Facebook, Inc. (NASDAQ:FB) co-founder Chris Hughes wrote in a New York Times op-ed that regulators must check CEO Mark Zuckerberg’s power
Facebook co-founder Chris Hughes issued a forceful call for regulators to break up the company he helped build in a New York Times op-ed published Thursday.
Hughes, who left Facebook to work for Barack Obama’s 2008 presidential campaign, said that from his own experience building and working inside the company, Facebook now has more power than a private sector entity is due. While emphasizing his belief that CEO Mark Zuckerberg has good intentions overall, he said the executive has far too much unchecked power, aided by his majority voting stake in the company.
“The most problematic aspect of Facebook’s power is Mark’s unilateral control over speech,” Hughes wrote. “There is no precedent for his ability to monitor, organize and even censor the conversations of two billion people.”
In a statement, Facebook’s VP of Global Affairs and Communications Nick Clegg said, “Facebook accepts that with success comes accountability. But you don’t enforce accountability by calling for the break up of a successful American company. Accountability of tech companies can only be achieved through the painstaking introduction of new rules for the internet. That is exactly what Mark Zuckerberg has called for. Indeed, he is meeting Government leaders this week to further that work.”
Hughes mentioned Zuckerberg’s response to the spread of violent messages in Myanmar through his company’s services. The United Nations blamed Facebook’s services for helping to spread hate speech amid a mounting crisis that led about 700,000 Rohingya Muslims to flee the country after what then-Secretary of State Rex Tillerson called an “ethnic cleansing.”
Hughes said in the article that he liquidated his Facebook shares in 2012 and no longer owns shares of any social media company.
Breaking up Facebook, or at least attempting to do so, would send a powerful message to the tech industry at large, Hughes said. He called for additional oversight of the industry through new systems like an agency “empowered by Congress to regulate tech companies.” The nature of tech companies has made them difficult to regulate since theory around antitrust law has previously centered around the question of whether consumers are being forced to pay inflated prices, which doesn’t really apply to a company like Facebook.
“Facebook is the perfect case on which to reverse course, precisely because Facebook makes its money from targeted advertising, meaning users do not pay to use the service,” Hughes said, adding that Google and Amazon may take such a case as a warning for their own businesses. “But it is not actually free, and it certainly isn’t harmless.”
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 178.15.
The projected upper bound is: 197.31.
The projected lower bound is: 181.02.
The projected closing price is: 189.17.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 25 white candles and 24 black candles for a net of 1 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 22.6100. This is not an overbought or oversold reading. The last signal was a sell 10 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 58.40. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 2 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -35. This is not a topping or bottoming area. The last signal was a sell 6 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 2 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed down -0.890 at 188.650. Volume was 32% below average (neutral) and Bollinger Bands were 9% wider than normal.
Open High Low Close Volume___
187.200 189.770 186.260 188.650 12,967,033
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 192.25 176.23 161.47
Volatility: 21 29 49
Volume: 16,471,322 17,619,468 24,385,544
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FACEBOOK INC A is currently 16.8% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of FB.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on FB.O and have had this outlook for the last 26 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.
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