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Tag: Meta Platforms Inc

  • Meta stock jumps toward highest price in a year as Facebook parent predicts renewed revenue growth

    Meta stock jumps toward highest price in a year as Facebook parent predicts renewed revenue growth

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    Meta Platforms Inc.’s stock soared more than 10% higher in extended trading Wednesday after the social networking company’s profit declined less than expected in the first three months of 2023, and a revenue forecast pointed toward reinvigorated sales growth.

    Facebook’s parent company META racked up fiscal first-quarter net earnings of $5.71 billion, or $2.20 a share, compared with earnings of $2.72 a share in the year-ago quarter. Revenue gained less than 3% to $28.65 billion from $27.91 billion a year ago.

    Analysts…

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  • CNBC Daily Open: Big Tech surpasses expectations

    CNBC Daily Open: Big Tech surpasses expectations

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    A Google Cloud logo at the Hannover Messe industrial technology fair in Hanover, Germany, on Thursday, April 20, 2023.

    Krisztian Bocsi | Bloomberg | Getty Images

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    Bank stocks fell as First Republic reignited fears. Meanwhile, Alphabet and Microsoft beat earnings estimates, giving markets a chance to rally around tech.

    What you need to know today

    • Microsoft’s revenue increased 7% year over year to $52.86 billion, and its net income rose 9% to $18.3 billion for the quarter ended March 31. Both top and bottom line numbers beat expectations, causing shares to surge 8.45% in overnight trading.

    The bottom line

    Can optimism in tech save markets from resurgent bank fears?

    Investors must have felt an unwelcome sense of déjà vu. First Republic lost almost half its value in a single trading day, dragging down other regional banks. Western Alliance Bancorp lost 5.58%, Charles Schwab fell 3.93% and PacWest Bancorp sank 8.92% (though the Los Angeles-based bank managed to recoup its losses in overnight trading after reporting its earnings).

    Bigger banks weren’t spared, either: The broader SPDR S&P Bank ETF lost 3.68%. Across the Atlantic, UBS shares dropped even though the Swiss bank managed to increase assets in March, suggesting investors are still jumpy at any sign of weakness in banks.

    Losses in the financial sector weighed on major stock indexes. The Dow Jones Industrial Average slid 1.02%, the S&P 500 ended the day 1.58% lower and the Nasdaq Composite lost 1.98%.

    However, Wednesday could look like a very different trading day in the United States. Investors were pleased with how both Alphabet and Microsoft managed to beat estimates on profit and revenue. Shares of those tech giants popped in extended trading and are likely to post more dramatic surges later today. Given Alphabet’s and Microsoft’s immense market capitalization, broader markets stand to benefit from their rise as well.

    If Meta, which is due to report after the bell Wednesday, continues the streak of big tech surpassing Wall Street’s expectations, investors could be in for two good trading days for the Nasdaq, at the very least. That could be enough to banish any lingering sense of déjà vu surrounding banks.

    Subscribe here to get this report sent directly to your inbox each morning before markets open.

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  • CNBC Daily Open: Big Tech beats expectations

    CNBC Daily Open: Big Tech beats expectations

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    A sign reading “I’m Feeling Lucky” outside the Google Inc. regional headquarters in Paris, France, on Thursday, April 6, 2023.

    Nathan Laine | Bloomberg | Getty Images

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    Bank stocks fell as First Republic reignited fears. Meanwhile, Alphabet and Microsoft beat earnings estimates, giving markets a chance to rally around tech.

    What you need to know today

    • Microsoft’s revenue increased 7% year over year to $52.86 billion, and its net income rose 9% to $18.3 billion for the quarter ended March 31. Both top and bottom line numbers beat expectations, causing shares to surge 9% in overnight trading.
    • Turning to banks, UBS’ first-quarter profit fell 52% year on year to $1.03 billion, largely because of a $665 million provision it had to make for litigation related to mortgage-backed securities the bank sold almost 20 years ago. However, the bank’s wealth management unit attracted $28 billion amid the banking turmoil in March. Still, that news couldn’t stop shares from sliding 2.17%.
    • First Republic Bank fared worse. On Monday, the U.S. bank reported after markets closed that its deposits sank 40.8%; on Tuesday, traders fled the stock, causing it plummet 49.38% to hit a record low.
    • PRO Artificial intelligence-focused stocks are set for a period of extreme growth, according to Adam Parker, founder and CEO of Trivariate Research and previously Morgan Stanley’s chief U.S. equity strategist. Here are 25 stocks that can capitalize on the A.I. boom, with 15 of them up 20% year to date.

