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Tech Shares Look Like They Want To Collapse As Facebook Jitters Weigh

It looks like this might turn into something of a shitshow for Facebook over the next several days and that will of course weigh on tech and the broader market more generally if the losses worsen. 

It looks like this might turn into something of a shitshow for Facebook over the next several days and that will of course weigh on tech and the broader market more generally if the losses worsen.

FB is off more than 3% premarket:

FB

This is obviously tied to the Cambridge Analytica fiasco and now, government officials want some answers.

 

“Facebook faces more systemic problems after reports over the weekend associated with a data leak that exposed about 50 million user accounts, enhancing risks of regulatory controls for the social media platform and hampering advertising growth,” a note by Pivotal analyst Brian Wieser reads. “Facebook reports raise risk to the enhanced use of data in advertising, as well as opens up third-party measurement partners to increased restrictions, which may frustrate advertisers,” Wieser – who has a sell rating on the shares – adds.

“Changes to [Facebook’s] business model around advertising and news feeds/content could be in store over the next 12 to 18 months,” GBH’s Daniel Ives writes, in his own note.

Facebook has 43 buys, 3 holds, and 2 sells, with an average price target of $224. It’ll be interesting to see if that changes.

The UK’s Information Commissioner Elizabeth Denham isn’t fucking amused. She’s looking into what exactly went on here and in a web filing on Monday, she says that “a full understanding of the facts, data flows and data uses is imperative for my ongoing investigation,” and that includes “any new information, statements or evidence that have come to light in recent day.” She continues:

Our investigation into the use of personal data for political campaigns, includes the acquisition and use of Facebook data by SCL, Doctor Kogan and Cambridge Analytica. This is a complex and far reaching investigation for my office and any criminal or civil enforcement actions arising from it will be pursued vigorously.

Apparently, the Massachusetts Attorney General is launching an investigation.

Amy is furious:

And this just goes on, and on, and on.

Additionally, investors are focused on Apple’s apparent move to develop displays to replace Samsung screens – that’s obviously going to weigh on suppliers and as if this whole thing needed to be any more ominous for tech, this appears to be a problem in Europe:

  • MICRO FOCUS EXTENDS LOSS TO AS MUCH AS 58.5%, MOST ON RECORD

That’s a FTSE company but European tech shares are getting crushed broadly, down more than 2% on the day:

SX8P

Stateside, Nasdaq futures are leading the way lower ahead of the opening bell and it looks like you can expect tech to be the laggard all day long:

Nasdaq

**************

grin

 

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4 comments on “Tech Shares Look Like They Want To Collapse As Facebook Jitters Weigh

  1. Spunky McGregor

    I no longer have a Facebook page, and I encourage other people to delete their own. What does that company provide that is of any worth at all, other than people voluntarily opening their personal information to them?

  2. Big Stevie

    F-book is the original platform for online mental masturbation.

    10 years ago, when I had a FB page (for a few months), my email spam was going ballistic. I shut down my account and spam plummeted 95%. Weird coincidence.

    I miss getting messages from my ‘friends’ about the flavor of the month koolaid they just tried…

    • sun burnt

      After living in SF, I quickly grew to dislike FB & all the fake “my life is so damn perfect” posts. Really it’s a handy thing for having a peek at what people you know are up to. But there are so many privacy issues with that, that it’s hard to know whether the utility really outweighs the problems that can result. The reality is we do not live in a world where we want just about anyone to have a peek at what we have been up to.

  3. Close to a year ago and at the constant encouragement of my family members and friends, I joined FB — for less than one hour. Joined and deleted within 59 min. It was clear I did not like the exposure and really did not want to be a part of it – so for 58 minutes I succumbed to pressure – which also pissed me off – and that was the end of it. I still do not understand why people want to be a part of it!?! Some said because you get so many cute cartoons or stories and videos…well, you get all that on tons of places that don’t require you to join a group or give personal info…..

    c’mon people, you need to wise up and drop that membership!

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