MARIA: WELCOME BACK.
BOMB SHELL CLAIMS AGAINST
TWITTER THIS WEEK.
WHISTLE BLOWER PETER IS SET TO
TESTIFY BEFORE THE NET JUDICIARY
COMMITTEE NEXT MONTH AFTER HE
SAID MASSIVE SECURITY VIOLATIONS
ARE HAPPENING AT TWITTER.
THE FORMER EXECUTIVE SAYS
TWITTER IS JEOPARDIZING NATIONAL
SECURITY AND MISLEADING
INVESTORS.
TWITTER CEO CALLING THE CLAIMS
"FOUNDATIONALLY, TECHNICALLY,
AND HISTORICALLY INACCURATE".
I’M JOINED BY CYBERSECURITY
EXPERT LEE LISA AND LOU.
LISA, I WANT TO KICK OFF WITH
YOU, WE DON’T HAVE THE SPECIFIC
DETAILS IN TERMS OF WHERE THE
NATIONAL SECURITY FLAWS ARE, BUT
WHAT IS THE VULNERABILITY OF A
COMPANY LIKE TWITTER IN TERMS OF
ITS IMPACT ON NATIONAL SECURITY?
>> GREAT TO SEE YOU, MARIA.
IF WE CONTEXT CONTEXTUALIZE THIS
BLOWER REPORT AND IT’S FLAT
CONFIGURATION SOMEONE HIGHLY
CLASSIFIED IN THE COMMUNITY AND
IN THE COMMUNITY FOR DECADES AND
WITH TWITTER FOR YEARS YEARS AND
CONTEXTUALIZE TWITTER ITSELF AND
PLATFORMS WHERE MANY PEOPLE GET
THEIR DAILY INFORMATION AND
CHECK FACTS AND THINGS LIKE
THAT, THIS IS PROBLEMATIC
BECAUSE WE SEE MAJOR VIOLATIONS
OF BEST PRACTICES IN
CYBERSECURITY AND LACK OF
ENCRYPTION.
WE SEE THE PRINCIPLE OF LEAST
PRIVILEGE BEING VIOLATED THAT
LOOKS LIKE HE’S ALLEGING HALF OF
TWITTER’S EMPLOYEES HAVE ACCESS
TO DETAILED INFORMATION ABOUT
USERS, INCLUDING NATIONAL FIGURE
HEADS, CELEBRITIES, AND WE SAW
PROBLEMS WITH TWITTER’S
OPERATIONS IN THE PAST JUST IN
2020 WHERE A FEW TEENAGERS
GAINED ACCESS TO HIGH-PROFILE
TWITTER ACCOUNTS.
THESE ALLEGATIONS IN THE REPORT
ARE EXPLOSIVE AND SIGNIFICANTLY
AGAINST CYBERSECURITY BEST
PRACTICES.
MARIA: I THINK YOU LAID IT OUT
WELL, ESPECIALLY SINCE, LOU, WE
KNOW THIS IS NOT EXACTLY AN
INDEPENDENT GROUP.
THEY ARE AGAINST REPUBLICANS.
THEY ARE AGAINST CONSERVATIVES.
THEY CONTINUE TO SENSOR THEM OFF
OF THE PLATFORM, AND THEY
CENSORED REAL INFORMATION RIGHT
BEFORE THE 2020 ELECTION IN THE
FORM OF HUNTER BIDEN’S LAPTOP.
WHAT DOES THIS MEAN FOR THE
COMPANY’S PROSPECTS?
AND I GUESS I SHOULD ALSO POINT
OUT THIS IS ANOTHER LAYER ON TOP
OF THE ELON MUSK FIGHT WHERE
ELON MUSK IS SAYING YOU’RE NOT
BEING HONEST ABOUT THE NUMBER OF
FAKE ACCOUNTS ON THE PLATFORM.
GIVE US YOUR STANDPOINT FROM AN
INVESTMENT STANDPOINT.
>> YEAH, THERE’S SO MANY RISKS
TO UNPACK I WOULD AVOID IT.
TWITTER WAS AN INVESTMENT TO BUY
THE RUMOR OF MUSK TAKING THEM
OVER AND SELL THAT NEWS.
THAT HIT ON A THURSDAY AND
FRIDAY AND HE SHOULD HAVE SOLD
ON MONDAY WHEN IT CAME OUT AND
THIS IS NEWS TO TWITTER ABOUT
THE CYBERSECURITY AND PRIVACY
RISK, BUT NOT NEWS TO THE SOCIAL
MEDIA SPACE.
FACEBOOK HAS BEEN JUST A
PERENNIAL OFFENDER OF PRIVACY
LAWS AND JUST UNDERINVESTMENT
AND CYBERSECURITY PROTECTIONS SO
IT SHOULDN’T BE SHOCKING TO
INVESTORS.
IT’S A REAL RISK THAT PERVADES
ANY OF THE DIGITAL ECONOMY NAMES
AND YOU HAVE TO AVOID TWITTER.
MUSK IS RIGHT.
IF YOU LOOK, THERE’S A
TREMENDOUS AMOUNT OF FAKE
ACCOUNTS AND EVEN IF WE LOOK AT
FACEBOOK AS A PROXY.