    The bottom line

    Can optimism in tech save markets from resurgent bank fears?

    Investors must have felt an unwelcome sense of déjà vu. First Republic lost almost half its value in a single trading day, dragging down other regional banks. Western Alliance Bancorp lost 5.58%, Charles Schwab fell 3.93% and PacWest Bancorp sank 8.92% (though the Los Angeles-based bank managed to recoup its losses in overnight trading after reporting its earnings).

    Bigger banks weren’t spared, either: The broader SPDR S&P Bank ETF lost 3.68%. Across the Atlantic, UBS shares dropped even though the Swiss bank managed to increase assets in March, suggesting investors are still jumpy at any sign of weakness in banks.

    Losses in the financial sector weighed on major stock indexes. The Dow Jones Industrial Average slid 1.02%, the S&P 500 ended the day 1.58% lower and the Nasdaq Composite lost 1.98%.

    However, Wednesday could look like a very different trading day in the United States. Investors were pleased with how both Alphabet and Microsoft managed to beat estimates on profit and revenue. Shares of those tech giants popped in extended trading and are likely to post more dramatic surges later today. Given Alphabet’s and Microsoft’s immense market capitalization, broader markets stand to benefit from their rise as well.

    If Meta, which is due to report after the bell Wednesday, continues the streak of big tech surpassing Wall Street’s expectations, investors could be in for two good trading days for the Nasdaq, at the very least. That could be enough to banish any lingering sense of déjà vu surrounding banks.

    Subscribe here to get this report sent directly to your inbox each morning before markets open.

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  • What to watch for in the markets in the week ahead: Monster tech earnings, then sell in May?

    What to watch for in the markets in the week ahead: Monster tech earnings, then sell in May?

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  • TikTok has tens of thousands of moderators in Ireland looking for offensive content, CEO says

    TikTok has tens of thousands of moderators in Ireland looking for offensive content, CEO says

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    TikTok CEO Shou Zi Chew testifies before the House Energy and Commerce Committee in the Rayburn House Office Building on Capitol Hill on March 23, 2023 in Washington, DC.

    Chip Somodevilla | Getty Images News | Getty Images

    To spot and remove offensive posts, TikTok has tens of thousands of Ireland-based workers tasked with content moderation, CEO Shou Zi Chew said on Thursday.

    Speaking at the TED2023 Possibility conference in Vancouver, British Columbia, Chew said TikTok has “clear community guidelines” and that executives do not “make any ad-hoc decisions” when dealing with “bad actors” on the Internet who post offensive content on the app.

    “Based on that, we have built a team that is tens of thousands of people plus machines in order to identify content that is bad, and actively proactively remove it from the platform,” Chew said.

    TikTok, which is owned by China’s ByteDance, is under intense pressure from U.S. lawmakers, who want to ban the app over over concerns that it poses a threat to national security. Chew’s comments come weeks after the CEO withstood a barrage of tough questioning from U.S. legislators, who have also criticized TikTok for failing to prevent the spread of offensive content on its platform or address its contribution to a rise in teenage depression.

    “As a company, our goal is not to optimize and maximize time spent,” Chew said on Thursday, adding that, when people are glued to their smartphone screens TikTok “will proactively send you videos to tell you to get off the platform.”

    The harmful content problem is not unique to TikTok. U.S. rivals including Meta, parent of Facebook Instagram, and Google’s YouTube have faced similar questions from lawmakers.

    Chew said TikTok takes the matter seriously.

    “We really encourage parents to have these conversations with their teenagers of what is the right amount of screen time,” Chew said. “I think there’s a healthy relationship that you should have with your screen and, as a business, you know, we believe that that balance needs to be met.”

    Chew also brought up TikTok’s Project Texas initiative, which is at the heart of the company’s effort to reassure the public that the data of U.S. users will remain on domestic soil and won’t fall into the hands of foreign governments, most notably China.

