DAVID: SHARES OF FACEBOOK ARE
SOARING AFTER HOURS.
LOOK AT THIS, UP MORE THAN 8%
AFTER THAT SOCIAL MEDIA GIANT
POSTED RECORD PROFITS AFTER THE
BELL, AND DESPITE ALL THE
PRIVACY SCANDALS, INCLUDING ONE
JUST TODAY, THE DAILY, THE
QUARTERLY, THE MONTHLY ACTIVE
USERS ON AVERAGE WERE UP 9% IN
DECEMBER FROM LAST YEAR.
WE'RE JOINED NOW BY TECH EXPERT
BRETT LARSON FROM FOX NEWS
HEADLINES, 24/7.
BRETT, THE INCREDIBLE THING IS
THAT INVESTORS ARE JUST
SHRUGGING OFF ALL THESE PRIVACY
CONCERNS AND THE DAILY SCANDALS
RIGHT?
>> THEY DON'T SEEM TO BE
BOTHERED BY THIS ONE BIT AND IT
SEEMS AS THOUGH NEITHER ARE
FACEBOOK.
I'M SURPRISED AS MANY PARENTS AS
FACEBOOK SAYS GAVE PERMISSION
FOR THE YOUNGER -- YOU KNOW, THE
13 TO 15-YEAR-OLDS THAT NEED A
SIGNED PARENTAL CONSENT TO DO
THIS.
I'M SHOCKED THAT PARENTS ALLOWED
THAT TO HAPPEN.
DESPITE ALL THE NEWS FOR
FACEBOOK, INVESTORS LOVE IT.
THERE'S A GOOD REASON FOR THAT.
IF YOU WANT TO REACH A MASSIVE
AMOUNT OF EYEBALLS NOT JUST HERE
IN THE U.S. BUT ALL OVER THE
GLOBE, FACEBOOK IS THE PLATFORM
WHERE YOU GO.
>> BRAD, IT IS SCOTT FROM
CHICAGO WHERE IT IS REALLY WARM
TODAY.
GIVEN THAT, WE'VE BEEN LONG
ADMITTEDLY FROM SOME OF THE
EARLY DAYS UP TO THE RALLY LAST
YEAR ALL THE WAY DOWN THE
MOUNTAINSIDE HERE, DO YOU THINK
THAT GIVEN EVERYTHING YOU JUST
TALKED ABOUT, DO YOU THINK ALL
THAT BAD NEWS IS IN THE STOCK
FROM NOW ON?
>> I DON'T THINK IT'S GOING TO
BE IN THE STOCK.
IT REALLY DOESN'T SEEM LIKE ANY
OF THIS BAD NEWS EVER CATCHES UP
WITH THEM.
THEY'VE FALLEN INTO THIS TRAP SO
MANY TIMES BEFORE, AND IT'S
BECOME A PATTERN; RIGHT?
SOMETHING GOES WRONG -- THEY DO
WHATEVER THEY WANT, FOR STARTERS
BECAUSE THEY ARE GIGANTIC AND
THEY CAN DO THAT.
THEY PUT OUT WHATEVER KIND OF
APPS THEY WANT.
THEY INVADE YOUR PRIVACY ANYWAY
THEY WANT TO DO IT.
THEY ALLOW OTHER COMPANIES TO
INVADE YOUR PRIVACY ANY WAY THEY
WANT TO DO IT.
WHEN IT COMES OUT IN PUBLIC,
THEY STEP BACK AND SAY OH, MAN,
WE'RE SORRY, WE DIDN'T NEED TO
DO THAT.
NOBODY CARES.
PEOPLE SIGN ON TO FACEBOOK THE
NEXT MORNING.
THE STOCK GOES UP THE NEXT DAY.
THEY POST THEIR EARNINGS.
CLEARLY NO ONE CARES WHAT
FACEBOOK DOES.
IT IS TERRIFYING WHEN YOU REALLY
THINK ABOUT IT.
>> FROM A REGULATORY
PERSPECTIVE, THE NEW FRESHMAN
SENATOR FROM MISSOURI SAID THAT
HE WOULD ACTUALLY TEAM UP WITH
OUR FAVORITE PERSON ON THE SHOW,
ALEXANDRIA OCASIO CORTEZ FOR
LEGISLATION, SO THERE DOES SEEM
TO BE A DRUMBEAT IN BOTH PARTIES
TOWARDS REGULATION.
>> YES, THERE DOES SEEM TO BE
DISCUSSION OF REGULATION, BUT
WHEN YOU TALK ABOUT REGULATION,
AND THEN YOU GO TO THESE
CONGRESSIONAL HEARINGS, WHERE
YOU HAVE GOOGLE COMING IN, MARK
ZUCKERBERG COMING IN, NO
OFFENSE, THE CONGRESSMEN HAVE NO
IDEA WHAT THESE PEOPLE ARE
TALKING ABOUT.
DO YOU WANT THEM LEGISLATING AND
WRITING THE LEGISLATION?
WE DON'T.
>> I UNDERSTAND, BUT --
>> THE PROBLEM WITH THAT IS WHAT
WILL HAPPEN IS YOU WILL GET
LOBBYISTS FROM GOOGLE, FACEBOOK,
THEY SAY THIS ENSURES WE REMAIN
THE 800 POUND GORILLA.
THIS ENSURES THAT WE ARE TOO BIG
TO FAIL.
THIS IS THE LEGISLATION WE WILL
GET BEHIND.
