|Day's Range||5.20 - 5.20|
Facebook and Amazon are closely being watched after ramping up lobbying records and enforcing antitrust laws. The companies will face investigations from the Justice Department and Federal Trade Commission. Yahoo Finance’s Brian Sozzi, Alexis Christoforous, and Dan Howley discuss on The First Trade.
Yahoo Finance's Jennifer Rogers discusses what to watch in the markets tomorrow.
Celebrity influencers can get upwards of $100k for a single post promoting a brand, but, more and more, consumers see past these endorsements. Kindra Hall, brand consultant, president of Steller Collective, and author of the new book: "Stories that Stick," joins Yahoo Finance to discuss how storytelling can help brands stand out among the changing influencer-driven landscape.
Facebook's CEO says he has already seen Russia and Iran trying to interfere in the 2020 election. Mark Zuckerberg says new security measures will target misinformation, including more prominent labels on posts that have false or partially false information. Facebook is also helping candidates monitor hacking threats. Ed O'Keefe reports.
Oct.21 -- Applied Techonomics senior advisor, Jeanne Zaino, discusses Facebook's 2020 election efforts. She speaks with Bloomberg's Sarah Frier and Taylor Riggs on "Bloomberg Technology".
Facebook revealed its plans to fight misinformation and voter suppression leading up to 2020. The announcement came the same day the social media giant said it removed four disinformation campaign that originated in Iran and Russia. Nick Thompson joins CBSN with a look at all the developments.
Facebook has taken down more suspicious accounts and announced details about its plan to protect the 2020 U.S. presidential election. CBS News national security reporter Olivia Gazis speaks to CBSN's "Red & Blue" about Facebook's strategy and the potential impact.
India's government asked Facebook Inc on Tuesday to help it decrypt private messages on its network, citing national security requirements in a court hearing on privacy rights on social media platforms. India's Attorney General K.K. Venugopal told the Supreme Court that it was the responsibility of social media companies to share data wherever there was a threat to national security.
(Bloomberg Opinion) -- Glamour stocks may be losing their allure.Buying profitable businesses at a reasonable price is one of the oldest and most trusted — and some might say boring — playbooks in investing. The father of security analysis, Benjamin Graham, plied the strategy, as did his protege Warren Buffett, legendary mutual fund manager Peter Lynch and countless other stock investors. But there’s been little interest in it in recent years, at least when it comes to U.S companies.Instead, investors have been betting on glamour stocks — companies with big expectations and pricey shares, but little or no profit — in the hope that they will blossom into cash cows like Facebook Inc. or Google parent Alphabet Inc. Think, for example, electric car maker Tesla Inc. or online video service Netflix Inc., or even pot stocks.Glamour has paid off big, not because those companies are suddenly minting fat profits — on the contrary, many still lose money — but because their popularity has boosted their stock prices. Glamour stocks, or shares of the most expensive and least profitable U.S. companies, have outpaced boring stocks, or shares of the cheapest and most profitable companies, by an astounding 16.8 percentage points a year over the last six years through August, including dividends. That’s when they began to take off relative to boring stocks, according to numbers compiled by Dartmouth professor Ken French.It’s not a bet for the faint of heart. Glamour stocks are likely to continue fetching high prices as long as investors hold out hope that profits will materialize, but if they tire of waiting, the reversal could be intense because glamour stocks have a lot of room to deflate. They traded at a weighted average price-to-book ratio of 10.1 as of August, compared with just 0.8 for boring stocks. Since 1963, the first year for which numbers are available, that difference was only higher during the height of the dot-com bubble in 1999, and not by much. In fact, there are signs that investors are beginning to lose their patience. Some of the most highly anticipated initial public offerings of glamour companies this year have been a bust so far. Shares of ride-hailing companies Uber Technologies Inc. and Lyft Inc. are down 30% and 43%, respectively, since their public market debuts. The ETFMG Alternative Harvest ETF, the first U.S.-listed marijuana exchange-traded fund, has tumbled 51% over the last year. And who can forget WeWork’s implosion from a $47 billion valuation in January to a proposed bailout that could value the office-sharing company below $8 billion.It’s not just a few companies. I compared the stock price performance of the companies in the Russell 3000 Index with their profitability over the last year. Roughly 45% of companies posted a profit margin greater than the weighted average margin for the index, and their stock prices rose by an average of 2%. By contrast, the stocks for the 30% with a profit margin less than the index declined by an average of 3%, and the remaining 25% that lost money were down an average of 10%. The results are similar when looking at other measures of profitability such as return on equity.Those results are also echoed by French’s numbers. His glamour stocks are down 4.3% over the last year through August, while the boring ones are up 6.4%.Even if the recent reversals turn out to be a short-term blip, investors must also navigate the likelihood that many glamour stocks will disappoint eventually, if they survive at all. That’s evident in their unflattering longer-term record. Glamour stocks have beaten boring ones just 25% of the time over rolling six-year periods since July 1963, counted monthly. And the vast majority of those victories are clustered around only two periods — the current one and a similar growth-at-any-cost binge during the late 1960s and early 