    Although TikTok is partnering with Silicon Valley software vendor Oracle to store and protect user data, U.S. lawmakers are still concerned that the Chinese government could snoop on U.S. citizens or potentially spread propaganda via the TikTok app.

    “I can say that we are building all the tools to prevent any of these actions from happening,” Chew said. “And I’m very confident that with an unprecedented amount of transparency that we’re giving on the platform, we can reduce this risk to as low at zero as possible.”

    WATCH: How TikTok ban will benefit other social media giants like Meta and Twitter

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  • Opinion: Washington needs to get over its TikTok fixation | CNN

    Opinion: Washington needs to get over its TikTok fixation | CNN

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    Editor’s Note: Evan Greer is an activist, writer and musician based in Boston. She’s the director of the digital rights group Fight for the Future, and a regular commentator on issues related to technology policy, LGBTQ communities and human rights. Follow her on Twitter @evan_greer or Mastodon @evangreer@mastodon.online. Read more opinion on CNN.



    CNN
     — 

    The US government is racing ahead with proposals aimed at banning TikTok, the viral video platform used by more than 150 million Americans. Officials say it’s a matter of national security, gesturing urgently toward TikTok’s parent company ByteDance and its ties to China.

    While some might be motivated by thinly-veiled xenophobia, lawmakers also rightly point to concerns about TikTok’s surveillance and capitalist business model, which vacuums up as much personal information about users as possible and then uses it to serve content that keeps us clicking, scrolling, and generating ad revenue. TikTok “spies” on us for profit. That’s not in question.

    The problem is that – while they might not be owned by a Chinese company – Instagram, YouTube, Facebook, Snapchat and Twitter all do it too, as privacy advocates have been warning for more than a decade. Banning TikTok won’t make us safer from China’s surveillance operations. Nor will it protect children, or anyone else, from getting addicted to Big Tech’s manipulative products. It’s just an ineffective solution that sounds good on TV.

    While many governments engage in internet censorship and surveillance, China certainly has one of the most sophisticated and draconian systems. A core characteristic of China’s censorship regime is the “Great Firewall,” which blocks foreign social media apps, news sites and even educational resources like Wikipedia, under the guise of protecting national security.

    As they hyperventilate about TikTok, US politicians are so eager to appear “tough on China” that they’re suggesting we build our very own Great Firewall here at home. There is a small but growing number of countries in the world so authoritarian that they block popular apps and websites entirely. It’s regrettable that so many US lawmakers want to add us to that list.

    Several of the proposals wending their way through Congress would grant the federal government unprecedented new powers to control what technology we can use and how we can express ourselves – authority that goes far beyond TikTok. The bipartisan RESTRICT Act (S. 686), for example, would enable the Commerce Department to engage in extraordinary acts of policing, criminalizing a wide range of activities with companies from “hostile” countries and potentially even banning entire apps simply by declaring them a threat to national security.

    The law is vague enough that some experts have raised concerns that it could threaten individual internet users with lengthy prison sentences for taking steps to “evade” a ban, like side-loading an app (i.e., bypassing approved app distribution channels such as the Apple store) or using a virtual private network (VPN).

    But banning TikTok isn’t just foolish and dangerous, it’s also unconstitutional. The strong free speech protections enshrined in the First Amendment bar the government from extreme actions like criminalizing an app that millions of people use to express their opinions and ideas. The US government can’t ban you from posting or watching TikTok videos any more than they can stop you from reading a foreign newspaper like the Times of India or writing an opinion piece for The Guardian.

    The Washington Post, the New York Times and CNN all have their own official TikTok accounts, as do numerous candidates for office, elected officials, academics, journalists, religious leaders and political figures. Any proposal that results in TikTok’s effective ban in the US would almost certainly fall apart under a legal challenge, as the American Civil Liberties Union and other experts have asserted. Even conservative Republican Senator Rand Paul of Kentucky agrees that banning the app would violate Americans’ right to free speech.

    A ban on TikTok wouldn’t even be effective: The Chinese government could purchase much of the same information from data brokers, which are largely unregulated in the US.

