Facebook pays for all its mistakes

[ramus]

It might be late but it's strong, 100 Billion has to hurt, this isn't enough but it's something.


Facebook pays for all its mistakes at once, and it is a big bill

Published: July 26, 2018 9:44 a.m. ET

https://www.marketwatch.com/story/fa...ill-2018-07-25

After surviving a wave of controversies, revenue-growth warnings potentially erases more than $100 billion in market cap

Facebook Chief Executive Mark Zuckerberg -— and Facebook’s stock — weathered congressional testimony earlier this year, but couldn’t withstand a weak forecast in Wednesday’s earnings report.

By
Therese
Poletti
Columnist

Facebook Inc. appears to finally be paying for the impact of fake news in the 2016 elections and user privacy concerns, with the stunning disclosure of a revenue deceleration in the second half of this year sending shares on a mind-blowing plunge Wednesday afternoon.

During a conference call Wednesday, Facebook FB, -18.37% Chief Financial Officer David Wehner predicted bad news for the second half, and the company’s shares immediately began a drastic retreat in the extended session. Should the after-hours bloodbath continue into Thursday’s trading session, Facebook would see a $100 billion blow to its market cap after shares plunged 20%.

The decline was stunning not only because of the scale, but because Facebook had managed to avoid this type of punishment through a multitude of sins too numerous to fully list here. While the Cambridge Analytica controversy weighed on the stock, it had easily rebounded from those declines to post record highs heading into Wednesday’s report.

Even during Chief Executive Mark Zuckerberg’s congressional hearings earlier this year, the company’s shares rebounded during his testimony. Facebook seemed to have become the Teflon company, recalling references to Ronald Reagan’s Teflon-coated presidency in the 1980s.

However, when it comes to finance, the numbers matter much more than the delivery.

While investors managed to stomach the parade of bad headlines Facebook has suffered over the past year, they apparently aren’t sticking around for the effects that Wehner outlined Wednesday. Wehner told investors that Facebook’s “total revenue growth rates will continue to decelerate in the second half of 2018, and we expect our revenue growth rates to decline by high single-digit percentages from prior quarters sequentially in both Q3 and Q4.”

More from Therese: With 20%+ earnings growth baked in, the drama for tech this quarter will be in the forecasts

Wehner cited a combination of currency headwinds, a big push by the company into new products, and anticipated loss of some users due to new privacy policies. Amid the revenue slowdown, Wehner said Facebook would maintain its plans to spend heavily on some of those initiatives to combat the issues Facebook has faced of late, which Zuckerberg reiterated would weigh on profitability eventually.
Should antitrust laws be enforced against the tech giants' monopolies?

“Clearly, Facebook is more focused this year on strengthening content quality and platform security, which likely accounts for part of the deceleration in revenues and user growth,” Colin Sebastian, an analyst with Robert W. Baird, wrote in a note to clients. “We note that our surveys earlier this year had suggested some ‘Facebook fatigue’ which may now be showing up in results.”

One analyst concluded in a quick calculation that Wehner’s statement would mean Facebook revenue growth slowing to about 20% in the fourth quarter, from 42% in the quarter reported Wednesday. For comparison, Facebook revenue grew 47.1% overall in 2017, and 52.7% in 2016.

Many analysts were rather dumbstruck on the conference call, with some stammering a bit as they asked questions trying to get their heads around a decline in revenue-growth that had long been presaged but never actually arrived. Wehner warned exactly two years ago this month of a coming revenue slowdown, due to a slowing ad load, but it still had not happened.

When the revenue cliff was finally outlined Wednesday, it was paired with a stall in user growth that could be even more of a sign of backlash against Facebook. Early in the company’s call, Zuckerberg said Facebook had lost a million monthly active users in Europe because of new, more detailed privacy disclosures called GDPR.

Now, as investors mull Facebook’s surprising forecast for revenue growth to sharply decelerate in the second half of the year, some may be hoping that Wehner was just the boy crying wolf again. But based on all the controversies that have surrounded Facebook this year — especially its role in the Cambridge Analytica scandal, where data from 87 million user profiles was scraped and used for marketing purposes during the 2016 campaign — Facebook is finally paying for its sins.

[Michelle Marie]

They are not done paying. Wait until the lawsuits!

They are on my list to be reckoned with. I deleted my account, and they just started sending me emails again.

When I was at a meeting about Smart Meters, one person mentioned using Facebook to disseminate information, 3 people spoke up: I said I don't use Facebook, another said it's a tool of the CIA, and I can't remember what the third one said, but it was enough to give the message that Facebook is not our tool of communication.

