|Day's Range||36.80 - 36.80|
Yahoo Finance's Zack Guzman talks with Instagram's Director of Fashion Partnerships, Eva Chen on her top tips for having the perfect Instagram.
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.
A state-level antitrust investigation into the social networking giant now has the backing of a bipartisan group of 47 attorneys general, New York Attorney General Letitia James said Tuesday. The Democrat launched the probe last month with seven other states and the District of Columbia. It focuses on whether Facebook’s (FB) dominance is stifling competition, limiting choice for consumers and costing advertisers more money.
(Bloomberg) -- Snap Inc. reported revenue and user growth that beat analysts’ estimates, boosted by an increase in downloads of the revamped Android version of its app around the world.The company reported 210 million daily active users for its Snapchat application in the three months ended September, beating the 206 million average estimate of analysts surveyed by Bloomberg. Third-quarter sales jumped 50% to $446 million, compared with $437.9 million projected by Wall Street.Snapchat, which lets people send video and photo messages that disappear, seems to have mostly recovered from a rocky performance after its 2017 initial public offering. It has weathered executive departures, user defections and tough competition from Facebook Inc.’s Instagram.The company has improved Snapchat’s performance, especally on Android phones, and increased the amount of fun, creative tools for its users, causing daily users to open the app 30 times a day on average, according to the company.Now, advertisers are slowly looking to Snapchat as an alternative to the technology industry’s much larger platforms.“Google and Facebook dominate mobile advertising, but there is plenty of room for other winners as mobile time spent continues to scale,” said Rich Greenfield, an analyst at Lightshed Partners. “Our conviction in Snapchat’s recovery has grown meaningfully over the course of 2019, as we hear positive first-hand feedback from advertising clients.”Snap shares fell 6.8% in extended trading after closing down 4% to $14. The shares have more than doubled in value so far this year, but aren’t yet past the $17 IPO price.The company has been working toward reducing expenses. Its net loss narrowed 30% to $227 million, or 16 cents a share. Analysts had projected $262.3 million.Snapchat has become a poster child for Facebook’s competitive hold on the social media market. Facebook and its photo property Instagram have repeatedly copied Snapchat’s best features, cutting into its potential. Now, Facebook is under investigation by the Justice Department and the Federal Trade Commission for antitrust violations. Snapchat’s recovery could weaken the government’s argument.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, Molly SchuetzFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Mark Zuckerberg plans to defend Facebook Inc.’s Libra project before a congressional panel on Wednesday, saying the cryptocurrency won’t be launched without approval from the U.S. government.In prepared remarks ahead of a hearing in the House Financial Services Committee, he argued the company is seeking to offer an affordable solution to existing methods of sending money abroad.“People pay far too high a cost -- and have to wait far too long -- to send money home to their families,” wrote Zuckerberg, chief executive officer of the world’s largest social network. “The current system is failing them.”The hearing is focused on Facebook’s impact on the financial services and housing sectors, so Libra will be a major focus. But questions are likely to range into other topics that have caused controversy for the company, including user privacy, election ads and its targeted-advertising business.https://t.co/eFyzoBjPI2Plus, more background here: https://t.co/iqN6nTElDQ pic.twitter.com/QizHr0og9F— Bloomberg Crypto (@crypto) October 22, 2019 Libra has faced intense criticism from politicians and lawmakers. When David Marcus, the executive in charge of the project, testified before the same committee in July, one of the main concerns was Facebook’s deep involvement. Other questions raised by regulators have included Libra’s potential to become a currency that governments have less control over -- possibly enabling criminal activity -- and whether Facebook should be trusted with the data generated by transactions on the platform. That perception problem has not been lost on Zuckerberg.“This is something that needs to get built, but I understand we’re not the ideal messenger right now,” he wrote in his testimony. “We’ve faced a lot of issues over the past few years, and I’m sure people wish it was anyone but Facebook putting this idea forward.”If Facebook is prevented from building a new global cryptocurrency, tech companies in other countries like China might step in to take advantage of the opportunity, the CEO warned.“While we debate these issues, the rest of the world isn’t waiting,” he wrote. “If America doesn’t innovate, our financial leadership is not guaranteed.”The Libra Association, the new currency’s governing body, was officially created last week, which means Facebook is now just one of 21 members, each with the same voting control over important decisions. That means Zuckerberg won’t technically be able to make commitments about the currency or its rollout.