    The rush to ban TikTok – or force its sale to a US company – is a convenient distraction from what our elected officials should be doing to protect us from government manipulation and commercial surveillance: passing some basic data privacy legislation. It’s a matter of common knowledge that Instagram, YouTube, Venmo, Snapchat and most of the other apps on your phone engage in similar data harvesting business practices to TikTok. Some are even worse.

    So it’s not just TikTok. Much of what you do in the digital space on all of your devices is tracked. Companies that engage in the practice claim that they track users’ activities online in order to deliver more targeted advertising and content.

    Many companies sell the data they harvest to third parties, who sell it to fourth and fifth and sixth parties. While companies collect this data for the purpose of extracting profit and getting users hooked on their products, governments have long taken an interest.

    The only way to stop governments from weaponizing data that private companies like TikTok collect and store about us is to stop those companies from collecting and storing so much information in the first place. You can’t do that with censorship. You do that by passing a strong national data privacy law that bans companies from collecting more data about us than they need to provide us with the service we’ve requested.

    Instead of helping Big Tech get bigger by banning a major competitor, Congress should also pass antitrust legislation to crack down on anti-competitive practices. That would give concerned parents and internet users who want to ditch TikTok and Instagram better options to choose from, and reduce the power of the largest platforms, making them harder for governments to exploit and manipulate. It’s much harder for bad actors, whether they’re corporate trolls or government agents, to control information across a constellation of smaller platforms, each with their own rules and algorithms, than it is for them to poison the well when there are a tiny handful of companies controlling access to information.

    A separate concern that lawmakers and US officials have raised is the idea that the Chinese government could pressure TikTok to amplify propaganda, or otherwise change its algorithm to advance the government’s interests. It’s an argument that’s not entirely without merit.

    We know the Russian government was effective in manipulating information on Facebook during the 2016 elections. The US has historically engaged in similar conduct overseas. Consider, for example, the US history in influencing the outcomes of elections in Latin America or disinformation campaigns by US allies after the Arab Spring. State-backed disinformation campaigns are happening at a mass scale and on every major platform. We fight that by demanding more transparency and accountability, not more censorship.

    It’s a national embarrassment that we have no basic data privacy law in the United States. And it’s a travesty that we continue to allow unregulated tech monopolies to trample our rights. Every day that our elected officials spend wringing their hands and spreading moral panic about what the kids are doing on TikTok is another day we’re left vulnerable and unprotected.

    With any luck, Washington’s TikTok hysteria will fade quickly. Let’s hope the next hot new trend in the nation’s capital is passing actual laws that protect people, starting with strong privacy and antitrust legislation.

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  • CNBC Daily Open: Inflation’s cooling on two fronts

    CNBC Daily Open: Inflation’s cooling on two fronts

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    A Whole Foods Market store in San Ramon, California, on August 28, 2017.

    Smith Collection/gado | Archive Photos | Getty Images

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    March’s producer price index confirmed inflation is cooling — and predicts consumer prices will drop further. The S&P 500 closed at its highest in two months.

    What you need to know today

    • U.S. stocks rallied Thursday as another report showed prices are declining. All three major indexes closed in the green, the first time that’s happened in days. Asia-Pacific markets rose Friday on the back of that rally. Japan’s Nikkei 225 climbed 1.07% as the government approved plans to open the country’s first casino, which will be located in Osaka.
    • China’s loans to countries — issued as part of its Belt and Road Initiative — are becoming a problem. As the global economy falters, borrowers are struggling to repay loans to China, and analysts are starting to question the viability of China’s ambitious initiative.
    • Twitter’s users can now trade stocks, cryptocurrency and other financial assets through a partnership with eToro, an online brokerage. It’s another step forward in CEO Elon Musk’s plan for Twitter to become “the biggest financial institution in the world,” as Musk put it last month.
    • Amazon has jumped on the artificial intelligence wagon with Bedrock, its own generative AI service. Unlike other ChatGPT-style products, Bedrock will give users access to different large language models — and let them customize those models for their own purposes, CEO Andy Jassy told CNBC.

    The bottom line

    Is inflation on its way out?

    The latest producer price index suggests so. Last month’s prices were 0.5% lower — emphasis on lower, not a slower rate of increase — than February’s. Stripping out food and energy, the PPI fell 0.1%, bucking an expected 0.2% increase.

