Social Media

Twitter stock drama is just so immature

6 Feb 2020

The social network grew its user base over 20% in the fourth quarter sending shares up 15%. Yet revenue growth lagged. Considering the U.S. election, the Olympics and a possible pandemic, the Twittersphere could keep it going. But that’s not a grown-up business.

Facebook’s user black box is cause for concern

29 Jan 2020

Investors may be punishing Mark Zuckerberg’s $636 bln social network for rising costs and slower sales last quarter, even though it had flagged them and beat estimates. A bigger issue is that Facebook is lumping WhatsApp and Instagram into user metrics. It should aim for clarity.

Review: Trapped inside Big Tech’s “Uncanny Valley”

24 Jan 2020

Anna Wiener slams the industry’s godlike power in her new memoir about Silicon Valley’s recent gold rush. But the book mirrors what it mocks, largely reducing people to their social media posts or buying habits. It shows how impossible it is to escape the Bay Area’s long shadow.

Facebook cash a CEO blessing, investor curse

14 Jan 2020

Antitrust heat makes it hard for the $633 bln social network to use its $52 bln war chest on deals. A dividend creates a tax hit for its boss Mark Zuckerberg. Without warehouses to buy or software to bolster, buying shares is the best option. But that consolidates power.

Mark Zuckerberg can be his own activist investor

6 Jan 2020

Keeping shareholders happy isn’t necessarily compatible with cleaning up data abuses and toxic content. But Facebook’s CEO needn’t change his professed ideals. He could change the company’s legal form so it can better serve society – and put his supervoting power to good use.

Team Trump will steal Warren’s tech thunder

26 Dec 2019

The Democratic presidential candidate has made breaking up Silicon Valley giants like Facebook and Amazon a key part of her campaign. But the White House could use a recent antitrust probe to make the case first, and effectively mute much of Warren’s roar.

Jack Dorsey adds third job as anti-Facebook hero

20 Dec 2019

The awkward Twitter boss banned political ads and did more than Mark Zuckerberg’s social network to prevent the silencing of Hong Kong protesters. Dorsey, also CEO of Square, fared surprisingly well in D.C. hearings, too. His style will put heat on rivals as U.S. elections loom.

Viewsroom: Jack Dorsey’s heroic year ahead

19 Dec 2019

From banning political ads to developing cryptocurrency plans, the CEO of Twitter and Square has been politically more astute than rivals like Facebook. That sets him up for a good 2020. Also: the different ways that shareholders, the Fed and M&A bankers will tackle climate risk.

Facebook should keep the confessions coming

22 Nov 2019

The $570 bln social network has been unveiling a steady stream of data sins. The belated proactivity is welcome. Rising compliance costs may dent profitability but if Mark Zuckerberg can keep his ad machine going, an improved reputation will pay off financially.

Slack would be better off as part of a team

19 Nov 2019

Shares of the work-messaging service are down 45% since its June IPO. For all Slack’s charms, Microsoft’s alternative has nearly double the users, and is untroubled by the need to raise capital or turn a profit. Slack’s best course is to find a rich benefactor, like Salesforce.

Tech cartel would be handy for U.S. housing

19 Nov 2019

Apple, Facebook and Google have pledged a total of $4.5 bln to build homes in the San Francisco area. California needs at least 200 times that amount. Silicon Valley firms get criticized for being too big, but this is one area where they could throw their weight around more.

TikTok has escape route that Huawei lacks

18 Nov 2019

The Chinese-owned video app and its telecom compatriot are both under fire from U.S. lawmakers who fear political meddling. TikTok may have fewer allies to lobby on its behalf, but owner ByteDance could sell or spin its subsidiary off. Huawei, though, is in a long-term trap.

YouTube spinoff would be a must-watch

15 Nov 2019

The video service is stifled under parent Alphabet, which is valued more like Twitter than faster-growing Netflix. Sharing a stable with search engine Google hurts both in dealing with separate regulatory probes. And Alphabet’s siloed setup means it’s part way to a split already.

U.S. crackdown on TikTok gets help from Beijing

6 Nov 2019

A new Chinese cybersecurity law will give the government unfettered access to data that companies collect. It gives American lawmakers more excuses to probe the popular ByteDance-owned video app. The pressure could also squeeze the likes of Apple to limit their mainland exposure.

Holding: Watchdogs may deserve two bites at deals

31 Oct 2019

Unwinding Facebook’s Instagram purchase or other previously cleared mergers seems unfair – and costly. Yet recent research shows many tie-ups have caused unforeseen harm. Allowing regulators limited do-overs would pass legal muster and could help consumers and investors alike.

Apple needs CEO charm more than Facebook

30 Oct 2019

Tim Cook has Washington and even Beijing on side, while Mark Zuckerberg can barely speak without annoying someone in power – and Facebook is blocked in China. Yet since D.C. pressure ratcheted up a year ago, Zuckerberg’s stock has performed better. Diplomacy only goes so far.

Twitter’s advertising model gets ratioed

24 Oct 2019

The social network’s shares crashed nearly 20% after it revealed unexpectedly slow summer sales and a slew of issues of its own making such as bugs that hampered targeting ads and sharing data. Fall may be better for ads, but it’s fair to question Twitter’s ability to fix itself.

Microsoft acts the grown-up on tech rules

23 Oct 2019

Satya Nadella’s firm has built a constructive reputation in D.C. and Brussels, unlike Facebook, Google and others. It helps that it lacks a social network. Microsoft has also learned from past watchdog tussles. Less mature peers could do worse than copy its understated approach.

The clock is ticking on TikTok’s U.S. business

21 Oct 2019

A senator wants parents to delete the popular video app owned by China’s ByteDance. Even Facebook is taking potshots. TikTok, meanwhile, is building lobbying strength in Washington. But the mood in D.C. is ripe for curbs on any Chinese upstart with global ambitions.

Facebook would be wise to just give up on politics

15 Oct 2019

Over the past 90 days, political ads brought in less than 1% of forecast Q3 sales. But after presidential hopeful Elizabeth Warren showed up Facebook’s patchy vetting, they continue to garner way more in the way of negative vibes. Mark Zuckerberg can afford to exit the category.