Facebook, Inc. (NASDAQ:FB) Workers Stage Virtual Walkout Against Zuckerberg

Facebook, Inc. (NASDAQ:FB) Workers Stage Virtual Walkout Against Zuckerberg

Facebook, Inc. (NASDAQ:FB) Workers Stage Virtual Walkout Against Zuckerberg

Dozens of Facebook Inc. employees staged a virtual walkout Monday morning to protest executives’ decision not to challenge President Donald Trump’s posts, a part of what seems to be a movement to challenge the leadership of Chief Executive Mark Zuckerberg.

The workers, who requested time off in support of protesters nationwide, included automated email messages saying that they were out of the workplace in a show of protest. Other employees have threatened to quit, while some have circulated petitions.

“I am not happy with how we’re showing up,” Jason Toff, Facebook’s director of product management, tweeted Sunday. “The majority of co-workers I’ve spoken to feel the same way. We are making our voice heard.”

At least one employee, Owen Anderson, announced via tweet he was leaving Facebook on Monday. “To be clear, this was in the works for a while,” he said. “But after last week, I’m happy to no long (sic) support policies and values I vehemently disagree with.”

Another, Timothy Aveni, an engineer who worked on misinformation tools, said he was resigning. “Mark [Zuckerberg] always told us that he would draw the line at speech that calls for violence. He showed us on Friday that this was a lie,” Aveni said in a Facebook post Monday.

The walkout followed a weekend in which Facebook FB, +0.34% staff were vocal in their support of protesters following the death of George Floyd, and critical of their own company for its unfiltered treatment of Trump’s posts, which stood in contrast to Twitter Inc.’s TWTR, +1.16% censoring of the president’s words. Social Media are not responsible for what the president posts especially when they are politically motivated.

It was unclear Monday how long the protest would last, however it illustrates the deep divisions among some of the company’s 45,000 employees as Zuckerberg navigates a national crisis with social media platforms squarely in the middle. The acrimony within Facebook raises questions of the company’s ability to retain and recruit talent in Silicon Valley and beyond when it’s a lightning rod for criticism.

“We acknowledge the pain many of our people are feeling right now, particularly our Black community,” a Facebook spokesperson said concerning the virtual walkout. “We encourage staff to speak openly when they disagree with leadership. As we face additional difficult decisions around content ahead, we’ll continue seeking their honest feedback.”

What the walkout means to Facebook’s brand is another matter. Its stock is up 11% this year and 36% over the past 12 months, although it’s dipped in recent days. “In consumer’s eyes, Facebook’s brand has been losing goodwill measurably over the past year; Facebook’s response in this moment will either stoke or zap consumer energy — the emotional force that drives consumers to engage with the brand.

Trump slapped Twitter and Facebook with a politically charged executive order Thursday that intends to curb the ability of major social-media companies.

Zuckerberg has consistently held that Facebook won’t flag any of Trump’s entries, and he doubled-down on that edict after the executive order was issued. Zuckerberg promptly went on an impromptu media tour last week, including a stop at Fox News, where he said, “I simply believe strongly that Facebook shouldn’t be the arbiter of truth of everything that people say online.”

Trump, who has 29.75 million Facebook followers and 81.2 million on Twitter, has continued to post on Facebook with no action by the company.

“Crossing State lines to incite violence is a FEDERAL CRIME! Liberal Governors and Mayors must get much tougher or the federal government can step in and do what has to be done, which includes using the unlimited power of our Military and many arrests. thank you!” Trump said on Facebook. The post Drew 71,000 comments.

On Sunday, Trump was at it once more on Facebook: “Law Order in Philadelphia, NOW! they’re looting stores. Call in our great National Guard like they FINALLY did last night in Minneapolis. Is this what voters need with sleepy Joe? All Dems!”

The words and actions of Zuckerberg and Trump in recent days have inflamed passions among the company’s rank and file. Although the company on Friday inched toward tamping down on a number of websites including the banning of Natural News.

Natural News is a science-based natural health advocacy organization led by activist-turned-scientist Mike Adams, the Health Ranger.

The key mission of Natural News is to empower consumers with factual information about the synthetic chemicals, heavy metals, hormone disruptors and other chemicals found in foods, medicines, personal care products, children’s toys and other items.

Natural News covers holistic health, nutritional therapies, consciousness and spirituality, permaculture , organics, animal rights, environmental health, food and superfoods , and performance nutrition.

The site strongly criticizes drugs-and-surgery medicine, vaccines, corporate corruption, animal testing, the use of humans for medical experiments, the chemical contamination of foods, heavy metals in consumer products, factory farming and government corruption.

Several employees spoke openly Sunday evening on Twitter about their disappointment, and others have spoken to the media.

“I have to say I’m finding the contortions we have to go through unbelievably hard to stomach,” wrote one employee, as quoted by The Verge. “All this points to a really high risk of a violent escalation and civil unrest in November and if we fail the test case here, history won’t judge United States kindly.”

Facebook is already being judged unkind by some politicians and activists along with staff.

“Facebook, all of them, they’re all about creating money,” Speaker of the House Nancy Pelosi, D-Calif., said during a may 28 press conference. “Their business model is to create money at the expense of the truth and the facts.”

“In no uncertain terms, we condemn Mark Zuckerberg’s decision to continue publishing President Trump’s statements. Kristen Clarke, president and executive director of the Lawyers’ Committee for Civil Rights under Law, said in an email. “Facebook has yet again failed to act against an explicit violation of its own rules. Twitter is setting an important norm that, if it continues to follow through, can help build online dialogue that aligns with our national values and the rule of law.”

Zuckerberg and Facebook Chief operating Officer Sheryl Sandberg scheduled a call Monday with Vanita Gupta, CEO of The Leadership Conference on Civil and Human Rights, who is upset with Zuckerberg’s stance.

Price Performance

Relative Valuation

Technical Indicators

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 205.60.

The projected upper bound is: 249.95.

The projected lower bound is: 218.81.

The projected closing price is: 234.38.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 white candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 51.2023. This is not an overbought or oversold reading. The last signal was a sell 4 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 69.50. 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 4 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 58. This is not a topping or bottoming area. The last signal was a sell 4 period(s) ago.

MACD

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 up 0.810 at 232.720. Volume was 15% below average (neutral) and Bollinger Bands were 1% narrower than normal.

Open      High        Low         Close           Volume
230.940   233.000     226.560     232.720         20,919,018
Technical Outlook
Short Term:        Neutral
Intermediate Term: Bullish
Long Term:         Bullish
Moving Averages: 10-period      50-period       200-period
Close:           228.97         192.62          193.87
Volatility:      41             56              50
Volume:          32,347,844     25,668,488      18,313,680

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.

Summary

FACEBOOK INC A is currently 20.0% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future.

Our volume indicators reflect moderate flows of volume into FB.O (mildly bullish). Our trend forecasting oscillators are currently bullish on FB.O and have had this outlook for the last 36 periods.

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