    Since the PPI measures how much companies pay to produce consumer goods and other commodities, and since it takes time for price changes to filter down from the producer to the consumer, many think the PPI acts as a forecast for consumer prices.

    And March’s consumer price index report, released Wednesday, already showed that price increases are slowing for consumers. The PPI, then, doesn’t just signal hope — it confirms that investors’ hope wasn’t misplaced. The latter sentiment is much more powerful.

    Little wonder markets rallied Thursday. The S&P 500 was a big winner: It added 1.33% to end the day at its highest level since February. The Dow Jones Industrial Average rose 1.14%, and the Nasdaq Composite climbed 1.99%, snapping a three-day losing streak.

    The Nasdaq was boosted by a surge in tech stocks, which rose on hopes that the Federal Reserve may soon pause increases in interest rates. Amazon shares popped 4.67% — buoyed, also, by the company’s AI announcement. Other big tech rallied too: Alphabet climbed 2.67%, Apple jumped 3.41% and Meta rose 2.97%.

    Friday in the U.S. will be another big day for markets: JPMorgan, Wells Fargo and Citi report earnings before the bell. If the banks’ numbers look good (and they should, I suspect, considering how many depositors fled to bigger banks after SVB’s collapse) — and, more crucially, if the banks think the months ahead won’t be too painful for the bottom line — expect to see another positive day for markets.

    But if they echo the Fed’s expectations of an impending recession, it’s likely Thursday’s optimism will remain a one-day sentiment.

    Subscribe here to get this report sent directly to your inbox each morning before markets open.

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  • CNBC Daily Open: Inflation cooled — and might drop further

    CNBC Daily Open: Inflation cooled — and might drop further

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    A customer pushing a shopping cart shops at a supermarket on March 14, 2023 in San Mateo County, California.

    Liu Guanguan / China News Service | Getty Images

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    March’s producer price index confirmed inflation is cooling — and predicts consumer prices will drop further. The S&P 500 closed at its highest in two months.

    What you need to know today

    • Amazon has jumped on the artificial intelligence wagon with Bedrock, its own generative AI service. Unlike other ChatGPT-style products, Bedrock will give users access to different large language models — and let them customize those models for their own purposes, CEO Andy Jassy told CNBC.

    The bottom line

    Is inflation on its way out?

    The latest producer price index suggests so. Last month’s prices were 0.5% lower — emphasis on lower, not a slower rate of increase — than February’s. Stripping out food and energy, the PPI fell 0.1%, bucking an expected 0.2% increase.

    Since the PPI measures how much companies pay to produce consumer goods and other commodities, and since it takes time for price changes to filter down from the producer to the consumer, many think the PPI acts as a forecast for consumer prices.

    And March’s consumer price index report, released Wednesday, already showed that price increases are slowing for consumers. The PPI, then, doesn’t just signal hope — it confirms that investors’ hope wasn’t misplaced. The latter sentiment is much more powerful.

    Little wonder markets rallied Thursday. The S&P 500 was a big winner: It added 1.33% to end the day at its highest level since February. The Dow Jones Industrial Average rose 1.14%, and the Nasdaq Composite climbed 1.99%, snapping a three-day losing streak.

    The Nasdaq was boosted by a surge in tech stocks, which rose on hopes that the Federal Reserve may soon pause increases in interest rates. Amazon shares popped 4.67% — buoyed, also, by the company’s AI announcement. Other big tech rallied too: Alphabet climbed 2.67%, Apple jumped 3.41% and Meta rose 2.97%.

    Friday in the U.S. will be another big day for markets: JPMorgan, Wells Fargo and Citi report earnings before the bell. If the banks’ numbers look good (and they should, I suspect, considering how many depositors fled to bigger banks after SVB’s collapse) — and, more crucially, if the banks think the months ahead won’t be too painful for the bottom line — expect to see another positive day for markets.

    But if they echo the Fed’s expectations of an impending recession, it’s likely Thursday’s optimism will remain a one-day sentiment.