“We don’t expect to be leading those efforts going forward,” Zuckerberg said in his written testimony, released Tuesday. “The Libra Association has been created, has a governance structure in place, and will be driving the project from now on.”Still, he stressed that Facebook will not be part of launching the Libra payments system anywhere in the world until U.S. regulators approve. “Last time I testified before Congress I talked about taking a broader view of our responsibility. That includes making sure our services are used for good and preventing harm,” he wrote.Members of the committee will have high expectations for the CEO, whose company is still very much the face of the project. One thing he will be able to discuss is how Facebook plans to integrate the new currency into existing products, like its WhatsApp and Messenger mobile apps. Facebook’s main social network has more than 2 billion users, and altogether it owns four separate digital platforms that have at least a billion users each.“You’ve got a huge wealth of data that they’ve harvested from their users’ activities,” Representative Warren Davidson, a Republican from Ohio who is on the committee, said. “Do you now mingle that same database with financial transactions?”Even as it has come under fire since unveiling the project in June, Facebook has sought to keep the focus on the primary goal for Libra -- to fill a real need in the space of international money transfers.People are sending money to low- and middle-income countries more than ever, but the cost of doing so has remained high. According to an April report from the World Bank, annual remittance flows to these countries reached $529 billion in 2018, an increase of almost 10% over the previous record high of $483 billion in 2017. During that time, the cost of sending $200 abroad was still high, at 7%, the report said. Using a bank is often the most expensive way to send money, with an average fee of 11% in the first quarter of 2019, the World Bank said.(Updates fifth paragraph with details about lawmakers’ concerns)\--With assistance from Sarah Frier.To contact the reporters on this story: Julie Verhage in New York at email@example.com;Kurt Wagner in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, Andrew PollackFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Facebook Inc. shares fell the most in two months after a state antitrust investigation into the social-media company widened, with dozens more states joining the probe led by New York.Facebook dropped after the New York Attorney General Letitia James announced Tuesday that 45 states -- plus Guam and the District of Columbia -- are investigating whether the company harmed competition. Shares fell 3.3% to $183.44 at 3:13 p.m. in New York, the most since Aug. 14.“Big Tech must account for its actions,” Louisiana Attorney General Jeff Landry, whose state joined the probe, said in a statement. “I am proud to join my Republican and Democrat colleagues in efforts to ensure tech giants can no longer hide behind complexity and complicity.”The expansion of the investigation deepens the antitrust scrutiny into Facebook at the state and federal levels. In addition to the attorneys general, the Federal Trade Commission, the Justice Department and the House Judiciary Committee are conducting their own investigations.Separately on Tuesday, the Justice Department’s antitrust chief, Makan Delrahim, who is probing large internet platforms as part of a broad review of competition in digital markets, said at a Wall Street Journal tech conference in California that a breakup of a tech company is “perfectly on the table” if justified by the evidence uncovered in the probe.James, a Democrat, has said the state antitrust probe aims to find out whether Facebook’s actions endangered user data, reduced the quality of consumers’ choices or increased the price of advertising, its main source of revenue. State attorneys general led by Texas are separately investigating Alphabet Inc.’s Google for possible antitrust violations.A Facebook spokesman said the company intends to cooperate with the state attorneys general.“People have multiple choices for every one of the services we provide,” the company said. “We understand that if we stop innovating, people can easily leave our platform. This underscores the competition we face, not only in the U.S. but around the globe.”On Monday, James hosted a meeting of policy experts to discuss the strengths and weaknesses of various antitrust legal theories involving Facebook, according to a person familiar with the gathering. They also reviewed Facebook’s acquisitions of Instagram and WhatsApp, as well as privacy issues and the company’s power in the digital-advertising market, the person said. The Wall Street Journal first reported the meeting.James and a bipartisan group of state attorneys general met earlier this month with key officials at the Justice Department and the FTC to discuss the investigation. The meetings raised the prospect that the states could join the federal probes, similar to the way states collaborated with the epic U.S. antitrust case against Microsoft Corp. that started in the 1990s.(Updates with share price in second paragraph.)To contact the reporters on this story: Erik Larson in New York at firstname.lastname@example.org;David McLaughlin in Washington at email@example.comTo contact the editors responsible for this story: David Glovin at firstname.lastname@example.org, Steve StrothFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Tight controls imposed by China have resulted in the ban of several foreign social media sites, like Facebook, but how did this come about?