This type of inter-group communication will only increase the mass exodus from Facebook.

Since necessity is the mother of invention, I have no doubt solutions will emerge.

MM

[Valerie Villars]

Heaven help Facebook if Michelle Marie has them in her sights.

[Michelle Marie]

Posted by Valerie Villars (here)
Heaven help Facebook if Michelle Marie has them in her sights.

LOL! I'm just going to send a letter.

Their own blowback will take care of the rest!!!


MM

[ramus]

Karma does exist .... sometimes it's not instant ..... but there .... thank the heavens for confirmation.

[ichingcarpenter]

The Weird DARPA/Facebook “Coincidence” You Never Heard About

Ever hear about “Lifelog?” You know, the DARPA project to create an automatically updated, itemized, organized, electronic list of every interaction you have, every event you attend, every place you go and everything you do? The project that was announced as canceled the very same day Facebook launched? Well, neither had I? In today’s Thought for the Day we explore the Lifelog/Facebook “coincidence” and what it tells us about our wired world.

Source: https://youtube.com/watch?v=1_yMGQ5Uv0I

Also Mark Zuckerberg, was born in 1984

[BMJ]

Posted by ramus (here)
Karma does exist .... sometimes it's not instant ..... but there .... thank the heavens for confirmation.

The boomerang is Karma's weapon of choice, which will always ensure a righteous return to sender.

[conk]

Buy low. The storm will pass and the stock value will soar again. People just can't control themselves. They must post inane BS every single day.

[prc]

I would like to Report that Facebook deleted 197 pages and accounts that posted conservative content ahead of presidential election in Brazil. Facebooks acuse those pages of Fake News but it is deleting only right wing messages. This is not a case of Fake News, this is a case of censorship and attempt to silence and supress right wing voices.

[A Voice from the Mountains]

Posted by conk (here)
Buy low. The storm will pass and the stock value will soar again. People just can't control themselves. They must post inane BS every single day.

What would you be investing in? You really think Facebook is going to have a future after acting as a private intelligence-gathering operation and selling the data to China and everyone else? When all of this comes out in its full glory, you may be investing in MySpace again.

I don't think this is the end. This is only the beginning. Investors are dumping stock because they've got advance warning of something. The rest of the company's investors will be left holding the bag when the rest of the company collapses.

[Mike Gorman]

You know, this matter has different angles concealed within the apparently obvious one of 'privacy'. It is kind of ironic that the media platform which has, in any way, offered a major challenge to the much discussed 'Mainstream Media Empire' is the one that is copping so much flack.
Yes, I know there are issues of 'data sharing', but to me all of this is a huge red herring.
When the matter of 'Cambridge Analytica' was presented my immediate reaction was to think: The establishment media groups are trying to build an excuse, a scapegoat for the huge visceral reaction from 2016 - Brexit/Trump were not anticipated to be successful, remember this.
I do not believe that Zuckerberg intended his social media business to become the main conduit, the principle means by which alternative media was able to reach so many in the 'Heart Land' of political UK/USA - NO, he did not, it just so happens that the conservative, and libertarian communicators were much more savvy. The digital literacy of Brexit & Trump campaign builders was much higher, they were more in tune with their audience than the establishment, the Mainstream.

OK, so you think Facebook is a CIA, deep state spying platform, a weaponized form of digital media - I call bull****!
Yes, Silicon Valley has links with the deep state, and Google is also a very worrying internet giant - but I do not actually think these entities are active NSA/Intelligence community tools, the people that make up these agencies are not absolute, their own digital literacy is not absolute. These agencies are in fact out of step with digital culture.
It was the use of these platforms by alternative media which gave Brexit, and Trump the edge.
These days, it is all about "Critical percentages" - we need a certain number of people among the public to believe and think a certain way for that idea/ideology/belief to become THE opinion of the public.
I think that this anti social media, and anti-Facebook propaganda is a way for the mainstream, and innately establishment interest groups to strike back at the alternative media groups.

The Empire Strikes Back!
Consider, that the growth, and success of the libertarian movement, 'Populism' if you like, was directly down to Facebook, YouTube, Twitter being used to promote the anti-left information. Truth about the Clintons, about the corruption and pedophilia among the ruling elite was syndicated on these platforms. Brexit/Trump would not have been possible without social media.
I would just like to say that there is much more to this issue than all of your anti-Facebook virtue signalling contains. Don't be so quick to jump on this bandwagon of activism, the establishment and left orientated groups hated the outcomes from 2016, just consider how those outcomes were executed, and you have your answer about why all of this anti-social media/Internet campaign. I don't believe them, I do not support this anti-Facebook trend.
The mainstream media empires want Infowars, and all of the libertarian blogs, and social media posts to go away!
We need more building, more digital literacy, more alternative action - don't be so quick to support these ****wits who wish to shoot the messenger. Critical thinking people, it is very useful.