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  • American teens aren’t excited about virtual reality, with only 4% using it daily

    American teens aren’t excited about virtual reality, with only 4% using it daily

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    A gallery assistant wearing an Oculus Quest 2 virtual reality (VR) headset to view the House of Fine Art (HOFA) Metaverse gallery stands in front of digital artwork “Agoria, _{Compend-AI-M}_ 2022 #16” during a preview in Mayfair, London, UK, on Thursday, Nov. 10, 2022. 

    Hollie Adams | Bloomberg | Getty Images

    Virtual reality hasn’t caught on with American teens, according to a new survey from Piper Sandler released on Tuesday.

    While 29% percent of teens polled owned a VR device — versus 87% who own iPhones — only 4% of headset owners used it daily, the investment firm found, and 14% used them weekly.

    In addition, teenagers didn’t seem that interested in buying forthcoming VR headsets. Only 7% said they planned to purchase a headset, versus 52% of teens polled who were unsure or uninterested.

    The survey results suggest that virtual reality hardware and software has yet to catch on with the public despite billions of dollars in investment in the technology from Big Tech companies and a number of low-cost headsets on the market. Teenagers are often seen as early adopters of new technology and their preferences can provide a preview of where the industry is going.

    “To us, the lukewarm usage demonstrates that VR remains ‘early days’ and that these devices are less important than smartphones,” Piper Sandler analysts wrote.

    The survey also shows that VR is struggling to gain traction as Apple reportedly prepares to announce its own headset as soon as this year. The survey suggests that it may have an uphill climb to convince potential customers.

    Facebook parent Meta is also expected to release new virtual reality headsets later this year. Its Quest 2 headset, which was released in 2020, is by far the leader in the market terms of sales, but shipments declined last year, according to analysts.

    Piper Sandler’s teen study surveyed more than 5,600 teens in the U.S. in February.

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  • Investor Dan Niles likes these tech stocks heading into the second quarter

    Investor Dan Niles likes these tech stocks heading into the second quarter

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  • Club meeting recap: Wall Street looks to finish Q1 higher as our tech stocks shine

    Club meeting recap: Wall Street looks to finish Q1 higher as our tech stocks shine

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  • Analysts are getting bullish on these Nasdaq stocks heading into earnings

    Analysts are getting bullish on these Nasdaq stocks heading into earnings

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  • CNBC Daily Open: First Citizens struck a great bargain

    CNBC Daily Open: First Citizens struck a great bargain

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    An exterior view of First Citizens Bank headquarters on March 27, 2023 in Raleigh, North Carolina.

    Melissa Sue Gerrits | Getty Images News | Getty Images

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    • The Dow Jones Industrial Average and S&P 500 rose Monday as regional banks rallied on improved sentiment. First Republic jumped 11.81%, KeyCorp added 5.31% and PacWest increased 3.46%. Likewise, bank stocks in Europe rose 1.4% — Deutsche Bank, in particular, climbed 6.29% — helping the pan-European Stoxx 600 index close 1.1% higher.
    • Jack Ma, founder of Alibaba, has been spotted in China after spending months out of the country. Analysts think it’s a sign Beijing’s loosening its grip on the technology sector in its pursuit of economic growth this year.
    • PRO Jeremy Siegel, professor at the Wharton School, said the Federal Reserve “basically beat inflation late last year,” citing these indicators.  

    The bottom line

    Investors are heaving a sigh of relief, and it’s all about the banks.

    First Citizens’ purchase of SVB’s assets was a bargain in monetary terms. More crucially, it signaled to markets that, despite SVB’s financial difficulties, there was still value in SVB’s reputation and relationship with its clients. There’s hope, then, of reviving a dead bank — something that can happen only in an environment conducive to such miraculous feats.

    Another troubled bank, First Republic, rallied after it was reported that U.S. authorities were considering giving the bank more time to shore up its liquidity. It might not need much more time, not only thanks to the $30 billion deposit promised to it by a coalition of banks, but also because the outflow of deposits from smaller banks to larger institutions has slowed in recent days, as sources told CNBC’s Hugh Son.

    And beleaguered KeyCorp, which tanked about 60% since the start of the banking turmoil, has a chance of surging 68.6%, according to Citi, which upgraded KeyCorp to buy from neutral.

