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For Your Education and Enjoyment Meta vs OpenAI: Is Sora a True Threat to Meta's Dominance?Written by Leo Miller. Published 10/20/2025. 
Key Points - OpenAI just released a new social media app, Sora, creating a new threat to Meta Platforms.
- A Wall Street analyst lowered their Meta price target after Sora's release, noting that Meta could face its "ChatGPT moment."
- However, Meta has succeeded amid new social media entrants in the past. The company can fend off even the likes of OpenAI.
OpenAI's ChatGPT has undeniably taken the world by storm. The National Bureau of Economic Research estimates that roughly 700 million people, or about 10% of the world's population, had used ChatGPT as of July 2025. That is a remarkable adoption rate for a platform that launched in November 2022. The researchers conclude that no new technology has ever spread globally this fast. ChatGPT sparked widespread investor concern for Alphabet (NASDAQ: GOOGL), with some predicting it would materially weaken Google Search by offering a more conversational way to search the web. Yet Alphabet has remained resilient: Google Search revenues have risen 27% since Q4 2022, and the stock is up roughly 150% since the end of November 2022. Just like Microsoft and Adobe rode the software wave in Web 1.0, RAD Intel is riding the AI software wave in 2025. Their product helps brands instantly find the right audience and message using AI – solving the #1 waste in marketing: misfired ad spend.
With major brands already onboard and their Nasdaq ticker reserved, RAD Intel is early – but very real. Investors can still buy shares at just $0.81 through a Regulation A+ round. Lock in $0.81 shares today Still, at least one Wall Street analyst worries OpenAI's newest product could pose a challenge to another Magnificent Seven stock: Meta Platforms (NASDAQ: META). Analysts at MoffettNathanson recently lowered their Meta price target after OpenAI released Sora, arguing the app could threaten Meta in a way similar to how ChatGPT rattled Alphabet. Below, we break down that view and assess how significant a threat Sora might be. Sora: OpenAI's New Social Media App Breaks Onto the Scene Sora is a social media app similar to TikTok that lets users create, discover, and share short-form videos — except the videos are AI-generated. One standout feature lets users blend friends and celebrities into their clips, a capability that contrasts with Meta's competing AI-generated video platform, Vibes. That capability helped Sora gain early traction and user enthusiasm more quickly than Vibes. MoffettNathanson warns Sora could divert attention from Meta's apps and dent the growth of its advertising business. That is not an unreasonable concern: Sora recorded one million downloads in just five days after its Sept. 30 release, a pace that was faster than ChatGPT's initial growth. Still, there are several reasons to think Meta can withstand Sora's rise. Meta Has Withstood Past Threats, and Can Do So Again Even with ChatGPT and Sora's rapid adoption, both are tiny compared with Meta's massive user base. The company has just under 3.5 billion users — roughly five times ChatGPT's reach — giving Meta a major advantage when rolling out and scaling new products. MoffettNathanson describes social media as a "zero-sum competition for leisure time," suggesting new entrants simply siphon engagement from incumbents. But the firm also notes Meta has retained market share despite the arrival of TikTok and Snapchat. Those two observations weaken the argument that Sora will automatically lead to a material loss for Meta. Moreover, Meta has a proven playbook for responding to competitors: it often adapts the most successful features. Instagram Reels became a key growth driver after Meta moved into short-form video to compete with TikTok. If Sora proves popular, Meta can iterate on Vibes and incorporate Sora's best ideas. The company is also building proprietary AI models to reduce reliance on third-party technology, which should help over time. While that requires investment and time, Meta's commitment to AI development is among the industry's strongest. Despite Concern, MoffettNathanson Still Sees Strong Upside in Meta Sora could plausibly pull engagement away from Meta's apps in the short term, which might pressure near-term results and sentiment. But investors likely won't have clear visibility for several months. Meta's Q3 earnings report on Oct. 29 covers the three months ended Sept. 30, and OpenAI released Sora that same day, so Q3 results should not reflect any material impact. The company's Q4 report in late January or early February 2026 will likely be much more informative. It's also notable that MoffettNathanson remains constructive on Meta despite trimming its price target. The firm cut its target by $40 after Sora's launch, setting it at $890—still well above the broader consensus and implying significant upside from recent trading levels. Ultimately, as MoffettNathanson and other analysts have said, Sora is not an "immediate existential threat" to Meta. Nevertheless, its emergence is a material risk to monitor over the coming months.
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