Twitter, Inc. (NYSE:TWTR) Fighting the Fake News Menace
In recent times, the issue of fake content has taken epic proportions. Major social media platforms like Facebook FB , Twitter TWTR , Weibo WB and Alphabet’s GOOGL Google have frequently come under fire for failing to combat the spread of fake news on their platforms
Social media giants are playing an expansive role in connecting the world, thanks to the improvement in Internet speed and connectivity as well as solid penetration of mobile devices. Per a survey by Pew Research Center last year, 20% of American adults learn about current affairs through social media and only 16% through newspapers.
However, according to the Reuters Institute Digital News Report 2018, the usage of social media and aggregators for news is declining, primarily due to trust and privacy issues, and fake news concerns. The report, which surveyed more than 74,000 people in 37 markets, stated that only 23% of respondents trust the news they find on social media.
Fake News Proliferates Faster
Fake news has been responsible for numerous sensitive situations, including terror propaganda and tampering with people’s sentiments about culture, religion and politics.
Per a BuzzFeed report, the top 50 fake news on Facebook was shared, liked and commented on for about 22 million times in 2018.
A study by Campaign for Accountability revealed that Google’s ad serving platforms generate large revenues by placing advertisements on websites responsible for fake news.
Another research by Massachusetts Institute of Technology found that a fake story spreads between 1,000 and 100,000 Twitter users six times quicker than it takes authentic news to reach 1,500 people.
Further, fake accounts reportedly comprise almost 40% of the total Chinese social media platforms, including Weibo.
How Social Media Companies are Responding
In 2018, Google realised the loopholes in its fake news detection system and launched Google News Initiative, a platform to strengthen quality journalism. The company also launched “Subscribe with Google” service to encourage subscriptions to media publishers.
Google was able to remove 2.3 billion “bad ads” that violated its ad policies. Reportedly, this Zacks Rank #3 (Hold) stock has removed ads from 1.5 million apps and about 28 million pages promoting fake stories. It also plans to spend $300 million to combat the epidemic.
Facebook, another Zacks Rank #3 stock, announced a $300 million investment into three-year partnerships with local newspapers. This will not only encourage the display of quality content but will also boost the dwindling demand for local newspapers.
Facebook is now planning to launch a dedicated news tab, in collaboration with publishers. High-quality news from trusted publishers is likely to lower the proliferation of fake news and boost its brand image among users.
Reportedly, in January 2019, the company removed 783 pages, groups and accounts from the Facebook and Instagram platforms, which were propagating agenda-based news from Iran.
The Iranian propaganda had also led Twitter to suspend 2,617 accounts before the U.S. Midterm elections last November, along with 418 and 764 suspicious accounts originating from Russia and Venezuela, respectively. Twitter has a Zacks Rank #3 at present.
Facebook and Twitter have been actively collaborating and working with lawmakers of the United States and other countries to deal with the issue.
China’s “Piyao” Fights Fake News
China has been fighting its own war against fake news by launching “Piyao” last year, which is a platform that identifies fake news across the Internet.
Apart from other social media sites, Piyao has an account on Weibo, helping the latter improve its content quality. Weibo also has its own official account where fake news from across the platform can be reported by users. Notably, it has a feature to tag misinformation since 2012, four years before Facebook took a similar initiative.
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 32.32.
The projected upper bound is: 37.04.
The projected lower bound is: 32.52.
The projected closing price is: 34.78.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 27 white candles and 22 black candles for a net of 5 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).
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 81.4586. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 9 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 69.52. 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 buy 69 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 139.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 7 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 buy 18 period(s) ago.
Rex Takasugi – TD Profile
TWITTER INC closed up 0.300 at 34.720. Volume was 52% below average (consolidating) and Bollinger Bands were 18% narrower than normal.
Open High Low Close Volume___
34.690 34.790 34.390 34.720 1,829,273
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 33.44 31.94 33.34
Volatility: 26 45 66
Volume: 2,708,726 3,421,219 4,352,450
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.
TWITTER INC is currently 4.1% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into TWTR.N (mildly bullish). Our trend forecasting oscillators are currently bullish on TWTR.N and have had this outlook for the last 13 periods.
Latest posts by HEFFX Australia (see all)
- Top 10 Spectacular Trips of a Lifetime - July 17, 2019
- eBay Inc. Reports Second Quarter Results - July 17, 2019
- United Security Bancshares reports 2nd quarter net income of $4.1 million - July 17, 2019