    The optimism was reflected in the SPDR S&P Regional Banking ETF (KRE), which rose about 0.87%. Major indexes — with the exception of the Nasdaq Composite (more on that in a moment) — closed the day in the green too. The Dow increased 0.6% and the S&P inched up 0.2%. The Nasdaq Composite, however, fell 0.5%.

    Technology shares, which posted sterling gains as banks struggled the past two weeks, are now facing difficulties of their own. Alphabet slid 2.83%, Apple lost 2.8% and Meta fell 1.5%. Charles Schwab’s Liz Ann Sonders noted the S&P 500 information technology sector’s valuation, relative to the performance of the companies, has risen more than 30%. That’s not a sign we’re back in the pandemic days of sky-high tech valuation, but it’s something to keep an eye on as the banking crisis (hopefully) gets contained.

    Subscribe here to get this report sent directly to your inbox each morning before markets open.

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  • 2 tigers recaptured after escaping Georgia safari park during tornado warning | CNN

    2 tigers recaptured after escaping Georgia safari park during tornado warning | CNN

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    CNN
     — 

    Two tigers have been recaptured after escaping a Georgia safari park during a tornado warning Sunday morning, according to the park.

    In a Facebook post, the Wild Animal Safari park in Pine Mountain wrote that it sustained “extensive tornado damage.”

    No staff or animals were injured but “several animal enclosures” were breached and “two tigers briefly escaped,” said the park.

    Since then, both big cats have been “found, tranquilized, and safely returned to a safe enclosure.”

    Wild Animal Safari, a drive-through park, is home to over 75 species of animals housed on 250 acres of land, its website says. Tigers are included in the park’s “walkabout” section, where guests can observe animals in a more zoo-like environment, the website says.

    In a Sunday morning Facebook post, the Troup County Sheriff’s Office said it received a report of a tiger “unaccounted” for inside the park in Pine Mountain, Georgia.

    The park announced that it was closed for Sunday on Facebook. “We have sustained damage at the park and will not be open today,” the post said. “We are working diligently to keep our team and animals safe and will update with more news as it is available.”

    The storm came after a tornado warning was issued for parts of Georgia, including southeastern Troup County.

    Troup County authorities received reports of trees and power lines down after severe weather hit the area, the sheriff’s office said in a Facebook post Sunday morning.

    “We are receiving MULTIPLE reports of trees down, damage on houses and power lines down,” the agency wrote. “If you do not have to get on the roads this morning please do not travel.”

    The county is located about 70 miles southwest of Atlanta.

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  • The digital media rollup dream is dead for the moment — now it’s all about core brand strength

    The digital media rollup dream is dead for the moment — now it’s all about core brand strength

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    BuzzFeed CEO Jonah Peretti stands in front of the Nasdaq market site in Times Square as the company goes public through a merger with a special-purpose acquisition company on December 06, 2021 in New York City.

    Spencer Platt | Getty Images

    When a marriage or an engagement fails, it’s common for the participants to take time to work on themselves.

    That’s where the digital media industry finds itself today.

    After years of focusing on consolidating to better compete with Google and Facebook for digital advertising dollars, many of the most well-known digital media companies have abandoned consolidation efforts to concentrate on differentiation.

    “What you’re finding is companies are trying to find a non-substitutable core,” said Jonathan Miller, the CEO of Integrated Media, which specializes in digital media investments. “The era of trying to put these companies together is over, and I don’t think it’s coming back.”

    A 90% decline in BuzzFeed shares since the company went public in 2021, a failed sales process from Vice, the collapse of special purpose acquisition companies, and a choppy advertising market have made digital media executives rethink their companies’ futures. For the moment, executives have decided that more concentrated investment is better than attempts to gain scale.

    “Right now, everyone’s trying to get through a tougher market by focusing on their strengths,” BuzzFeed CEO Jonah Peretti said in an interview with CNBC. “We’re in this period now where we should just focus on innovating for the future and building more efficient, stronger, better companies.”

    What’s happening in the digital media space echoes trends from the biggest media companies, including Netflix, Disney and Warner Bros. Discovery. After losing nearly half their market values, or more, in 2022, those companies have emphasized what makes them different, whether it be distribution, brand or quality of programming, after years of global expansion and mega-mergers. Disney CEO Bob Iger said the word “brand” more than 25 times at a Morgan Stanley media conference this month.

