Twitter rival Threads overtakes ChatGPT as the most rapidly downloaded app ever – BofA

Bank of America analysts reiterated a Buy rating on Meta Platforms (NASDAQ:) after Threads – a Twitter rival launched on Wednesday – attracted over 30 million registered users in less than 24 hours.

As a result, Threads has become the most rapidly downloaded app ever, overtaking OpenAI’s ChatGPT.

Post notes that the download frenzy was fueled by many celebrities joining Threads and posting screenshots of the app on their other social media accounts.

“Strong early user traction is exceeding our expectations and is likely to continue for a few days, aided by IG integration and strong press coverage. Average time spent per user also an important key metric to measure platform stickiness and potential for future success,” the analysts said in a client note.

It was reported yesterday afternoon that Twitter sent a cease-and-desist letter to Meta threatening legal action over Threads.

“Meta has a history of successfully replicating competitor apps without serious legal challenges. Until further facts surrounding the claim emerge or further steps are taken by either party, we anticipate that the current threat of legal action will have limited immediate impact on the ramp of the app. However, if Threads was to grow to a size similar to, or larger than, Twitter, we could see possibility of antitrust issues with cross platform data use,” BofA analysts added.

Finally, they add that Meta and its CEO Mark Zuckerberg have “big ambitions” for the new project. The analysts project a $2 billion-$3 billion 2024 revenue opportunity for the social media giant.

This calculation is based on Meta capturing 250 million average users in 2024, including a revenue ramp starting next year and reaching 50% of Twitter’s 2021 APRU (average revenue per user).

“Even if Meta holds back ads for a few years to aid app traction, given Meta’s strong execution history in maintaining users and scaling revenues, we believe the Street will give Meta credit for monetization at or above Twitter levels ($23 ARPU) if users are engaged (strong time spent metrics). Key execution milestones from here are ramping up influencer/celebrity content contributions, and adding features that users want, which we expect to come quickly,” the analysts concluded.

Meta Platforms shares trade 0.7% lower in early Friday trading.