Facebook's Data Policies Are Like "Cigarette Labels"
Investors watched Wednesday as negative headlines and sentiment kicked down shares of some Silicon Valley heavyweights and wiped away billions of dollars in market cap.
Part of the drag came from continued fallout over Facebook’s data scandal.
“There is a reckoning coming about data transparency and the authorization that users give for their data” across the board, said Quartz’s David Yanofsky.
Overall, the NYSE’s FANG+ index, which is comprised of names such as Facebook, Amazon, Apple, Netflix and Google parent Alphabet, slipped more than 2 percent. Here’s a round-up of what’s going on:
1\. Facebook
The social media giant hasn’t been able to shake off the Cambridge Analytica news yet, with each day bringing new details to light that swipe at the company’s reputation.
On Wednesday, after days of intense pressure, the company announced a redesigned interface, making its privacy policies and terms of services more accessible and giving users some measure of control.
Although, as Damon Beres, Executive Editor at Mashable, pointed out, Facebook [“didn’t introduce any new privacy controls.”](https://cheddar.com/videos/will-facebooks-redesign-ease-concerns)
Up until now, the company has warned users about how their data may be used with the same level of opacity as cigarette companies, said Yanofsky.
“[Currently] when you click that button to give access to my profile, give access to my posts, it’s not always clear how much farther it goes and what that data will actually be used for.”
He goes on to say that, like other addictive products, even knowing how your information is used, may not be enough to kick the habit.
Facebook also reportedly hit pause on its latest product roll out. The company was scheduled to unveil its own Alexa-like smart speaker at its F8 developer conference in May, but is holding off because of the recent data furor.
All of that came on the back of news that CEO Mark Zuckerberg is preparing to testify before Congress next month.
Since the scandal broke less than two weeks ago, the company’s market cap has been slashed by nearly $100 billion.
2\. Amazon
Early Wednesday, reports emerged that President Trump is “obsessed” with Amazon and wants to go after the tech giant for impacting small businesses.
The president reportedly floated the idea of changing the e-commerce giant’s tax treatment or using anti-trust laws against it, according to Axios.
Even the hint of a clash with the White House was enough to worry investors. Amazon shares sank by more than 4 percent, at one point erasing $53 billion in market value from the company.
This turn of events raised the question of whether Amazon would reconsider putting its second headquarters in Washington DC, considered by many to be a front-runner for the highly-anticipated HQ2.
But Alayna Treene, Associate News Editor at Axios, doesn’t think Amazon’s relationship with Trump will impact its decision.
“I really don’t think that Amazon is going to let this hold them back,” [she told Cheddar](https://cheddar.com/videos/will-trumps-desire-to-regulate-amazon-affect-its-hq2-decision).
3\. Snap Inc.
Just as Facebook tussles with the question of third party applications and how much access they have to user data, Snapchat is testing a new feature, “Connected Apps,” which would allow users to weave more apps together in the ecosystem.
Concerns that might bring up more privacy issues weighed on that stock which was down more than 1.5 percent Wednesday.
For the full interview, [click here](https://cheddar.com/videos/facebook-data-scandal-whats-next).
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
Starbucks’ AI barista aims to speed service and improve experience. Nick Lichtenberg, Fortune Business Editor, explains its impact on workers and customers.