OUR REPRESENTATIVES HAVE NO
IDEA --
>> IS FACEBOOK TOO BIG TO FAIL?
>> AT THIS POINT, FACEBOOK IS
TOO BIG TO FAIL.
GOOGLE SHUT OFF THE GOOGLE
CIRCLES -- I DON'T REMEMBER WHAT
IT WAS CALLED.
IT WAS SUCH A NONENTITY.
THERE IS NO COMPETITION RIGHT
NOW FOR FACEBOOK.
THERE IS NO OTHER PLATFORM THAT
HAS THAT MANY USERS.
FACEBOOK HAS BECOME THE NEW
CABLE COMPANY.
THEY HAVE BECOME THE CABLE
GIANT.
>> THERE'S NO COST ON THE RIGHT
OR THE LEFT FOR MAKING A BIG
TOUGH STAND AGAINST FACEBOOK
BECAUSE IT HAS NO FRIENDS
POLITICALLY.
>> RIGHT.
>> I THINK THIS IS THE NEW
CIGARETTE STOCK.
IT'S GOING TO PRODUCE TREMENDOUS
RETURNS FOR YEARS TO COME
BECAUSE IT MAKES A LOT OF MONEY,
AND THE SHARES ARE GOING TO BE
KEPT CHRONICALLY CHEAP BECAUSE
OF ALL THE HUBBUB ABOUT PRIVACY.
MEANWHILE PEOPLE ARE GOING TO
USE IT.
BY THE WAY, IT IS FREE, WE
SHOULD REPEAT.
THAT'S PART OF THE DEAL.
>> IT IS -- YOU'RE NOT THE
CUSTOMER.
YOU'RE THE THING THAT THEY ARE
SELLING.
YOU KNOW, EVERYBODY LOGS IN AND
THINKS THIS IS SO GREAT, IT IS
SO CONVENIENT.
IT IS FREE.
JUST LIKE G-MAIL IS FREE, JUST
LIKE ALL THIS OTHER STUFF IS
FREE.
>> I STILL THINK FACEBOOK IS
GOING TO BEAT ALL OF THIS.
NUMBER ONE, THERE WILL BE LEGAL
TECHNICALITIES ABOUT WHAT THEY
ARE DOING AND WHAT IT REALLY
CONSTITUTES AND HOW ARE YOU
GOING TO PROVE ANYTHING?
WHAT DOES THIS REALLY MEAN?
MY THEORY ON THIS, AND I'M NOT
THE TECH GUY HERE, YOU ARE, IS
THAT THEY ARE FULL OF ALGORITHMS
READY TO GO.
YOU ARE NOT GOING TO LIKE THAT
ONE, WE WILL PLUG THIS ONE.
IT IS EVEN WORSE.
BUT CONGRESS DOESN'T GET THE
TECHNICALITIES TO PROVE IT'S
WRONG.
>> SO FAR THIS HAS BEEN DEALT
WITH IS COMPANIES SAY WE'RE
GOING TO DO WHATEVER WE WANT
BECAUSE EVERY ONCE IN A WHILE WE
WILL GET FINED BECAUSE WHEN WE
HAVE 2 BILLION USERS WORLDWIDE,
WE CAN'T EXACTLY MONITOR EVERY
LITTLE TINY THING WE'RE SUPPOSED
TO DO SO EVERY ONCE IN A WHILE
WE WILL GET A 5 MILLION DOLLARS
FINE.
>> WHAT'S THE OPTION FOR
LEGISLATORS, YOU DO THAT AGAIN,
YOU WILL GET A BIGGER FINE?
>> THE NUCLEAR OPTION FOR
LEGISLATORS IS TO UNDERSTAND HOW
TECHNOLOGY WORKS, GET PEOPLE IN
WHO UNDERSTAND HOW TECHNOLOGY
WORKS AND SIT THOSE PEOPLE DOWN
AND HAVE THEM EXPLAIN IT TO YOU.
>> I'M GOING TO DEFEND THE
CONGRESS HERE BECAUSE THERE ARE
A LOT OF PEOPLE --
>> THERE ARE A LOT OF CONGRESS
PEOPLE.
>> IT'S NOT THE MEMBERS
ACTUALLY.
IT IS THE YOUNG STAFFERS WHO ARE
QUITE SMART.
THEY KNOW THIS IN DETAIL.
I AGREE WITH YOU HOLISTICALLY.
DAVID: THEY TRY TO TRAIN THEM,
BUT THEY STILL LOOK LIKE IDIOTS
WHEN THEY ARE TALKING TO
FACEBOOK AND THOSE GUYS.
>> THERE ARE BOTH GOOD AND BAD
WHEN IT COMES TO UNDERSTANDING
TECHNOLOGY.
WHEN YOU HAVE REPRESENTATIVES
ASKING GOOGLE WHY DOES MY iPHONE
HAVE AN AD ON IT?
HE CLEARLY DOESN'T UNDERSTAND.
DAVID: WHAT ABOUT INSTAGRAM?
>> JUST THIS WEEK FACEBOOK SAID
ALL THE MESSAGING PLATFORMS,
WHAT WE WILL DO ON THE BACK END,
ALL THAT TECHNOLOGY WILL BE THE
SAME.
WHETHER YOU ARE MESSAGING ON
FACEBOOK MESSENGER OR INSTAGRAM
OR WHAT'S APP, IT IS ALL GOING