It\u2019s a huge day in the social media world as two titans of the sector go head-to-head in a brutal battle for supremacy.<\/p>\n
No, it\u2019s not the proposed cage fight between Mark Zuckerberg and Elon Musk\u2014it\u2019s the billionaires\u2019 battle for eyeballs as
\n Meta
\n Platforms launched its Twitter rival Threads.<\/p>\n
Meta\u2019s timing could have been better. When Musk first bought Twitter users hunted for an alternative and they ended up flocking to Mastodon\u2014a rival microblogging service.<\/p>\n
But Twitter\u2019s recent operational problems, general discontent with the platform, and social media users\u2019 curiosity have combined to give Threads a fast start. Ten million users signed up for the platform, which is linked to Meta\u2019s Instagram app, in the first seven hours, Zuckerberg said.<\/p>\n
That\u2019s all very well, but Twitter has more than 350 million estimated monthly users and it hasn\u2019t turned a profit since 2019. The company is now worth just a third of the $44 billion Musk paid for it, according to Fidelity after it marked down the value of its stake in May. Those two things make Meta\u2019s move to compete with the platform all the more puzzling.<\/p>\n
However, if the company\u2019s play is all about attracting more users to its suite of apps, to win advertisers over, then on that metric it may be close to an early success.<\/p>\n
The Facebook owner was at a crossroads earlier this year as the realization hit that its massive metaverse bet wasn\u2019t quite going to plan. Apple launching its own mixed-reality headset is piling on the pressure.<\/p>\n
While settling on what it thinks will be the next big thing, Meta is dabbling in a new social-media platform, introducing some new AI features, and maintaining a scaled-back presence in the metaverse concept.<\/p>\n
Investors may need more convincing about that plan\u2014the stock has climbed 145% this year but remains more than 20% below its September 2021 record high.<\/p>\n
Threads also marks a major milestone for competition among the Big Tech names. When it comes to competing against Twitter, if Meta can\u2019t win, who can?<\/p>\n
The bout has started and round one seems to be going to Meta.<\/p>\n
\u2014Callum Keown<\/em><\/p>\n *** Join Barron\u2019s deputy editor Alex Eule and associate editor for technology Eric J. Savitz today at noon when they discuss the outlook for tech companies and individual stocks. Sign up here.<\/em><\/p>\n Try your hand at this morning\u2019s Barron\u2019s crossword puzzle and sudoku games. For all games, including a digital jigsaw based on the week\u2019s cover story, click here.<\/em><\/p>\n Treasury Secretary Janet Yellen\u2019s trip to Beijing beginning today aims to deepen communication between the U.S. and the People\u2019s Republic of China, but it also comes at a time of growing tension between the two countries over technology. Yellen\u2019s visit follows a trip by Secretary of State Antony Blinken last month.<\/p>\n What\u2019s Next:<\/strong> Yellen has said that fully separating the U.S. economy from China\u2019s would be \u201cdisastrous for both countries\u201d and destabilizing for the rest of the world, adding that the two nations \u201ccan and need to find a way to live together and share in global prosperity.\u201d<\/p>\n \u2014Janet H. Cho and Liz Moyer<\/em><\/em><\/em><\/p>\n Although nearly all the policy makers at the Federal Open Market Committee\u2019s meeting opted to skip a rate hike in June, they aren\u2019t likely to do so in July. With inflation well above the Federal Reserve\u2019s 2% target rate, investors can expect borrowing costs to rise through the end of 2023.<\/p>\n What\u2019s Next:<\/strong> The probability of a quarter-point rate hike in July is currently at 88.7%, according to the CME FedWatch Tool. The Fed\u2019s updated Summary of Economic Projections showed officials believe the federal-funds rate will hit 5.6% by the end of 2023, implying two more quarter-point hikes.<\/p>\n \u2014Megan Leonhardt and Janet H. Cho<\/em><\/em><\/p>\n JetBlue Airways ended its alliance with American Airlines Wednesday, choosing not to appeal a court ruling ordering the pair to unwind their partnership. But American said it intends to move forward with an appeal.<\/p>\n What\u2019s Next:<\/strong> JetBlue\u2019s decision is a gamble, but one that appears to make sense. However, it all depends on the merger being approved, otherwise the airline will be left to rue missing out on two growth opportunities.<\/p>\n \u2014Callum Keown<\/em><\/em><\/p>\n Americans are still buying new cars this year, despite rising interest rates and persistent inflation. The auto industry is on pace for a better-than-expected 12% to 14% increase in new vehicle sales for the first half of 2023. Electric vehicle tax credits of $7,500 have boosted U.S. sales.<\/p>\n Nissan Motor,<\/span><\/p>\n Subaru,<\/span> What\u2019s Next:<\/strong> GM plans to introduce electric versions of its Chevy Silverado and Chevy Blazer later this year, and recently began production of its Silverado EV Work Truck, which could begin deliveries this quarter. Blazer EV production is also expected to begin in the third quarter.<\/p>\n \u2014Janet H. Cho and Al Root<\/em><\/p>\n Traffic for OpenAI\u2019s ChatGPT chatbot may have started to simmer down, according to the research firm What\u2019s Next:<\/strong> Microsoft could become the second member of the $3 trillion market value club, following \u2014Liz Moyer and Tae Kim<\/em><\/em><\/em><\/em><\/p>\n***<\/h4>\n
Yellen\u2019s China Trip Comes Amid Heightened Tech Tensions<\/h2>\n
\n
\n Micron Technology.<\/span>
\n China\u2019s President Xi Jinping urged companies to stop decoupling<\/strong> their supply chains from foreign countries.<\/p>\n<\/li>\n<\/ul>\n***<\/h4>\n
Fed Policy Makers Unlikely to Skip July Rate Hike<\/h2>\n
\n
***<\/h4>\n
\n JetBlue
\n Ends Its Alliance With American Airlines<\/h2>\n\n
***<\/h4>\n
New Car Sales Beat Expectations in First Half of 2023<\/h2>\n
\n
\n and
\n Honda Motor
\n all reported strong first-half vehicle sales, and electric-vehicle makers
\n Tesla
\n and
\n Rivian Automotive
\n beat expectations<\/strong> for their respective second-quarter global deliveries.
\n Ford Motor
\n reports results today.<\/p>\n<\/li>\n
\n announced second-quarter U.S. deliveries of 691,978 vehicles, up from 603,208 vehicles the prior quarter, and about 19% higher<\/strong> from the same time last year. That includes 15,354 EVs, up 110% from second-quarter 2022.<\/p>\n<\/li>\n***<\/h4>\n
ChatGPT\u2019s Traffic Drops for First Time Since Launch<\/h2>\n
\n Similarweb,<\/span>
\n which says worldwide traffic in June for the bot fell 9.7% from May and the number of unique visitors dropped 5.7%. It\u2019s the first month traffic has fallen since November.<\/p>\n\n
\n Microsoft\u2019s<\/span>
\n Bing AI chatbot. <\/p>\n<\/li>\n
\n Apple
\n as early as 2024 as growth in its cloud infrastructure business and projects such as ChatGPT drive investor enthusiasm, Wedbush analyst Dan Ives said. <\/p>\n***<\/h4>\n