|Day's Range||11.50 - 11.50|
Treasury Secretary Steve Mnuchin stated that he met multiple times with representatives from Facebook and told them that their launch for LIbra was premature, as they haven't addressed "fundamental issues," including the prevention of money laundering and other illicit activity. Yahoo Finance's Adam Shapiro, Julie Hyman and Jessica Smith discuss on On the Move.
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.
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.
A New York-led probe of Facebook Inc into allegations that the company put consumer data at risk and pushed up advertising rates has expanded to include attorneys general from 47 U.S. states and territories, New York Attorney General Letitia James said in a statement on Tuesday. The investigation of Facebook announced in September had included Colorado, Florida, Iowa, Nebraska, North Carolina, Ohio, Tennessee and the District of Columbia. Facebook shares were down more than 2% at $184.73 on Tuesday.
Halloween — or should we say Howl-o-ween — is going to the dogs. Americans will spend $490 million on costumes for their pets this Halloween, according to the National Retail Federation, which is more than double what they dropped to dress their dogs, cats and other critters in 2010. Sara Ochoa is one of the 29 million people getting her furbaby into costume for the occasion.
Amazon.com Inc. (NASDAQ: AMZN) said it will release third-quarter earnings Thursday and hold a conference call to discuss the numbers at 5:30 p.m. HQ2 time, 2:30 p.m. HQ1 time. AMZN stock price at Tuesday's open: $1,785.66 per share One-week change: Up $43.55 Translation: Jeff Bezos' wealth bump from the one week of appreciation is about $2.6 billion. Here are a few things that we will be looking for in the quarterly earnings: Amazon said to expect third quarter revenue between $66 billion to $70 billion, according to its second quarter forecast.
Facebook Inc. disclosed late Monday that it spent $4.8 million to influence U.S. lawmakers and regulators in the third quarter, lifting its year-to-date spending on Washington lobbying a level that already nearly matches 2018’s full-year total.
Oct 22 (Reuters) - The state probe of Facebook on allegations that the company put consumer data at risk and pushed up advertising rates has expanded to attorneys general from 47 states and territories, New York Attorney General Letitia James said on Tuesday in a statement. (Reporting by Diane Bartz)
(Bloomberg) -- Mark Zuckerberg may be the most visible man in Washington these days –- an impressive feat considering his competition.The Facebook Inc. chief executive officer has been everywhere. After a day of meetings on the Hill last week, he gave a public speech at Georgetown University on free expression. The next day he appeared on Fox News, and a few days later on NBC Nightly News with Lester Holt. Monday morning, Zuckerberg hosted a press call with journalists about Facebook’s election efforts ahead of the 2020 U.S. elections.It’s been Zuckerberg overload, but none of those appearances promise to be as interesting or unscripted as what’s still to come: On Wednesday, Zuckerberg will take questions at a public hearing before the House Financial Services Committee on Capitol Hill. The group of 60 politicians, led by one of Facebook’s most vocal critics in Representative Maxine Waters, a Democrat from California, will ask about Facebook’s plans for a new global cryptocurrency – and pretty much anything else that comes to mind over what promises to be a several-hour affair.“There’s going to be a wide-ranging number of issues. This is not only about Libra,” David Marcus, the Facebook executive leading the company’s cryptocurrency push, told reporters last week at a dinner in Washington. Marcus appeared before this very committee in July to answer questions about Libra for hours. “It’s hard to predict how these things will go,” he added.Zuckerberg, once a rare visitor to the nation’s capital, will make his third public appearance there over the past month when he arrives at the House hearing this week. The 35-year-old CEO met with a number of politicians in late September, including members of both parties, and also held a closed-door meeting with President Donald Trump in the Oval Office. Last week, he met with Waters for a pre-hearing meeting ahead of his speech at Georgetown.Wednesday’s House hearing is titled: “An Examination of Facebook and Its Impact on the Financial Services and Housing Sectors.” While there is no clear agenda, it’s expected that many of the questions will be about Libra, the company’s newly proposed cryptocurrency. And, given the billing, there will also probably be questions about Facebook’s targeted ad business. Facebook has been accused of letting advertisers discriminate with their ads on the network. Politicians, though, are free to ask whatever they want.“I’m sure a lot of people will dig in on privacy,” said Warren Davidson, a Republican from Ohio who is on the committee. “You’ve got a huge wealth of data that they’ve harvested from their users’ activities. Do you now mingle that same database with financial transactions?”Representative Lance Gooden, a Republican from Texas, said he is optimistic that Libra can succeed. His biggest issue is that the Libra Association is headquartered in Geneva instead of in the U.S. Gooden joined Waters on a trip to Switzerland in August to discuss Libra with local regulators. “We left thinking, ‘what a shame that something that could perhaps be a great thing for the future of the world economy is not going to be based in the U.S.,’” he said.Usually Zuckerberg sends other Facebook employees to these kinds of political hearings -- he’s invited to many of them all over the globe -- and many on his staff have appeared since Facebook’s role in the 2016 election first stirred up questions about how the service is used to disseminate news and election ads.Zuckerberg’s appearance will likely generate more interest and headlines than usual, but it’s possible there won’t be much more to learn. The company already announced a handful of election-related updates on Monday, including changes to how it labels misinformation and Pages for some state-run media organizations. Marcus answered questions for hours about Facebook’s cryptocurrency plans before this same committee in July, and has been on a media blitz himself in recent weeks as the group overseeing the new currency was formed just last week.The timing of the hearing may mean the public hears even less from Zuckerberg than politicians had hoped for. While Facebook and Marcus have been the clear leaders on the Libra project, the company is now just one of 21 members overseeing the currency and its governance, all with equal voting control.“He can’t be the face of [Libra]. That’s the interesting thing,” Marcus said. “Last week, because we were still leading this thing, he could have answered on behalf of the Libra Association. But he cannot engage or commit to anything on behalf of the Libra Association because he doesn’t have the power to do that.”Davidson says he’d be surprised if Zuckerberg can answer many questions on behalf of Libra, but does expect him to speak about Calibra, the division within Facebook that will handle the company’s new digital wallet product.The hearing is set to begin Wednesday at 10 am E.T. Each of the committee’s 60 listed members will be allowed 5 minutes to speak or ask questions on top of opening statements and breaks. Assuming most of them show up to take advantage of their allotted time, that means the hearing could last well over five hours.“My hope is that Mr. Zuckerberg will walk away feeling pleasantly surprised that Congress stands ready to work with him,” Gooden said.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, Molly Schuetz, Robin AjelloFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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.
Shares of Facebook were falling Tuesday after it was revealed that 47 different state attorneys generals have now signed on to an antitrust probe that was first announced in September. The attorneys general of Colorado, Florida, Iowa, Nebraska, North Carolina, Ohio, Tennessee and the District of Columbia have joined New York Attorney General Letitia James on the leadership team investigating the company. "After continued bipartisan conversations with attorneys general from around the country, today I am announcing that we have vastly expanded the list of states, districts, and territories investigating Facebook for potential antitrust violations," James said in a statement Tuesday.
Investing.com - Facebook (NASDAQ:FB) slipped in midday trade on news that 46 state attorneys general have joined New York in an antitrust investigation into the social media giant.
(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.