[norman]

I'd be more inclined to associate Facebook (Zukerberg) with Soros than anything else.

I don't think they anticipated how much traction the populist movement would get out of Facebook, and were content to let it continue on into the Hilary years so they could use it as part of the big takedown of their opposition, once the right lost and went mental about Hilary.

I'm sure that if they could do it all again, they would knock the alt-right off the SM platforms much earlier.

[ramus]

In response to Mike Gorman: The liberal factions have been pissed at Zuckerburg since the election they blame Facebook for Trump"s win. Anything they can say and do to hurt him, they will. I personally find it great, that they ( the democrats ) were beat because of there arrogance and ego, Cambridge Analytica was a available but Hillary didn't think she needed it. I would say that a lot of the people leaving Facebook are from the liberal front not the conservative side, they hate Trump and anything that got him elected. Be it bad perception or not Facebook was responsible for this election, in there eyes. So, yes I don't think Facebook is the bad guy here, i agree with Mike.

[happyuk]

I'm not so bothered about the surveillance thing as much as the proprietary lock-in of things like Facebook as opposed to web standards like www and smtp.

If Facebook had apis that allowed it to share across social media platforms instead of insisting on becoming the dominant defacto web then I wouldn't feel it was so evil.

Not that the average Facebook user cares when they are busy attention seeking and showing off their breakfast while reading the latest piece of long-debunked fake news on which they will add "OMG" to and share it on for more thickos and narcissists to repeat.

[Flash]

Posted by ramus (here)
In response to Mike Gorman: The liberal factions have been pissed at Zuckerburg since the election they blame Facebook for Trump"s win. Anything they can say and do to hurt him, they will. I personally find it great, that they ( the democrats ) were beat because of there arrogance and ego, Cambridge Analytica was a available but Hillary didn't think she needed it. I would say that a lot of the people leaving Facebook are from the liberal front not the conservative side, they hate Trump and anything that got him elected. Be it bad perception or not Facebook was responsible for this election, in there eyes. So, yes I don't think Facebook is the bad guy here, i agree with Mike.

this makes some sense. i was wondering yesterday why Zuckerberg has fallen out of favor.

On the other hand, Trump would not be president if he had not been pre-approuved. Those Trump zealot here have a blindfold on their eyes.

Since the children taken away from their parents at the border and also the way he cut ties with USA best neighbours and therefore impacting negatively its own country workforce is a huge sign that he is not genuinely for the people. 2 signs that made me sign out of any tiny remaining hope for any change in the right direction.

And Clinton would have been worst for the world.

(parents are actually deported back to Mexico without having found their taken away children, which remains in the USA somewhere, god knows where - are they sold??? How will the parents ever see their by now highly damaged children? to me this would be and is like Nazi regime, from these parents and children situation)

Where are the children? Where are the girls? this is revolting.

[Zak247]

It’s no doubt the elite wanted Trump to win, probably so the neocons could get their cred back, as you see them now all over TV lambasting Trump. That’s no coincidence. Because of Bush and Iraq, the neocons were invisible during Obama’s era.

Facebook and other Social media MAY have been enlisted but they weren’t really necessary.
The most likely scenario of how Trump won is actually through typical GOP election cheating just as Bush won twice that way.
They didn’t need FACEBOOK

https://www.gregpalast.com/election-stolen-heres/

[conk]

Posted by A Voice from the Mountains (here)

Posted by conk (here)
Buy low. The storm will pass and the stock value will soar again. People just can't control themselves. They must post inane BS every single day.

What would you be investing in? You really think Facebook is going to have a future after acting as a private intelligence-gathering operation and selling the data to China and everyone else? When all of this comes out in its full glory, you may be investing in MySpace again.

I don't think this is the end. This is only the beginning. Investors are dumping stock because they've got advance warning of something. The rest of the company's investors will be left holding the bag when the rest of the company collapses.

I certainly hope you are right, but it seems the memory of the masses is very short. There are countless examples of doomed companies, guilty of all manner of nasty things, being resurrected and thriving. I dare say most of the country hasn't a clue about what is going on with Facebook, however, the big money does know and they often lead the hapless in making decisions.

