Meta and Twitter - a "Goliath vs Goliath" Story

"LET'S GO FOR THEIR BREAD AND BUTTER."

It was an all-caps call to arms.

And the attack that followed couldn't have come at a more precise moment.

Fortunes shift and wane in Silicon Valley.

It's an arena where only the strongest survive. A cutthroat world with success often born from others' missteps and failures.

Giants have been dispatched by one false move. While others have been crippled permanently.

But those that refuse to give up... those are worth watching.

Meta Platform's (META) stock chart is the epitome of a momentum trade. Shares have surely and steadily climbed higher, from $122.82 in January to $293 yesterday.

That's a gain of 138.5% in a little more than six months.

The company has toned down its talk and investment in the bungling metaverse. Instead it's turned its attention to artificial intelligence (AI).

That's revived its bottomline, as well as interest in shares.

But is the company's latest move another metaverse misstep... or the next big windfall for Mark Zuckerberg?

Ever since Elon Musk bought Twitter for $44 billion in October 2022, millions of users have been in search of an alternative. Of course, there are plenty attempting to stake claim to that title... Bluesky, Mastodon, Substack Notes, T2... Yet none have the reach, infrastructure, or interface most users are looking for.

But once the exodus of high-profile names from Twitter began, Zuck and his team saw dollar signs.

In November 2022 - when shares were below $100, plunging on the company's metaverse failures - Meta employees began brainstorming on building the next Twitter.

They spied Musk's missteps. They saw advertisers fleeing. And they decided to stab right at the heart of his business.

The result is Threads... And for the Twitter knockoff, business is booming. The platform saw 10 million sign ups in the first 7 hours... It hit 30 million users in less than a day. That's equal to 10% of Twitter's total user base.

With a pace like that, it's no surprise hours after the launch of Threads, Meta shares received not one, but two price-target hikes. That one-day surge in sign-ups and the raised outlook by Wall Street only adds fodder to the potential Musk-Zuckerberg fisticuffs.

Here's to high returns,

Matthew