Is it time to short Facebook? Trevor Noren's take on FB...

spunj

Administrator
Jan 24, 2019
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Twitter - Trevor Noren

"My thoughts on Facebook: The institutionalized failure to see and respond to the platform’s downsides may render Facebook the Digital Age’s Enron— a canonized example of how greed & corruption can fell even the mightiest."

“There’s no mental health support. The suicide rate is extremely high,” one of the directors of the documentary, “The Cleaners” told CBS News last May. The film is an investigative look at the life of Facebook moderators in the Philippines. Throughout his 2018 apology tour, Mark Zuckerberg regularly referenced the staff of moderators the company had hired as one of two key solutions — along with AI — to the platform’s content evils. What he failed to disclose is that the majority of that army is subcontractors employed in the developing world.
For as long as ten hours a day, viewing as many as 25,000 images or videos per day, these low-paid workers are buried in the world’s horrors — hate speech, child pornography, rape, murder, torture, beheadings, and on and on. They are not experts in the subject matter or region they police. They rely on “guidelines” provided by Facebook — “dozens of unorganised PowerPoint presentations and Excel spreadsheets with bureaucratic titles like ‘Western Balkans Hate Orgs and Figures’ and ‘Credible Violence: Implementation standards’,” as The New York Times reported last fall. The rules are not even written in the languages the moderators speak, so many rely on Google Translate. As a recent op-ed by John Naughton in The Guardian declares bluntly in its headline, “Facebook’s burnt-out moderators are proof that it is broken.”

As we noted in last week’s issue, 41 of the 53 analysts tracked by Bloomberg currently list Facebook as a buy, with “the average price target… $187, which implies upside of nearly 36%.” That optimism springs from a basic assumption: the company’s monopolistic data dominance means it can continue extracting more from advertisers even if controversy after controversy continues to sap its user growth. Given the depth and intractability of Facebook’s problems, this is at best short-sighted.

The platform’s content ecosystem is too poisoned for human or machine moderators to cleanse. Users are fleeing in droves, especially in the company’s most valuable markets. Ad buyers are already shifting dollars to competitors’ platforms. Governments are stepping up to dramatically hinder Facebook’s data-collection capabilities, with Germany just this week banning third-party data sharing. The company is under investigation by the FTC, the Justice Department, the SEC, the FBI, and several government agencies in Europe. It has been accused by the U.N. of playing a “determining role” in Myanmar’s genocide. An executive exodus is underway at the company. And we believe, sooner or later, Facebook’s board will see no option but to remove Sheryl Sandberg and Mark Zuckerberg.

Read more here. Doesn't sound good.
 

Sumo

New member
Jan 25, 2019
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I don't like facebook at all. I am tempted to short this thing. I am always a little bit afraid of the fb army though. They behave like the tsla fanboys.
 

Sumo

New member
Jan 25, 2019
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I just read: Facebook Stock Forecast: Why Facebook Is Now More Attractive Than Apple.

The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.

Facebook Stock Forecast
Summary
  • I dare say Facebook is now the better long-term investment than Apple. Apple’s trumpeting of privacy issues against Facebook reeks of hypocrisy.
  • My takeaway is that Apple just wants a share of the ad money that Facebook is mining from iPhone/iPad owners.
  • Alphabet paid billions of dollars so that its Google data-gathering search engine remains the default search engine on Apple’s mobile Safari browser.
  • Apple is just envious of Apple and Alphabet’s successes in mobile advertising.
  • Apple is the god dictator of the massive iOS platform and yet it failed to build a successful mobile advertising business.
I’m thinking of dumping 80% of my Apple (AAPL) holdings to buy more Facebook (FB) shares. Facebook’s audacious defiance of Apple’s hypocritical privacy policy on iOS apps convinced me that Zuckerberg would do anything to help his company retain its high double-digit growth in annual revenue.

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This is a prediction I'm going to watch. I totally disagree with the author.