Facebook CEO plans to tell House committee that the company will not go forward with a digital currency until U.S. regulators sign off.
(Bloomberg) -- Facebook Inc. is following other tech titans like Microsoft Corp. and Google, pledging to use its deep pockets to ease the affordable housing shortage in West Coast cities.The social media giant said Tuesday that it would commit $1 billion over the next decade to address the crisis in the San Francisco Bay Area, building as many as 20,000 new homes that are accessible to teachers, nurses, first responders and other essential workers. A quarter of the funds are earmarked for a partnership with California to construct housing on state-owned land in areas where there aren’t enough residences.“State government cannot solve housing affordability alone, we need others to join Facebook in stepping up,” California Governor Gavin Newsom said in the statement. “Progress requires partnership with the private sector and philanthropy to change the status quo and address the cost crisis our state is facing.”Newsom, who campaigned last year with the promise of building 3.5 million homes in the state to ease the shortage, has been under pressure to deliver. This month, he signed legislation that’s intended to curb rent growth. But he’s made clear that the state won’t be able to solve its problem without building many more new homes. Recent data suggests that permits for new construction have fallen this year, calling into question whether the state will be able to make progress on his goal.While researchers have said there are other barriers to construction in California, the success of Facebook and other technology companies has contributed to soaring housing costs in the San Francisco Bay Area and greater Seattle, where Microsoft is based. The firms employ tens of thousands of high earners who have bought or rented homes, leaving fewer options for poor and middle-income residents. San Mateo County, which includes Facebook’s headquarters in Menlo Park, added more than 13 jobs for every new unit of housing between 2010 and 2015, according to an analysis by Up for Growth, a group that advocates for more construction.That imbalance has contributed to a growing backlash against tech firms at the same time they’re facing tough questions about their market power, their role in spreading disinformation and their approach to user privacy. Facebook Chief Executive Mark Zuckerberg is set to appear for a public hearing before the House Financial Services Committee on Wednesday in Washington. That committee, run by Rep. Maxine Waters, a Democrat from California, oversees housing and urban development issues.“A company like Facebook wants to build all the good will that it can, and this is certainly one way to do it,” said Margaret O’Mara, a University of Washington history professor and author of “The Code: Silicon Valley and the Remaking of America.” “I’m glad that big tech companies are stepping up to address the problem, but it’s going to require much more than this.”Facebook said that $150 million of its pledge would go toward an affordable housing fund set up by the Partnership for the Bay’s Future, an organization backed by Zuckerberg and his wife Priscilla Chan. Another $25 million will go toward a teacher-housing initiative that was announced earlier this month and $350 million will serve as “additional commitments” that will be allotted to efforts that are deemed effective. The final $225 million is related to land that the company previously purchased and has zoned for housing.That’s similar to what Google is pursuing with the lion’s share of its own $1 billion pledge to build housing in the Bay Area, which was announced in June. Microsoft led the pack with a $500 million commitment to Seattle-area housing in January.(Updates with Zuckerberg testimony in the seventh paragraph; professor’s comment in the eighth.)\--With assistance from Kurt Wagner.To contact the reporter on this story: Noah Buhayar in Seattle at email@example.comTo contact the editors responsible for this story: Craig Giammona at firstname.lastname@example.org, Christine MaurusFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Facebook Chief Executive Mark Zuckerberg plans to acknowledge before Congress that Facebook is not the "ideal messenger" for its Libra cryptocurrency project, given ongoing criticism of the company. In prepared testimony made available on Tuesday, Zuckerberg plans to tell lawmakers he supports delaying Libra's launch, currently set for mid-2020, until U.S. regulatory concerns are fully addressed.
Facebook CEO Mark Zuckerberg plans to tell lawmakers that he understands Facebook is not the “ideal messenger” for its cryptocurrency project and he supports delaying Libra’s launch until regulatory concerns are addressed.
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.
Facebook CEO Mark Zuckerberg says the company is increasing transparency about ads after Facebook received backlash for allowing political ads with false claims. CNET senior producer Dan Patterson joins CBSN with more on what Facebook is doing ahead of the 2020 election.