3 Reasons Launching Threads Could Be a Horrible Move for Meta Platforms
Last week, Meta Platforms (NASDAQ: META) launched Threads, its answer to Twitter. Threads already has more than 100 million users, and it presents a new growth opportunity for Meta. But Threads also comes with challenges and risks.
Here are three reasons I think this might end up being a net negative for the company and why it doesn't make the stock a better buy.
Meta Platforms has a strong core business, but one thing that's weighing it down is the metaverse (i.e., its Reality Labs segment), where the company has been incurring billions of dollars of losses. My concern is that Threads could exacerbate those problems.
Source Fool.com
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