Wall Street brains mostly stumped by tech dilemmas 10 Sep 2018 Giant opportunities and pay packages lured Imran Khan and other rainmakers to Silicon Valley. Their record is mixed at best at Snap, Alphabet and Twitter. Raising capital is easy, instilling discipline harder, and finding ways to beat dominant rivals nearly impossible.
Jack Dorsey tops Sheryl Sandberg as tech’s DC rep 5 Sep 2018 The usually dry Twitter CEO seemed more genuine than Facebook’s polished No.2 at a Washington hearing. Dealing with fake accounts, election meddlers and the like may hurt growth. But the industry needs a good envoy to tackle the regulatory threat. Dorsey may be the one.
Chinese news app IPO delivers hilarious feed 23 Aug 2018 Tencent-backed Qutoutiao, or "fun headlines", filed to go public in New York hours after raising money privately. The unprofitable outfit pays users to read, lacks important licenses to operate in China, and even rights to its name are shaky. The prospectus befits the business.
Tinder parent gives Facebook a dating lesson 10 Aug 2018 Owner Match Group said the swiping app will have more than $800 mln in revenue this year. Shares have tripled since its 2015 debut as it rakes in money from subscriptions. The successful model only highlights the shortcomings of the social network’s wannabe status.
Pinterest shapes up for anti-millennial IPO 8 Aug 2018 The social app is among the last to tap public markets. Prince Alwaleed buying a stake in Snap suggests investors still like the sector. A valuation between the disappearing-message service and Twitter suggests Pinterest is worth around $13 bln, a tad more than last year.
Don’t expect tech giants to stifle Alex Jones 7 Aug 2018 Facebook, Apple, Alphabet et al have, after excessive vacillation, taken the hateful rantings of the Infowars founder off their platforms. As private companies, that’s their right. But until Jones is bankrupted for libel, he will have many other ways to spread his noxious bile.
Privacy builds a wider moat for Apple’s margins 31 Jul 2018 The iPhone maker’s premium prices and fast-growing services powered earnings in the latest quarter. Selling hardware rather than advertising once seemed like a weakness. But in the wake of Facebook’s woes, CEO Tim Cook is using data security to buff the brand – and profitability.
Twitter purges users and shareholders alike 27 Jul 2018 The social network’s efforts to reduce spam, fake users and toxicity shrank active monthly users. Investors fled as well. That leaves both the platform and valuation more salubrious. Healthy returns will now depend on finding growth.
New Facebook pessimism overshoots reality 26 Jul 2018 Forecasts of reduced growth and margins wiped nearly 20 pct, or about $120 bln, off the social network’s valuation. That’s an astonishing hit. Investors now implicitly expect growth to be run-of-the-mill within a few years. That’s replacing excessive optimism with undue glumness.
Investors hit brakes on record-high Facebook 25 Jul 2018 The social network’s stock closed at a new top on Wednesday, valuing it at $630 bln. Then came a sharp after-hours slide following earnings. Fake-news scandals, potential regulation and Mark Zuckerberg’s tin ear all raise big questions. The news feed could get a lot worse.
Facebook and Twitter are lucrative quagmires 24 Jul 2018 Bosses Mark Zuckerberg and Jack Dorsey are under fire for allowing misinformation and bullying to flourish on their social networks. Lawmakers and users are beginning to notice, but advertisers have a higher tolerance – and that’s what keeps the swamp bubbling.
Investors bet fake-news swamp is left undrained 17 Jul 2018 U.S. lawmakers grilled Facebook, Alphabet’s YouTube and Twitter about how they filter an ocean of content. Both questions and answers made any plausible bias-free approach seem remote. Yet the companies’ rising stocks suggest confidence that no serious regulation will follow.
Tech backlash grows in Silicon Valley’s back yard 2 Jul 2018 California will force internet companies like Google to give consumers more control over their information and stop it being sold to third parties. The law is narrow but the Golden State is often a litmus test for legislation that takes hold nationwide.
Facebook D.C. probe could open a can of worms 26 Jun 2018 Congress wants to hold the social-media platform accountable for Russian election meddling and other concerns. That could affect a key protection for internet firms, which have broad legal immunity for posted content. Reducing it would expose them to a rash of costly lawsuits.
Facebook is light on Washington friending skills 12 Jun 2018 Its lobbyists tried to do damage control in Congress as its data-sharing with China’s Huawei came to light. Their lack of answers left the impression they weren’t in the loop, and the company’s defensive tweets didn’t help. Facebook could use a lesson in diplomacy as well as transparency.
China hands Facebook its worst political misstep 6 Jun 2018 The social network was already in trouble for Russian election meddling. But its undisclosed data-sharing with Chinese phone maker Huawei will inflame U.S. politicians from both parties. The dalliance makes punishing legislation, and tougher scrutiny from watchdogs, more likely.
Facebook’s top two get a muddled message 5 Jun 2018 Most independent shareholders elected to nix the social network’s super voting rights. Yet they voiced approval for Mark Zuckerberg and Sheryl Sandberg. The strong showing for the boss and COO undercuts the argument to scrap the structure that keeps them entrenched.
Review: Mad men struggle in vain to preserve past 1 Jun 2018 A new book examines Madison Avenue’s uneasy relationship with Facebook. Advertising firms are trying to combat the social network’s clout with electronic exchanges and use of data. But author Ken Auletta merely flicks at the obvious: The middlemen don’t have a prayer.
Facebook has a boardroom problem – but what? 17 May 2018 Two proxy advisers offer investors different reasons to withhold votes from mostly different directors – ISS includes Mark Zuckerberg. The CEO has control, so any such move would only be a protest. Through the confusion, though, shines the need to puncture Zuckerberg’s bubble.
Chinese social network loses friends in new way 14 May 2018 Some Renren investors are unhappy about a deal to sell assets to a firm co-controlled by the CEO. The rationale for its low valuation of a stake in online lender SoFi looks thin. An antisocial share structure and Cayman Islands base, however, mean it's probably a losing battle.