Tech
Boxing
(CSA-Printstock/Getty Images)
Clear skies, ready for takeoff

Bluesky engagement seems to be punching way above its weight

While Meta pushes every Instagram user to Threads and X tries to shore up a disintegrating user base, the plucky indie social network is picking up steam because people actually seem to be using it.

Jon Keegan

It’s a crazy time for news publishers trying to share their stories on social media. Just a few years ago, Twitter and Facebook were the two big platforms to reach a huge audience of social-media users. Since Elon Musk’s purchase of Twitter and transformation into X, a mass migration of users has fled the platform, and the social-media landscape has splintered into pieces. Now, in addition to X, there is Meta’s Threads and Twitter spin-off Bluesky. But something interesting is happening with audience engagement on Bluesky.

Among this group of text-based platforms, X is still a juggernaut, with 535 million users overall. Both Threads and Bluesky have been adding over a million users per day recently, but Threads’ 275 million users dwarfs Bluesky’s 23 million.

Neglecting news

Meta has stepped back from positioning itself as a source for news, and across Instagram, Facebook, and Threads, news content does not get the same algorithmic boost that it used to. Elon Musk this week appeared to confirm that posts on X with links off the platform are deprioritized, which he referred to as “lazy linking”:

But over on Bluesky, news has no such algorithmic speed bump. Users have been noticing that while Bluesky’s audience is a mere sliver of X and Threads’ user bases, it has been delivering as much engagement as the bigger platforms, and in some cases eclipsing them. “Engagement” refers to how much users interact with any given piece of content, measured in likes, replies, or reposting a story.

At least anecdotally, medium-sized to large publishers have begun to report that internal data gives Bluesky a pretty remarkable edge.

bluesky-bostonglobe.com
@mkarolian.bsky.social

Let’s take a look at how engagement varies from platform to platform for some big news stories published by The New York Times, CNN, and The Wall Street Journal. But first, let’s look at the audience size for these publishers on each platform.

Engagement per million users

We picked three recent stories that were at least a day old, covered a few different topics, and were published by the official accounts for The New York Times, The Wall Street Journal, and CNN on X, Threads, and Bluesky.

To control for the vastly different size of the platforms, we assigned each story an “engagement per million users” score:

(Likes + reposts + replies) / (total number of users on platform / 1 million) = engagement per million users.

Of course, there are some limitations to this analysis. This experiment doesn’t control for the many, many variables that affect user-engagement numbers. For example, it doesn’t account for the weight of each type of engagement (a “like” is easier than a reply). Also, this does not account for the different political vibe of each platform, which could lead to certain stories getting very different reactions on different platforms. But when you plot out these scores, you do see much more engagement for the same stories on Bluesky.

Getting a consistent measure of active users on each platform is tricky. Using monthly active users as the devisor in this equation would be a more accurate way to measure this engagement rate, but we don’t have hard numbers for each platform. X says that it has 535 million “global monetizable monthly active users,” but Musk recently said that there are about 300 million daily active users. So even if that is accurate, X numbers might look close to Threads, as Meta says they have 275 million monthly active users.

Given that these are still generally similar orders of magnitude to overall user numbers, plugging in those estimates doesn’t meaningfully change what the chart shows: Bluesky sure looks hot right now.

Another possible explanation is that because Bluesky is new, it is probably just full of more fresh, engaged users. After all, X is carrying 18 years’ worth of users, and as a private company it doesn’t have to share as much detail about its users with regulators and investors.

News publishers are eager to find platforms that can get their stories in front of readers without fighting opaque algorithmic rules, so this increased engagement may lure more publishers to the platform.

With an eye on Bluesky’s skyrocketing growth, the other platforms may be taking notice. Just last week, Meta rolled out a flurry of features like allowing a non-algorithmic “followers” feed to be the default, and rolling out “starter packs,” which have been hugely popular on Bluesky.

More Tech

See all Tech
tech

Alphabet announces $80 billion equity raise to fund AI infrastructure, including a $10 billion bet from Berkshire Hathaway

To fund its rapidly expanding AI infrastructure push, Alphabet just announced a whopping $80 billion equity capital raise.

While concerns over share dilution sent the stock down slightly after-hours, the deal secured a major anchor partner: Berkshire Hathaway, which is backing the offering with a $10 billion investment. (Berkshire was run by Warren Buffett until he stepped down as CEO at the beginning of this year, handing the reins to Greg Abel.)

Alphabet plans to spend up to $190 billion on capex this year.

<10%

Despite a massive surge in corporate AI spending, the technology is broadly failing to deliver the massive cost reductions executives had anticipated, according to a new global survey from Bain & Co. shared with Bloomberg. The largest share of major companies measuring their AI returns — 40% — realized cost savings of 10% or less, with poor access to internal data cited as the primary roadblock. Most had expected higher returns. More concerningly, Bain warned that many companies are using their original, overly optimistic projections — rather than their actual savings — to justify funding their next wave of expensive AI investments, creating a “circular bet with a structural leak.”

tech

Anthropic confidentially files for IPO

Anthropic has filed confidentially with the Securities and Exchange Commission for its initial public offering. The IPO is expected to be one of the largest in US history, and will likely be joined by OpenAI, which is also expected to go public before the end of the year.

The company filed a draft S-1 form with the SEC, which does not indicate the price of the offering. The official public S-1, which will come later, will give potential shareholders a first look at the finances of Anthropic, which just last week announced that it raised $65 billion, reaching a valuation of $965 billion. This puts the company well ahead of archrival OpenAI, which is currently valued at $850 billion.

tech

Prosus may thwart Uber’s bid for Delivery Hero

Uber’s aggressive pursuit of Delivery Hero could hit a major roadblock. After the European food delivery giant rejected Uber’s initial $11.6 billion buyout offer, the American company pivoted, scooping up a 37% stake in the open market.

Now, Prosus, formerly Delivery Hero’s largest shareholder, is plotting a counteroffensive.

Thanks to an EU regulatory waiver Monday that temporarily pauses its mandatory stock sell-down, the Amsterdam-based investment firm is reportedly looking to either increase its stake or rally other shareholders against Uber. The goal: block the takeover entirely or force a significantly higher premium.

Prosus has warned about the loss of European tech relevance if a US giant swallows the company. Meanwhile, investors are loving the drama: the takeover tug-of-war, which also includes DoorDash, has sent Delivery Hero stock soaring over 75% in the past month.

Thanks to an EU regulatory waiver Monday that temporarily pauses its mandatory stock sell-down, the Amsterdam-based investment firm is reportedly looking to either increase its stake or rally other shareholders against Uber. The goal: block the takeover entirely or force a significantly higher premium.

Prosus has warned about the loss of European tech relevance if a US giant swallows the company. Meanwhile, investors are loving the drama: the takeover tug-of-war, which also includes DoorDash, has sent Delivery Hero stock soaring over 75% in the past month.

Latest Stories

Sherwood Media, LLC and Chartr Limited produce fresh and unique perspectives on topical financial news and are fully owned subsidiaries of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, Robinhood Money, LLC, Robinhood U.K. Ltd, Robinhood Derivatives, LLC, Robinhood Gold, LLC, Robinhood Asset Management, LLC, Robinhood Credit, Inc., Robinhood Ventures DE, LLC and, where applicable, its managed investment vehicles.