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COMPANY'S THE NEXT SHOE TO FALL?
WHERE SHOULD INVESTORS BE
LOOKING OR COWERING THEMSELVES?
>> I THINK THE NEXT COMPANY THAT
SHOULD BE IN THE HOT SEAT ARE
GOING TO BE GOOGLE'S YouTUBE
DIVISION AND EITHER TWITTER OR
REDDIT.
LIZ: THAT WAS YESTERDAY ON THE
SHOW PREDICTING THAT BOTH
TWITTER AND GOOGLE'S YouTUBE
COULD BE THE NEXT MAJOR TECH
COMPANIES TO PERHAPS BE HAULED
IN FRONT OF CONGRESS IN THE WAKE
OF FACEBOOK'S DATA PRIVACY
SCANDAL.
SHARES OF BOTH COMPANIES MOVING
LOWER TODAY.
TWITTER NOT SO MUCH, BUT --
WELL, ACTUALLY, PERCENTAGE --
[LAUGHTER]
IT'S DOWN 1.75%.
ALPHABET FACEBOOK -- GOOGLE,
RATHER, ONE DOWN TWO-THIRDS OF A
PERCENT.
EVEN IN THE AFTERMATH OF
FACEBOOK'S DATA BREACH THAT
IMPACTED MILLIONS OF USERS, OUR
NEXT GUEST SAYS FACEBOOK USERS
AREN'T TAKING THE PRIVACY OF
THEIR DATA SERIOUSLY ENOUGH, AND
THAT MUST MEAN THAT FACEBOOK
INVESTORS AREN'T EITHER.
HE EVEN OFFERED A HOW-TO BOOK,
BEWARE THE PREDATOR: THE
AMERICANS' GUIDE TO PERSONAL
SECURITY.
JOINING US NOW, DAVE WHITE.
DAVE, BUSINESS NETWORK TALK
HERE.
FACEBOOK SAID, AND IT APPEARS
THEY'RE RIGHT, THIS WILL NOT
MEANINGFULLY IMPACT OUR STOCK OR
OUR NUMBERS OR OUR BUSINESS.
WHAT DO YOU SAY?
>> WELL, I SAY THAT CONSUMER
AWARENESS IS PRETTY LOW, THAT'S
ONE OF THE ISSUES THAT COMES
WITH IT.
THE TERMS AND AGREEMENTS, THE
TERMS AND CONDITIONS, THAT PART
OF IT PEOPLE JUST DON'T READ
WHAT THEY'RE SIGNING UP FOR.
SO FACEBOOK IS GETTING A PASS ON
THAT AT THIS POINT.
LIZ: WELL, WHAT'S INTERESTING
THOUGH IS THE REACTION TO
FACEBOOK -- AND WE WATCHED THE
STOCKING GO HIGHER AS MARK
ZUCKERBERG, THE CEO, ANSWERED
TEN HOURS, TWO DAYS OF
QUESTIONS.
TODAY IT'S UP SLIGHTLY, YOU
COULD CALL IT FLAT, BUT IT HAS
NOT TAKEN A MASSIVE DENT HERE.
WHEN YOU LOOK AT SAY, FOR
EXAMPLE, EQUIFAX, BACK ON
SEPTEMBER 7TH.
WHAT A DISASTER.
THEY HAVE EVERYBODY'S CREDIT
INFORMATION.
THEY HAD THEIR DATA COMPROMISED,
WHICH MEANS MILLIONS OF US HAD
OUR DATA COMPROMISED, AND THAT
STOCK DOWN NEARLY 19% SINCE THAT
DISASTER.
WHY ISN'T FACEBOOK, ASIDE FROM
THEY'RE JUST NOT AWARE, PEOPLE
JUST AREN'T AWARE, INVESTORS
SURE ARE.
WHY ISN'T FACEBOOK GETTING THE
SAME STOCK REACTION?
>> WELL, IT'S INTERESTING.
I THINK IT REALLY DOES COME BACK
TO THE CONSUMER.
THEY JUST DON'T KNOW WHAT
THEY'VE SIGNED UP FOR.
SO THEY CALL IT THE PRIVACY
PARADOX.
AND THAT'S WHERE PEOPLE
BASICALLY GIVE THEIR DATA AWAY.
THEY GIVE THEIR INFORMATION OUT
FREELY, BUT YET THEY EXPECT TO
HAVE PRIVACY.
AND IN THIS CASE, FACEBOOK HAS
GOT A PLATFORM THAT USERS ENJOY
USING FOR ALL THE GOOD REASONS
THAT MARK ZUCKERBERG SAID.
BUT AT THE SAME TIME, WHAT
EXACTLY ARE THEY GIVING?
IF YOU DOWNLOAD YOUR ARCHIVE,
YOU'LL SEE THAT THEY'VE GOT
QUITE A BIT OF DATA.
AND THERE WAS AN ARTICLE THAT
WAS IN "THE WALL STREET JOURNAL"
YESTERDAY, I BELIEVE, AND THE
WRITER WENT AHEAD AND SAID THAT
HE WAS REALLY ASTOUNDED --
LIZ: THEY HAD EVERYTHING.
>> IT HAD EVERYTHING.
HAD HIS EXES, ALL HIS PHONE
CONTACTS AND EVERYTHING.
SO THE POINT WITH MY PERSONAL
PEEVE IS WITH MESSENGER.
BECAUSE WHEN YOU PUT THAT ON
YOUR PHONE, THEY'VE GOT ACCESS
TO EVERYTHING YOU HAVE, YOUR
CONTACTS, YOUR E-MAILS, YOUR
PHOTOS.
LIZ: WELL, WHAT ABOUT WHAT RAJ
IS SAYING, THAT TWITTER AND
PERHAPS GOOGLE THROUGH YouTUBE
WILL BE THE NEXT TO BE DINGED BY
THIS?
>> SO I DON'T KNOW IF THEY'LL BE
DINGED BY IT, BUT WITH WHAT I
WOULD SAY IS, IS THAT THIS
PROBLEM IS MUCH BROADER THAN
FACEBOOK.
IT'S NOT A FACEBOOK-ONLY
PROBLEM.
YOU'RE LOOK AT BASICALLY DATA
THAT IS IS BEING COLLECTED BECAU
THAT IS IS BEING COLLECTED BECAE
WE ALLOW IT TO BE COLLECTED, AND
IT'S ACROSS BASICALLY EVERY
DEVICE THAT YOU WOULD USE.
SO PEOPLE JUST NEED TO BE AWARE
OF WHAT THEY'RE BUYING AND WHAT
THE RAMIFICATIONS ARE.
LIZ: OKAY.
WELL, DAVE, THAT'S WHAT YOU AND
YOUR BOOK, BEWARE THE PREDATOR,
DO.
THANK YOU VERY MUCH.
WE APPRECIATE THE WARNING.
>> WELL, WARD HOLSTON IS THE
BRAINS BEHIND IT.
I WILL TELL YOU I WAS HAPPY TO
BE PART OF THE PROJECT, AND WE
HOPE TO RAISE CONSUMER