1970s.That earlier episode is instructive. Then as now, investors eagerly paid any price for companies that held out the promise of outsized growth. The results were great while everyone played along. During the six-year period from October 1966 to September 1972, glamour stocks beat boring ones by 16.8 percentage points a year, a margin that matches glamour’s success over the last six years. But when those companies stumbled or failed to deliver on their promise in the ensuing years, investors abandoned them. During the following six years that ended in September 1978, glamour’s fortunes reversed, and boring stocks won by 17.3 percentage points a year. Sure, those with the foresight to pick future winners from a sea of glamour stocks have little to worry about. But, to rip off Dirty Harry, this might be a good time for investors to ask themselves one question: Do I feel lucky?To contact the author of this story: Nir Kaissar at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nir Kaissar is a Bloomberg Opinion columnist covering the markets. He is the founder of Unison Advisors, an asset management firm. He has worked as a lawyer at Sullivan & Cromwell and a consultant at Ernst & Young. For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Three U.S. lawmakers active in tech issues will introduce a bill requiring social networks like Facebook to allow users to pack up their data and go elsewhere, Warner's office said in a statement on Tuesday. The senators, Republican Josh Hawley and Democrats Mark Warner and Richard Blumenthal, are introducing the bill at a time when there is growing concern that Facebook, along with Alphabet's Google, have become so powerful that smaller rivals are unable to lure away their users. The bill would require communications platforms with more than 100 million monthly active members - Facebook has more than two billion - to allow its users to easily move, or port, their data to another network.
Facebook will pay millions of dollars to some publications featured on its news page but nothing to others, as its efforts to rebuild trust divide the US media sector. The social media giant has offered no money to Reuters or Associated Press, according to people close to the discussions — arguing that wire services do not qualify despite offering seven-figure deals to rivals Bloomberg and Dow Jones. and Robert Thomson, chief executive of Dow Jones owner News Corp, are set to introduce the service on Friday.
Banks might have to cut ties with Facebook if the social media giant launches its Libra digital currency without fully addressing financial regulators’ money laundering fears, the chief executive of ING ...
Tight controls imposed by China have resulted in the ban of several foreign social media sites, like Facebook, but how did this come about?
(Bloomberg) -- Facebook Inc. Chief Executive Officer Mark Zuckerberg said employees are in touch with Elizabeth Warren’s campaign to address her concerns about the company’s decision to let politicians lie in ads.“Our teams are definitely in contact although I haven’t spoken to her personally about this,” he said in an interview that aired Monday on NBC Nightly News.Warren, a Democratic presidential candidate, recently ran a campaign ad saying Zuckerberg was endorsing Donald Trump. While the CEO is not doing that, she argued that he was in effect supporting Trump by allowing him to run ads with false information in them.Zuckerberg has said that politicians should be exempt from Facebook’s false advertising rules, so the media and the public can scrutinize what they have to say.Trump has been running video ads on Facebook claiming one of his key political rivals, Joe Biden, paid off Ukraine to fire a prosecutor investigating a company linked to his son, a claim that had already been debunked.To contact the reporter on this story: Sarah Frier in San Francisco at email@example.comTo contact the editors responsible for this story: Jillian Ward at firstname.lastname@example.org, Alistair BarrFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- When political outsider Joko Widodo was first sworn in as Indonesia’s president five years ago, a little company called PT GO-JEK Indonesia was barely known. Their rise together since then has broken a technology barrier that was holding back the world’s fourth-most-populous country and promises the chance for a better future.Jokowi, as he’s known, is starting his second term with the dramatic, yet pragmatic, appointment to his cabinet of Nadiem Makarim, the chief executive officer and co-founder of what’s now called Gojek, which has gone from ride-hailing novelty to one of the engines of tech transformation in Indonesia.At the time of Jokowi’s first presidential run, his tech ambitions centered on attracting device manufacturing in a bid to diversify the economy away from dependency on mining and energy. Then governor of Jakarta, he worked hard to lure Taiwan’s Foxconn Technology Group to build a factory to manufacture iPhones and create thousands of jobs.A deal signed with Foxconn Chairman Terry Gou in February 2014 to invest $1 billion into Indonesia amounted to a de facto endorsement of Jokowi’s economic chops, helping the former furniture maker win election as Indonesia’s first president who didn’t hail from the traditional elite or the military.The Foxconn investment never materialized. But it never really had an impact on Jokowi’s standing as the development of Indonesia’s technology sector came from a very different direction. A play on the word ojek, or motorcycle taxi, Gojek was mostly operating as a call center for courier deliveries and motorbike rides when Jokowi took office. Three months later, Gojek launched the mobile app that would make it one of Southeast Asia’s biggest startups, with a valuation of around $10 billion.Today, Gojek offers ride hailing, food delivery, payments and a host of other digital products not just in Indonesia, a nation of some 265 million people, but throughout the region. More importantly for Jokowi, it has more than 2 million drivers and 400,000 merchants on its platform — creating far more jobs and livelihoods than an iPhone factory ever could.In Indonesia, Gojek is now a national champion. Its riders vie on Jakarta’s notoriously crowded streets with those of Singapore-based rival Grab Taxi Holdings Pte, both of them oddly liveried in green and black. They notably upended Uber Technologies Inc.’s expansion into Southeast Asia and are vigorously competing around the region, total population nearly 650 million.Now, Gojek will have a man on the inside. Harvard-educated Makarim, 35, resigned from the company Monday in order to join the cabinet, portfolio to be determined. The appointment is in line with Jokowi’s goal of bringing industry professionals and millennials into the inner circle. It’s hard to discern who’s the bigger winner. Imagine Mark Zuckerberg resigning from Facebook Inc. to join President Donald Trump’s cabinet. Neither carries the baggage of their American counterparts. But Makarim is a political novice and risks becoming just one more pawn in the constant maneuvering that consumes Indonesian governments.Jokowi set policies in motion early in his first term to open the economy. They have had mixed success. A deep streak of economic nationalism has long frustrated foreign direct investors. Growth has chugged along at a steady 5% for years. He has struggled against entrenched interests. Yet at a time when regulators and traditional taxi companies worldwide were pushing back against ride-hailing companies, Jokowi’s government refused to crush them. His biggest contribution may have simply been to get out of Gojek’s way. Being a local favorite hasn’t hurt Gojek. It now has a coveted e-money license, allowing it to offer financial services to millions of customers who don’t have a bank account or credit card. Grab now gets around this by teaming up with local partner OVO.Gojek isn’t alone in Indonesia’s expanded tech universe. Online travel provider Traveloka, e-commerce company Tokopedia and online marketplace Bukalapak have all become unicorns. From $8 billion in 2015, the internet economy grew to $40 billion this year and will triple again to $130 billion by 2025, according to a research report from Alphabet Inc.’s Google, Temasek Holdings Pte and Bain & Co.The common element: Each operates in a space called O2O, or online-to-offline. They leverage internet technology to deliver physical-world services, helping people eat, shop, and travel in a nation where infrastructure is unevenly parceled out across 18,000 islands straddling the Indian and Pacific oceans.A strong and viable digital services economy employing millions was an accidental achievement of Jokowi’s first term. It may not be enough to sustain future economic growth, however. The president and the entrepreneur will need to sit down and write the second act.To contact the author of this story: Tim Culpan at email@example.comTo contact the editor responsible for this story: Patrick McDowell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Facebook Inc. said it will set up a dedicated U.K. operations center during the next election, to counter misinformation networks, fake news stories and outside interference from other countries.Britain has consistently criticized Russia for attempting to manipulate elections around the world, while insisting there’s no evidence of interference in U.K. votes such as the 2016 Brexit referendum. But Facebook has been accused of hosting misinformation and advertisements seen only by narrowly targeted audiences.Writing in the Telegraph newspaper, after the company announced it had discovered four separate misinformation networks tied to Iran and Russia, Facebook executive Richard Allan said the company knows that “social media can bring significant new risks to the political process.”“People who want to interfere unlawfully with the outcome of an election will use every available means to try and do so, including platforms like ours,” wrote Allan, vice president for public policy in Europe. “We’ve built stronger defenses to prevent people using our platforms to interfere with elections and we’re continuing to make improvements in several key areas.”Facebook has pledged to label content as “false” or “partly false,” using an independent fact-checker, and to expand scrutiny of ads that have political content.To contact the reporter on this story: Robert Hutton in London at email@example.comTo contact the editors responsible for this story: Tim Ross at firstname.lastname@example.org, Andrew PollackFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Twitter Inc. will create a new policy meant to combat manipulated media, including deep fake videos, ahead of the 2020 U.S. Presidential election.The company doesn’t currently have a policy for how to handle deep fakes, altered videos that distort a subject’s appearance or speech while still looking authentic. Twitter plans to create one, but will first ask the public for feedback, a spokesman said on Monday.Deep fakes and other misinformation have already been part of the 2020 election cycle. Earlier this year, a doctored video of House Speaker Nancy Pelosi that made the congresswoman look like she was slurring her words made the rounds on Facebook. The social-media giant refused to remove it, prompting rebukes from Pelosi and an eventual admission from Chief Executive Officer Mark Zuckerberg that Facebook should have flagged it as false more quickly.Facebook is also under pressure from Democratic presidential candidates for failing to fact-check political advertising after President Donald Trump shared an ad claiming known falsehoods about rival Joe Biden.To contact the reporter on this story: Kurt Wagner in San Francisco at email@example.comTo contact the editors responsible for this story: Jillian Ward at firstname.lastname@example.org, Alistair Barr, Andrew PollackFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
FAANG stocks are popular. • Over a long stretch, Netflix’s stock significantly outperformed the Dow Jones Industrial Average (DJIA) S&P 500 Index (SPX) and the Nasdaq-100. • Netflix had been the darling of FAANG stocks.