Meta-Twitter rivalry intensifies as lawsuit looms

JESS JONES

META and Twitter’s rivalry has escalated with the successful launch of Threads and the threat of a lawsuit, but analysts suggest that Twitter still has fight left.

Threads, Meta’s new app, amassed over 70m subscribers within days of its recent launch. The app’s availability caused a staggering 455 per cent surge in Meta’s stock, leading analysts to speculate a potential $1 trillion

(£779m) market valuation.

“Twitter isn’t dead yet,” said CMC markets analyst Danni Hewson, suggesting users who have spent years building up a following will want to retain that –though it has “potential to be a major disrupter”.

Meta shares are up two per cent over the last five days, which “doesn’t indicate great fear or excitement around this new venture,” according to Hargreaves Lansdown equity analyst, Sophie-Lund Yates.

CEO Elon Musk announced on Friday that Twitter is set to take legal action against Meta, alleging the misappropriation of intellectual property by hiring ex-Twitter employees to create Threads, which bears striking similarities to Twitter. “Competition is fine, cheating is not,” said the billionaire.

Meta has denied the claims stated in Twitter’s legal letter. City A.M. approached both parties for further comment on the legal action.