LAST QUARTER THEY HAD TO FIGHT
OFF 1.6 BILLION FAKE ACCOUNTS AC
AND DELETE AND REMOVE FROM THE
SYSTEM.
ARGUING THAT 50 TO 60, 70+
PERCENT OF TWITTER USERS COULD
BE FAKE IS NOT UNREASONABLE.
AND SOUNDS BOMBAST ICK IN THE
HEADLINES BUT AS AN INVESTOR,
YOU HAVE TO TAKE THAT VERY
SERIOUSLY THAT THE MAJORITY OF
THE 290 MILLION+ USERS OR SO
JUST UNDER 300 MILLION MIGHT NOT
BE REAL, ENGAGEMENT IS LOW FROM
AN INVESTMENT STANDPOINT AND
SOCIAL MEDIA IS A SATURATED
MARKETPLACE AND TOUGH TO BE
COMPETITIVE AND GOING INTO A
RECESSION AND THESE RELY ON
ADVERTISING.
I CAN’T THINK OF ONE POSITIVE,
HONESTLY.
ELON MUSK WOULD BE THE ONLY
POSITIVE AND I’D WAIT FOR HIM TO
TAKE OVER TWITTER AT A LOWER
PRICE BEFORE I’D CONSIDER COMING
IN AS AN INVESTOR.
MARIA: SO YOU THINK THAT’S WHERE
THIS IS GOING, ELON MUSK STILL
ACQUIRES THE COMPANY BUT AT A
LOWER PRICE THEN, LOU?
>> I THINK THAT’S HAPPENING.
LOOK, THEY GOT CLOSE ENOUGH TO A
DEAL AND AGREEMENT THAT THE
EXECUTIVE RANKS GOT GUTTED
INSIDE TWITTER SO TWITTER HAS
TO, THEY REALLY DON’T HAVE MUCH
OF A CHOICE TO GO IT ALONE
ANYMORE.
THEY HAVE TO COME TO TERMS WITH
A LOWER PRICE AND HAVE TO BE
MORE FORTHRIGHT WHERE THEIR
DISCLOSURES AND TRANSPARENCIES
AND ELON MUSK IS A PRIVATE
COMPANY.
EVEN JACK DORSEY SAID IT,
TWITTER CAN RUN MORE EFFECTIVELY
AS A PRIVATE COMPANY AND YOU CAN
CORRECT THE ISSUES ON
CYBERSECURITY PRIVACY, TRY AND
REINVIGORATE GROWTH WITH SOMEONE
AT THE HELM THAT’S NOT TO BIASED
IN TERMS OF SEPARATING THE
AUDIENCE AND CENSORING CONTENT.
MARIA: AND THE BIAS IS PROBABLY
ONE OF THE BIGGEST STORIES HERE,
BECAUSE POLITICS ARE ALL WRAPPED
UP IN A SITUATION THAT MAKES THE
COMPANY VULNERABLE AND USERS
VULNERABLE BECAUSE OF ALL THE
DATA THAT POLITICAL HACKS HAVE
THEIR HANDS ON.
>> IT’S EXTREMELY TROUBLING.
IN ADDITION TO THE RELEASE OF
THIS, WE ONLY SEE THE REDACTED
REPORT AND LACK OF ENCRYPTION
AND PRINCIPLE AND NOT BEING ABLE
TO TOUCH DIFFERENT DATA POINTS
AND NOT ENOUGH TRAINING BEING
DONE.
WE STILL HAVE DESPITE HOW MANY
BOTS OR SPAM PERSONS MAY BE ON
THE SITE ITSELF, WE STILL HAVE
HIGH-PROFILE USERS THAT ARE
LEAVING PLENTY OF THEIR PERSONAL
INFORMATION ON THE PLATFORM,
THEY HAVE DMS, THEY HAVE THE
ABILITY TO INTERACT.
IF WE SEE TEEN ANYONERS GETTING
INTO -- TEENAGERS GETTING INTO
IT LIKE WE DID IN 2020, WHO
KNOWS WHAT COULD HAPPEN IF PUTIN
DID OR ANYBODY ELSE AND WE HAVE
QUESTIONS OF WHAT’S IN THE INNER
WORKINGS AND WE NEED A BETTER
AUDIT AND UNDERSTAND THE INNER
WORKINGS AND HAVE A PROBLEM WITH
30-YEAR-OLD LAWS HIGHLIGHTING
HOW THESE PLATFORMS ARE ABLE TO
FUNCTION; RIGHT, AND THAT’S A
PROBLEM AS WE’VE SAID WITH
FACEBOOK, WITH TWITTER, WITH
GOOGLE.
ALL OF THESE PLATFORMS WHO
REALLY NEED TO TAKE A CLOSER
LOOK AT HOW THEY OPERATE BECAUSE
THEY ARE PRIVATE.
MARIA: AND WHO’S MAKING THE
RULES?
THIS WEEK FACEBOOK TOLD US IT
WAS THE FBI THAT DIRECTED THE
COMPANY TO SENSOR THE HUNTER
BIDEN LAPTOP STORY AND THEY’RE
THE ONES WHO TOLD META THAT IT
WAS RUSSIAN DISINFORMATION SO
WHO’S REALLY RUNNING THE SHOW?
IS IT THIS ADMINISTRATION OR THE
COMPANIES?
LOU AND LEEZA, GREAT DISCUSSION