THEY DIDN'T WANT TO TALK IN THAT
CONTEXT.
>> IT'S THEIR LOSS.
>> MARIA: THANK YOU.
LET ME ASK YOU THIS.
FACEBOOK HAS BEEN ROPED INTO THE
SPECIAL COUNCIL INVESTIGATION,
ROBERT MUELLER'S PROBE.
INVESTIGATORS ARE LOOKING INTO
THE CONNECTION BETWEEN PRESIDENT
TRUMP'S 2016 CAMPAIGN AND THE
CAMBRIDGE ANALYTICA STORY.
ROGER, YOU EXPLAINED IT AND THE
DIFFERENCE.
ZUCKERBERG SHOULD HAND OVER THE
DATA NOT JUST FROM FACEBOOK BUT
ALSO FROM INSTAGRAM, RIGHT?
HE'S GOT A LOT OF DATA THAT IS
GOING TO BE ANALYZED BY THE
SPECIAL COUNCIL.
>> FACEBOOK'S PROBLEM IS WHEN
THEY DISCOVERED CAMBRIDGE
ANALYTICA HAD THE MATERIAL
INCORRECTLY, THEY SAID TO THEM
YOU HAVE TO DESTROY THE STUFF.
THEY DIDN'T VALIDATE IT HAD BEEN
DONE.
EMPLOYEES WORKING WITH CAMBRIDGE
ANALYTICA ON THE TRUMP CAMPAIGN,
WORKING WITH THE VERY STUFF THAT
WAS SUPPOSED TO HAVE BEEN
DESTROYED.
THAT'S WHERE THE PROBLEM IS WITH
THE SPECIAL PROSECUTOR, BECAUSE
FACEBOOK KNEW, THE MANAGEMENT
KNEW THAT THEY WERE WORKING WITH
ILL-GOTTEN DATA.
AND YOU'RE NOT ALLOWED TO DO
THAT.
THE PROBLEM WITH CAMBRIDGE
ANALYTICA IS THEY'RE NOT AN
AMERICAN COMPANY.
YOU'RE NOT -- AS A NON-AMERICAN
PERSON WITHOUT A GREEN CARD
YOU'RE NOT ALLOWED TO WORK ON A
POLITICAL CAMPAIGN.
>> MARIA: DID THEY JUST NOT WANT
TO DEAL WITH IT?
>> I THINK THEY DON'T THINK OF
THAT KIND OF STUFF.
THEY HAVE 2 BILLION MEMBERS MANY
I THINK THEIR VIEW IS WE'RE
GOING TO 4 BILLION MEMBERS AND
WE'RE NOT LETTING ANYTHING GET
IN THE WAY AND REGULATIONS, NOT
THEIR PROBLEM.
>> MARIA: IT LOOKS LIKE THE
REGULATORY ENVIRONMENT'S GOING
TO GET TOUGHER NOW.
>> IT'S A TRAGEDY.
WHEN YOU GROW BIG YOU'RE
SUPPOSED TO GROW UP.
AND I KNOW THESE PEOPLE.
THEY ARE BETTER THAN WHAT'S
GOING ON RIGHT NOW.
AND I WOULD JUST LOVE TO HAVE
THEM SIT DOWN, JUST GO GUYS, GET
THIS RIGHT.
>> MARIA: FROM A STOCK
PERSPECTIVE, WHAT ARE WE TALKING
ABOUT NOW?
10% DECLINE THIS WEEK?
>> THIS SCARES THE HECK OUT OF
ME.
THIS IS A BUSINESS BASED ON
TRUST AND HOW CAN YOU TRUST THEM
WITH THE WAY THEY'RE BEHAVING
RIGHT NOW?
I THINK USERS ARE ABSOLUTELY
WITHIN THEIR RIGHTS TO CHANGE
THEIR BEHAVIOR.
EVERYBODY NEEDS TO UNDERSTAND,
ANYTHING YOU PUT ONTO FACEBOOK
COULD DISAPPEAR.
IT COULD GO TO BAD PEOPLE.
THERE'S NO WAY TO GET IT BACK.
YOU HAVE TO BE SMART.
FACEBOOK WAS A PLACE WE ALL
TRUSTED.
I DON'T KNOW HOW WE GET BACK TO
THAT.
AS INVESTORS, THAT WORRIES ME.
I'M NOT WORRIED ABOUT TENSIONER.
I'M
PEM
PEOPLE WON'T TRUST THEM AS MUCH.
IT WILL BE TOUGH TO EARN THE
TRUST BACK.
THE FIRST TIME THEY CAME OUT TO
TALK, THEY BLEW IT.
>> MARIA: THE GROWTH STORY HAS
CHANGED.
PUTTING EARNINGS ASIDE.
>> THE STOCK STORY HAS CHANGED.
I STILL OWN THE STOCK.
I DON'T DO THE TRADES MYSELF.
I HAD SOMEBODY ELSE NOW MANAGE
IT BECAUSE I'M INVOLVED IN THIS
THING.
THEY SOLD SOME STOCK THIS WEEK
BECAUSE THEY WEPT THIS IS WENT T
BECAUSE THEY WEPT THIS IS WENT I
BECAUSE THEY WEPT THIS IS WENT S
BECAUSE THEY WEPT THIS IS WENT I
BECAUSE THEY WEPT THIS IS WENT S
TERRIBLE.