[ramus]

A good example of this is Well Fargo, what a sh.t company, many still bank there even thou they have proved over and over again that they don't give a hoot about there depositors. They would cheat, lye and steal, and people still stay. The sheep never seem to learn. GOD wake them up please!

[A Voice from the Mountains]

Posted by Flash (here)
On the other hand, Trump would not be president if he had not been pre-approuved.

Pre-approved by who? The same people who gave us Obama and Hillary? Somehow I doubt that is the case.

I appreciate the idea of a single faction controlling the entire world, which many people seem to believe, but I don't see it in practice. China and Russia are clearly acting in their own self interest, and there are lot of other examples in the world of legitimate disagreements and conflicts, including between the biggest of power brokers. If there is one faction ruling over all of this chaos you might as well say it's God and become religious about it, because that's essentially the level of faith required to see an orderly and consistent agenda in what is happening around the world.

Since the children taken away from their parents

As many as half of the "parents" aren't the children's parents at all, but human traffickers using children to gain entry.

We wouldn't have this problem at all if we can clearly convey to Mexico and other Latin American countries that they are going to be immediately deported and we are not letting anyone in illegally. "Somehow" they got the idea that what they're doing now is normal and acceptable. Who gave them that idea?

also the way he cut ties with USA best neighbours

Not hard to be our "best neighbors" when we literally only have 2 nations bordering us. Canada and Mexico are our only two neighbors so I guess they're the "best" by default, despite sucking billions of dollars out of our country and flooding our continent with uneducated third worlders.

and therefore impacting negatively its own country workforce

Unemployment is down, over a million new jobs have been created, the trade deficit is down, steel factories are opening back up.... What are you looking at that tells you that our workers are hurting?

Posted by Zak247 (here)
It’s no doubt the elite wanted Trump to win, probably so the neocons could get their cred back

I can't make any sense out of this either. Trump is clearly not a neocon, and the neocons in Congress have never been warm towards him. Only the Freedom Caucus strongly supports his agenda, though they aren't blind followers, and they're the opposite of neocons.

I hope we are using terms correctly here and understand what "neo-conservatism" actually represents in terms of policy, otherwise we are talking past each other.

[Zak247]

Posted by A Voice from the Mountains (here)

Posted by Flash (here)
On the other hand, Trump would not be president if he had not been pre-approuved.

Pre-approved by who? The same people who gave us Obama and Hillary? Somehow I doubt that is the case.

I appreciate the idea of a single faction controlling the entire world, which many people seem to believe, but I don't see it in practice. China and Russia are clearly acting in their own self interest, and there are lot of other examples in the world of legitimate disagreements and conflicts, including between the biggest of power brokers. If there is one faction ruling over all of this chaos you might as well say it's God and become religious about it, because that's essentially the level of faith required to see an orderly and consistent agenda in what is happening around the world.

Since the children taken away from their parents

As many as half of the "parents" aren't the children's parents at all, but human traffickers using children to gain entry.

We wouldn't have this problem at all if we can clearly convey to Mexico and other Latin American countries that they are going to be immediately deported and we are not letting anyone in illegally. "Somehow" they got the idea that what they're doing now is normal and acceptable. Who gave them that idea?

also the way he cut ties with USA best neighbours

Not hard to be our "best neighbors" when we literally only have 2 nations bordering us. Canada and Mexico are our only two neighbors so I guess they're the "best" by default, despite sucking billions of dollars out of our country and flooding our continent with uneducated third worlders.

and therefore impacting negatively its own country workforce

Unemployment is down, over a million new jobs have been created, the trade deficit is down, steel factories are opening back up.... What are you looking at that tells you that our workers are hurting?

Posted by Zak247 (here)
It’s no doubt the elite wanted Trump to win, probably so the neocons could get their cred back

I can't make any sense out of this either. Trump is clearly not a neocon, and the neocons in Congress have never been warm towards him. Only the Freedom Caucus strongly supports his agenda, though they aren't blind followers, and they're the opposite of neocons.

I hope we are using terms correctly here and understand what "neo-conservatism" actually represents in terms of policy, otherwise we are talking past each other.

I didn’t say Trump was a neoconservative, I doubt he even understands the term.

Trump is likely a psychological operation to restore their credibility.

They are using the folly of his presidency to make themselves look good in the American people's eyes.

Just like Obama was chosen to keep the people from storming the gates Trump is chosen to make the bastards look decent again.