“Threads” is Tightening the Noose on Elon’s X

It seems Elon Musk's X (formerly known as Twitter) has hit a bit of a growth plateau, and it’s not just because of the billionaire’s sometimes polarizing tweets and robotic dance moves. 

Mark Zuckerberg’s Threads, the final boss of copycats, is starting to grab some serious attention, and it’s making Musk shake in his boots.

In the latest undisclosed data drop, X claimed 251 million daily active users in the second quarter of this year. A modest 1.6% bump from the same time last year. 

Not horrible, but definitely a far cry from the high double-digit growth it boasted before Musk decided to add it to his collection of expensive toys for $44 billion back in October 2022. 

Meanwhile, Zuckerberg’s Threads, the shiny new toy, has already racked up 175 million monthly active users. X might still have the upper hand with its 600 million monthly users, but Threads is proving it’s not just a flash in the pan. According to Sensor Tower, Threads has 38 million daily users, which, while impressive, suggests people aren’t quite as hooked on it as their morning coffee just yet.

Since Musk took over, X has seen advertisers head for the hills. His approach as a “free speech absolutist” and the sweeping cuts to content moderation have turned the platform into the wild west of social media, which hasn’t sat well with many woke brands. Critics say this has led to a more toxic user experience, but Musk argues that his drastic actions were necessary to keep freedom of speech.

Zuckerberg wasn’t about to let Musk hog the social media spotlight. So, he unleashed Threads, aiming to knock X off its perch. If you can't beat Musk in the cage, might as well do it on the internet. Threads’ launch last July was nothing short of spectacular, with 100 million sign-ups in just the first week. Despite this explosive start, usage did nosedive soon after, with Zuckerberg himself admitting the platform blew up before they were ready for it. 

Yet, Threads has been steadily gaining traction, especially since its expansion into the EU and the enlistment of celebs like Taylor Swift. Plus, having big brother Instagram in its corner, funneling around two-thirds of its web traffic, certainly doesn’t hurt. Meta’s strategy of using its existing moderation teams to keep Threads free of polarizing content appears to be paying off, positioning it as the kinder, gentler alternative to X.

A recent survey by Ofcom found that 17% of UK adults use X as a news source, but engagement has been slipping, especially during big election campaigns in the US, UK, and France. X, however, disputes these findings, claiming significant user growth in the US and UK since last August, though they’ve been a bit coy with the actual figures.

Threads, on the other hand, is striving to carve out a niche as a less combative, more user-friendly space. According to Adam Mosseri, head of Instagram and Threads, they’re intentionally steering clear of amplifying news or political content to avoid the “scrutiny, negativity…or integrity risks.” It’s a delicate balancing act—wanting to engage users without diving headfirst into controversy.

Adding spice to the rivalry, Musk recently mocked Zuckerberg's Fourth of July video. In the clip, Zuck, with long hair flowing, donned a tuxedo and sipped beer on his hydrofoil to Springsteen’s "Born in the USA." It quickly went viral with over 700,000 likes.

But Musk was unimpressed: "May he continue to have fun on his yachts. I prefer to work," he quipped on X. Dave Portnoy of Barstool Sports chimed in, saying, “Zuck will always be uncool.” No matter how hard you try, you’re never beating the lizard allegations Mark.

Zuckerberg has hinted at integrating Threads into the fediverse—a collective of social networks using the ActivityPub protocol, allowing messages to cross between platforms. But Mosseri recently tempered those expectations, suggesting that while it's a long-term goal, it's proving tricky to implement due to compliance and privacy challenges.

Musk, never one to shy away from a bold move, announced he’s planning to ditch the “repost” and “like” buttons on X. Users will soon have to swipe left or right to show their appreciation, Tinder-style. Whether this will spark a new wave of user engagement or further complicate the platform’s usability remains to be seen.

In the meantime, no one can deny that Zuckerberg’s Threads is clearly on the rise, while Musk’s X is struggling to regain its momentum. META stock is up 54% year to date, which must feel like a victory lap for Zuck, hydrofoil and all. 

Stock.News has positions in Meta and Tesla.