Furious Friday

Is social media at a tipping point?

Today we’re looking at the market environment for Facebook, Google, Twitter, YouTube etc… their costs are going to far outpace what their revenues will be. Are they on their way up, or on their way down?

  • EU copyright laws affecting business models
  • Proposal for online forums to be banned
  • The difference between a ‘platform’ and a ‘publisher’ and how the law treats each of those definitions

Facebook is down 30% – and have advised that revenues would continue to slow down and its costs rise.

  1. Market cap almost half of Australia’s GDP (1.2tr USD)
  2. Loss equals the total GDP of Kuwait – some $120.3 billion in 2017 last year
  3. Indeed, over the last three months alone insiders – including Zuckerberg – have sold off $3.8 billion worth of stock in the company.
  4. Earnings per share (EPS) actually were a little ahead of forecast at $1.74 versus $1.72 that had been projected. And, revenues were only a tad shy at $13.23 billion compared to the $13.36 billion that had been expected.
  5. Trend analysis – middle of a very wide and falling trend in the short term with a further fall within the trend is signalled.
    1. Stock is expected to fall -18.53% during the next 3 months and, with 90% probability hold a price between $120.68 and $156.81

 

Three risks for social platforms – FB, Twitter, YouTube (owned by Google)

EU Copyright changes – Article 11 (link tax) & 13 (meme ban)

  1. Copyright directive – potential memes banned and platforms will need to pay publishers to link to their websites
  2. The European Parliament has voted in favour of a controversial new copyright directive that could force tech giants to do much more to stop the spread of copyrighted material on their platforms.
    1. designed to update existing copyright laws for the internet age
  3. Directive on Copyright places more responsibility on websites such as YouTube, Facebook and Twitter to make sure that copyrighted materially isn’t being shared on their platforms.
    1. Until now, the onus has mostly been on the copyright holders to notify the platforms
  4. The article intends to get news aggregator sites, such as Google News, to pay publishers for using snippets of their articles on their platforms.
    1. Legislation: “may obtain fair and proportionate remuneration for the digital use of their press publications by information society service providers”

 

Nobody knows how these will work – The EU politicians voting on this haven’t even read it. They have their assistants read it and they tell them how to vote.

  1. The Directive does contain an exemption for “legitimate private and non-commercial use of press publications by individual users,”
    1. this is open to interpretation – someone with a huge following on social media, who posts adverts to that audience, a “private and non-commercial” entity
  2. Article 12a might stop anyone who isn’t the official organiser of a sports match from posting any videos or photos
    1. could put a stop to viral sports GIFs and might even stop people who attended matches from posting photos to social media
    2. all of this depends on how the directive is interpreted by member states when they make it into law

 

UK – Online Hate Bill

  1. Want to ban private chats and forums on FB and other social media sites
    1. All that it will do is make hate filled groups go underground and punish those who are part of funny cat meme groups
  2. Irony is that there is no public forum for their policies
    1. They are allowed to meet in private and make decisions that affect our lives

 

Platform vs Publisher

  1. Platforms are not responsible for content uploaded
    1. As Facebook does control and edit content, they run the risk of losing platform status – and can be sued for content
  2. Publishers are liable

What is Luck? And how can we be manipulated through information, destroying the luck that we have

Welcome to Finance and Fury, the Furious Friday edition Last week: Being grateful for what we have, where Australia started and where we have come Today: Luck truly running out How it can be manipulated What is luck? Success or failure apparently brought by chance...

Furious Fridays: Furious Fridays: The Myth of trickle-down economics

Hey all, and Welcome to Finance and Fury, the Furious Friday edition. Have you ever heard of trickle-down economics? As you know, Friday episodes are here to clear up any misconceptions about economics and politics, and this is the biggest one when it comes to...

(Intro Series) What is financial independence?

Intro - Episode 1 What is Financial Independence? Welcome to the first part of this intro series to “Finance and Fury”. This series is brought to you by THINKING, as thinking is where this all started! Thinking about the easiest solutions to reaching financial...

Making money from shares; ratios, prices and what to look for

Episode 4 Making money from shares; ratios, prices and what to look for. Welcome to Finance & Fury! ...Is it better to actually make money or take money? Today we'll be discussing whether it's better to actually cooperate with companies or compete with them, and...

Say What Wednesdays: What’s an Education Fund and what are the tax benefits?

Say What Wednesdays What's an Education Fund and what are the tax benefits? Welcome to Say What Wednesday! This week the question comes from Sean, "You spoke about Education Funds in a recent episode, I’m just wondering if you can explain this further?" In this...

(Intro Series) Translating Finance

Intro - Episode 2 Translating Finance Welcome to Part 2 of this intro series to Finance & Fury. Today I wanted to start this episode off with getting you to imaging you’ve hit the lotto jackpot! Say for instance, you’ve got a guaranteed million dollars per annum...

Is there any proof that having more millionaires per person is better for the poor?

Welcome to Finance and Fury, The Say What Wednesday edition. Where every week we answer your questions. Question from Anton - In your recent podcast you mention countries that have more millionaires and billionaires have more gdp and a higher quality of life. I am...

Savvy Super: Tips on what you can do now with little effort or sacrifice to maximise your future

Episode 14 Savvy Super: Tips on what you can do now with little effort or sacrifice to maximise your future Have your Super set up – do yourself a favour! What will kill your retirement? Not looking at your super now. Would you trade 15 minutes now for $350,000 in 30...

Buying Property & Financial-Crash proofing your investments: how to get yourself into a position to survive any market correction

Episode 10 Buying Property & Financial-Crash proofing your investments: how to get yourself into a position to survive any market correction Financial-Crash proof your investments This is a flow on from the last Say What Wednesday, this episode talks about how to...

Say What Wednesday: The skinny on bonds and fixed interest

Welcome to Finance & Fury, the ‘Say What Wednesday’ edition. This week’s question comes from Gab; “Hi Louis, I was looking at different asset classes and how someone could get exposure to them (outside superannuation) and got stuck on "fixed income". If I...

Pin It on Pinterest

Share This