I'M GOING IT'S BEEN TERRIBLE FOR
AGES, WHY DID YOU PICK THIS
WEEK?
THEY SAID THIS IS THE WEEK THEY
LOST TRUST.
>> MARIA: IT HAS TO DO WITH THE
WAY THE LEADERSHIP BEHAVED, WHAT
THEY DID.
>> HOW MANY TIMES HAVE WE SEEN
THIS?
WE REMEMBER HOW JOHNSON &
JOHNSON HANDLED TYLENOL.
THAT GUY WENT IN AND POISONED A
FEW BOTTLES AND TYLENOL.
JOHNSON & JOHNSON SAID THESE ARE
OUR CUSTOMERS.
WE HAVE TO TAKE CARE OF THEM.
I LOOK AT FACEBOOK AND FACEBOOK,
THEIR CUSTOMERS ARE THE
ADVERTISERS.
THE USERS FOR FACEBOOK ARE THE
PRODUCT.
BUT THE TRUTH IS, THERE ARE
TIMES WHEN YOU HAVE TO TREAT THE
USER AS YOUR CUSTOMERS, AS YOUR
PARTNERS, AS FAMILY.
AND THEY BLEW THAT.
THIS WAS A CHANCE THEY COULD
HAVE BEEN A HERO IN THIS MOVIE.
AND I DON'T KNOW WHAT THEY DO
NOW.
I THINK THIS IS REALLY
DIFFICULT.
I HOPE THEY GET IT TOGETHER.
>> MARIA: YOU KNOW THAT
ZUCKERBERG IS GOING TO GO
TESTIFY.
WHAT KIND OF --
>> I HOPE HE GOES TO TESTIFY.
>> MARIA: I HOPE SO TO.
WHEN HE WAS TALKING IN THE TV
INTERVIEW, HE SAID MAYBE IF I'M
THE BEST GUY, IF NOT, NOT.
HE WASN'T REALLY COMMITTING TO
IT.
>> IT WAS TERRIBLE.
HE SAID SOMETHING LIKE I DON'T
UNDERSTAND HOW ANYBODY WHO WOULD
SIGN A CERTIFICATION THAT THEY
DESTROYED THE DATA WOULDN'T DO
THAT.
I'M GOING DUDE, YOU SIGNED A
CONSENT DECREE WITH THE FTC.
AS FAR AS I CAN TELL, YOU DIDN'T
ACTUALLY HAVE ANY COMPLIANCE FOR
IT.
YOU'VE GOT TO BE KIDDING ME.
HE SAYS I DON'T THINK -- WE
THINK WE DON'T AFFECT ELECTIONS.
I'M GOING GIVE ME A BREAK.
YOU PUT OUT WHITE PAPERS TALKING
ABOUT HOW YOU INFLUENCE
ELECTIONS.
I LOOK AT THIS AND I GO GUYS,
YOU NEED A NEW P.R. FIRM.
>> MARIA: ON A DAY THAT WE JUST
CAME OFF A 700 POINT SELLOFF IN
THE DOW YESTERDAY, FACEBOOK'S
LOOKING DOWN AGAIN, WE'RE
EXPECTING PERHAPS MORE
REGULATION IN THE ENTIRE SECTOR,
WHAT DO YOU WANT TO DO HERE AS
AN INVESTOR?
IS THIS JUST A FACEBOOK STORY
FOR YOU OR DO YOU WANT TO STEP
AWAY ON A WHOLE BUNCH OF TECH
CONDITIONS IN THE FACE OF ALL
THIS?
>> I DON'T THINK IT'S JUST TECH
COMPANIES.
I THINK TECH REMAINS A LEADER IN
OUR ECONOMY.
I WORRY THAT WE'RE ALMOST 10
YEARS INTO A BULL MARKET, MARIA
AND WHEN I WAS LAST ON HERE WE
TALKED ABOUT THIS ISSUE THAT WE
WERE COMING TOWARDS THE END OF A
BULL MARKET CYCLE AND ONCE YOU
GET INTO A SITUATION OF TARIFFS
AND TRADE WARS, YOU HAVE TO LOOK
AT LOWER GROWTH AND HIGHER
INFLATION.
THAT'S NOT -- I DON'T KNOW
WHETHER THE MARKET'S GOING TO
BOUNCE BACK FROM THIS IN THE
SHORT RUN.
WHEN YOU LOOK AT IT LONGER TERM,
THE OUTLOOK JUST ISN'T THAT
GOOD.
I MEAN, WE HAVEN'T HAD A SERIOUS
CORRECTION IN 10 YEARS.
IT COULD HAPPEN ANY TIME.
I CAN'T PREDICT WHETHER IT'S
THIS WEEK, THIS MONTH, WHENEVER.
BUT PERSONALLY DEFENSIVELY
POSTURED AND HAVE BEEN FOR
FRANKLY MORE THAN A YEAR BECAUSE
I WORRY THAT WE'RE GOING TO HAVE
HIGHER INFLATION AND LOWER
GROWTH.
AND YOU AND I HAVE BEEN AROUND
LONG ENOUGH TO REMEMBER TAKING
DISS
STSS
STAGFLATION IS LIKE.
>> MARIA: THIS ON THE WEEK THAT
THE FEDERAL RESERVE RAISES
INTEREST RATES FOR THE FIRST
TIME THIS YEAR.
>> SEEN THIS MOVIE BEFORE.