In Thursday’s pre-market, Meta Platforms (META) stock is rising toward $300 after Facebook’s owner launched a new social media platform to compete with Elon Musk’s Twitter.
META stock is up 1.6% early Thursday, trading at $299.
Meta Platforms stock news: Ten million people join Threads
The new Threads platform was constructed and published late Wednesday by Mark Zuckerberg’s Instagram unit. The company released iOS and Android versions in the Apple Store and the Google Play Store, respectively. According to Instagram, 10 million individuals joined up for Threads in the first seven hours it was open to the public.
Unlike Instagram’s photography-first style, Threads’ focus on text-based publishing or “micro-blogging” is more akin to Twitter. Some opponents have already labeled the new network as a clone of Twitter.
One significant disadvantage of Threads appears to be that users must already have an Instagram account in order to sign up.
Musk and Zuckerberg are rumored to be fighting in public later this year. Musk proposed a “cage match” between himself and the CEO of Meta Platforms in a Twitter conversation about Zuckerberg’s plans to launch a competing micro-blogging site in June. Although Las Vegas has been proposed as a destination, no formal date has been set.
Musk, while being an aggressive tweeter, is not recognized for his fighting prowess, but Zuckerberg won a medal in a Brazilian jiu-jitsu competition earlier this year.
Meta Platforms stock prediction: $300 is a foregone conclusion, but what about $400?
META stock is already up 136% year to far after collapsing in 2022, and it has performed even better since the $88 low late last year.
Meta stock has now reached a point with significant psychological ramifications. The $300 level, in addition to being a large, round figure, functioned as barrier three years ago during the second half of 2020. This region, in particular, was difficult to overcome in both August and November of 2020. However, META stock is currently in the overbought zone on the weekly Relative Strength Index (RSI). A retreat appears to be highly important, and the $250 to $260 range has a track record of generating support.
If Threads is successful enough to bolster the stock, META will likely move slowly through the $300 to $350 range. This sector witnessed a significant amount of activity in late 2021 and appears to be a plausible location for profit-taking. According to this assessment, $400 in META’s future appears doubtful for the rest of the year.