THIRD QUARTER OF THIS YEAR.
BRANDI ZADROZKY, GARRETT HAAKE
AND DOMINIC CHU JOIN US.
DOMINIC, WHEN A COMPANY GETS HORRIFIC "NEWSWEEK" AFTERNEW SS
HORRIFIC "NEWSWEEK" AFTERNEW SS
THE COMPANY LOSES IN EARNINGS,
BUT FACEBOOK INCREASED.
>> ITâ€™S NOT THAT THE MARKET
DOESNâ€™T CARE ABOUT THESE TYPES
OF STORIES, ITâ€™S THAT THEY
ALREADY HAVE CARED AND THEYâ€™RE
TRYING TO LOOK AHEAD TO WHATâ€™S
IN THE FUTURE FOR FACEBOOK.
FACEBOOK STOCK HAS BEEN
PUMMELLED OVER THE LAST COUPLE
OF MONTHS.
ABOUT 150 BILLION WORTH OF
MARKET LOSSES WAS IN
ANTICIPATION OF HOW FACEBOOKâ€™S
BUSINESS MODEL WOULD BE IMPACTED
BY, AMONG OTHER THINGS, FIRST OF
ALL APPLEâ€™S DECISION TO LET
CUSTOMERS DECIDE IF THEY WANT
THEIR DATA TRACKED ACROSS
DIFFERENT APPS THAT IS USED
TOWARDS TARGET MARKETING FOR
THEM FOR SOCIAL MEDIA COMPANIES.
THESE WHISTLE-BLOWER ALLEGATIONS
MADE BY FRANCES HAUGEN AND THE
FACEBOOK PAPERS, THEY MOST
CERTAINLY HAD A MARKET IMPACT ON
FACEBOOK, BUT MARKET WATCHERS
ARE FOCUSED ON WHAT FACEBOOK
WILL DO TO ADAPT ITS BUSINESS
MODEL TO MORE REGULATORY
SCRUTINY OVER WHAT THEY SHOULD
AND SHOULDNâ€™T BE ALLOWED TO DO
AND HOW THEY CONTINUE TO MAKE
MONEY.
9$9 BILLION THE PAST QUARTER.
THATâ€™S GOING TO BE THE BIG
HANGOVER FOR INVESTORS TO GET
OVER.
THE REASON THE STOCK COULD GO
HIGHER ON DAYS LIKE THIS IS
BECAUSE FACEBOOK AND OTHER TECH
COMPANIES HAVE FACED GOVERNMENT
CRACKDOWNS LIKE THIS IN THE PAST
AND EMERGED BIGGER AND EVEN MORE
PROFITABLE, SO INVESTORS ARE
TRYING TO HANDICAP THOSE TYPES
OF ODDS.
>> YEAH.
BECAUSE AT THE END OF THE DAY,
THE GOVERNMENT DOESNâ€™T DO
ANYTHING.
THEYâ€™RE LOOKING BACKWARDS SAYING
9$9 BILLION, ADVERTISERS DIDNâ€™T
GO ANYWHERE.
TO DOMâ€™S POINT, THE MARKET PAYS
ATTENTION TO SEE WHAT THE
REGULATORY ENVIRONMENT WILL BE
LIKE.
THE MARKET IS SAYING AINâ€™T
NOTHING GOING TO HAPPEN.
ANY REASON TO BELIEVE CONGRESS
WILL DO ANYTHING BESIDES SCREAM
AND YELL?
>> NOT ANY TIME SOON.
CONGRESSIONAL LAWMAKERS ARE
UNITED IN THEIR FRUSTRATION
ABOUT THE BIG TECH COMPANIES, IN
PARTICULAR THE WAY FACEBOOK
HANDLED ITSELF AND THE WAY ITâ€™S
BECOME IN MANY CASES A MONOPOLY.
THERE ARE LAWMAKERS WHO WANT TO
TAKE ON PRIVACY CONCERNS.
ONES WHO WANT TO TAKE ON
QUESTIONS OF PARENTAL CONTROLS.
ONES WHO WANT TO LOOK AT THE
ANTI-TRUST ELEMENTS OF THIS, SOM
FOLKS SEE THIS AS CENSORSHIP OR
GOING AFTER A SUCCESSFUL
AMERICAN COMPANY.
I THINK WEâ€™RE IN AN
INVESTIGATIVE AND FACT FINDING
PHASE IN CONGRESS.
MEANINGFUL REGULATION SEES A
LONG WAY OFF.
>> RANDI, ZUCKERBERG SAYS YOUNG
PEOPLE WILL BECOME THEIR NEW
NORTH STAR.
YOUR REPORTING SAYS OTHERWISE.
ITâ€™S OLDER USERS THAT ARE ON
THIS PLATFORM 24/7 AND THEYâ€™RE
THE ONES GETTING RADICALIZED.
>> YEAH. FACEBOOK IS GENERALLY THOUGHT OF
FACEBOOK IS GENERALLY THOUGHT OF
AS A PLACE WHERE, YOU KNOW, MAG
GAMAGA
FOLKS HANG OUT AND LOOK AT
CONTENT ON THEIR SITE.
THAT HAS BEEN A SORE SPOT FOR
FACEBOOK FOR THE LAST COUPLE OF
YEARS.
OUR REPORTING ON THE LEAKS FROM
FRANCES HAUGEN SHOWS A LOT OF
INFORMATION ON THAT.
ONE REPORT FROM MARCH ANALYZED
USERS WHO SHARED MISINFORMATION
FOUND THE OLDER THEY WERE, THE
MORE MISINFORMATION THEY SHARED
AND THAT TEENS WERE LEAST LIKELY
TO SHARE THAT INFORMATION.
FACEBOOK NEEDS THESE YOUNG
PEOPLE TO SURVIVE.
TEENAGE USE OF FACEBOOK IN THE
U.S. DECLINED BY 13% SINCE 2009.
ITâ€™S EXPECTED TO DROP ANOTHER
45%.
INSTAGRAM IS STILL POPULAR WITH
TEENS, BUT THESE INTERNAL
DOCUMENTS DID SHOW THAT YOUNG
PEOPLE ARE USING INSTAGRAM LESS.