Twitter. Wall Street expects Threads to be a potential new source of revenue for Meta, with the app potentially reaching 10% of Instagram's daily active users and generating $8 billion a year in additional revenue.
Dow Jones futures, along with S&P 500 futures and Nasdaq futures, fell slightly as the stock market rally experienced a small decline due to rising Treasury yields and a stronger dollar. Meta Platforms launched its Twitter rival, Instagram Threads, with 10 million sign-ups in just seven hours. Google and Salesforce flashed buy signals, while MercadoLibre is on the verge of an early entry. Meta stock rose in extended trading. The market rally saw slim declines on the major indexes, with small caps losing slightly more. The 10-year Treasury yield rose to a four-month high of 3.94%.
