Facebook, Cambridge Analytica get second notice on data breach

Posted April 26, 2018

GBH Insights analyst Daniel Ives in a research note Friday called this Facebook earnings report a "pivotal barometer" for investors.

The Centre on Wednesday sent notices to Facebook and Cambridge Analytica for the second time in connection with the scandal involving the misuse of data of people on the social media platform by the British data analytics company.

Global daily users hit 1.45 billion in the first quarter, an increase of 13 percent year over year. During the fourth quarter, Facebook experienced the first sequential decline in daily active users in the USA and Canada, causing concerns among investors. The daily active user dip in the region had dipped in the fourth quarter after Facebook made changes to the content it shows users. The news prompted USA lawmakers to call CEO Mark Zuckerberg to Washington for two days of testimony about why Facebook failed to adequately safeguard as many as 87 million users' privacy.

"Ads is a great business model that's aligned with our mission. this is something that we at Facebook are very proud of, and we think it's the right way to build a service", he said. "2018 is a year of important investments".

Facebook said monthly active users in the first quarter rose to 2.2 billion, up 13 percent from a year earlier and matching expectations, according to Thomson Reuters I/B/E/S. Its revenue this quarter was 49 percent higher than in the same period a year ago.

Others aren't convinced. Oliver Coen, a watch company based in London, gets more than 80 percent of its sales in the US, and puts half its advertising dollars into Facebook.

Facebook shares rose by almost 5% in after-hours trading after the earnings beat. Our board of directors originally authorized repurchases of up to $6.0 billion of our Class A common stock under the repurchase program, and this increase is incremental to the original authorization.

The move comes after the responses sent by Cambridge Analytica to the first notice were deemed "unsatisfactory, cryptic and evasive, the stated intention being to hide more than to reveal", the person said.

Did Mark Zuckerberg just beat Congress?

Amazon launches new Alexa experiences for kids and parents
Showing the importance of the Indian market, Amazon launched its smart speaker range in India in October a year ago . Moreover, the speaker delivers news and information including music from Amazon Prime Music, Saavn, and TuneIn.

Facebook's approach to privacy has come under intense scrutiny over the last few weeks, following the revelation that the personal data of millions of Americans was harvested from Facebook and improperly shared with the political consultancy Cambridge Analytica. Around 270,000 users directly downloaded the personality quiz app at the heart of the scandal, which collected data on each downloaded user and on all of his or her friends.

The company has till May 10, 2018 to answer additional queries.

Analysts agreed the Cambridge Analytica scandal did not heavily impact this earnings as it began in mid-March.

Facebook had admitted in its earlier response to the government that data of around 5.62 lakh people in India had been "potentially affected" by the incident.

In its reply to the notice issued by the IT ministry, Cambridge Analytica had earlier this month categorically.

Murphy considered leaving Facebook, but also doesn't see an advertising alternative that would have the same reach.

You thought Facebook was done doing deals with music publishers?

Meanwhile, Facebook is also dealing with new privacy regulations that take effect in Europe next month.