    “I think brands matter,” Iger said. “The more choice people have, the more important brands become because of what they convey to consumers.”

    Making strategic decisions based on consumer demand rather than investor pressure is a pivot for the industry, said Bryan Goldberg, CEO of Bustle Digital Group, which has acquired and developed a number of brands and sites aimed at women, including Nylon, Scary Mommy, Romper and Elite Daily.

    “Too many of the mergers were driven by investor needs as opposed to consumer needs,” Goldberg said in an interview.

    The rollup dream’s rise and fall

    From late 2018 to early 2022, the digital media industry had a shared goal. Pushed by venture capitalist and private equity investors who had made sizeable investments in the industry during the 2010s, companies such as BuzzFeed, Vice, Vox Media, Group Nine, and Bustle Digital Group, or BDG, were talking to each other, in various combinations, about merging to gain scale.

    “If BuzzFeed and five of the other biggest companies were combined into a bigger digital media company, you would probably be able to get paid more money,” Peretti told The New York Times in November 2018, kicking off a multiyear effort to consolidate.

    The rationale was twofold. First, digital media companies needed more scale to compete with Facebook and Google for digital advertising dollars. Adding sites and brands under one corporate umbrella would boost overall eyeballs for advertisers. Cost-cutting from M&A synergies was an added benefit for investors.

    Second, longtime shareholders wanted to exit their investments. Large legacy media companies such as Disney and Comcast‘s NBCUniversal invested hundreds of millions in digital media in the early and mid-2010s. Disney invested more than $400 million in Vice. NBCUniversal put a similar amount into BuzzFeed. By the end of the decade, after seeing the value of those investments fall, legacy media companies made it clear to digital media executives that they weren’t interested in being acquirers.

    Vice Media offices display the Vice logo in Venice, California.

    Mario Tama | Getty Images

    With no strategic buyer available, merging with each other using publicly traded stock could give VC and PE shareholders a chance to cash out of investments that were well past the standard hold time of seven years. Digital media companies eyed special purpose acquisition companies — also known as SPACs or blank-check companies — as a way to go public quickly. The popularity of SPACs picked up steam in 2020 and peaked in 2021.

    Deal flow accelerated. Vox acquired New York Magazine in September 2019. About a week later, Vice announced it had acquired Refinery29, a digital media company focused on younger women. BuzzFeed bought news aggregator and blog HuffPost in 2020 and then acquired digital publisher Complex Networks in 2021 as part of a SPAC transaction to go public. Vox and Group Nine agreed to a merger later that year.

    BuzzFeed, generally thought by industry executives at the time to have the strongest balance sheet with the best growth narrative, successfully went public via SPAC in December 2021. Shares immediately tanked, falling 24% in their first week of trading. The coming weeks and months were even worse. BuzzFeed opened at $10 per share. The stock currently trades at about $1 — a 90% loss of value.

    BuzzFeed’s underwhelming performance coincided with the implosion of the SPAC market in early 2022 as interest rates rose. Other companies that planned to follow BuzzFeed shut down their efforts to go public completely. Vice tried and failed. Now it’s trying for the second time in two years to find a buyer. BDG and Vox, meanwhile, abandoned considerations to go public. Vox instead sold a 20% stake in itself in February to Penske Media, which owns Rolling Stone and Variety.

    The industry turns inward

    Consolidation was always a flawed strategy because digital media could never become big enough to compete with Facebook and Google, said Integrated Media’s Miller.

    “You have to have sufficient amount of scale to matter, but that’s not a winning formula by itself,” Miller said.

    Vice’s deal for Refinery29 is a prime example of a deal motivated by scale that lacked consumer rationale, said BDG’s Goldberg.

    “The digital media rollup has proven successful only when assets are thoughtfully combined with an eye toward consumers,” Goldberg said. “In what world did Vice and Refinery29 make sense in combination?” 

    Vice is engaged in sale talks with a number of buyers that fall outside the digital media landscape, CNBC previously reported. It’s also considering selling itself in pieces if there’s more interest in parts of the company, such as its TV production assets and its ad agency, Virtue.

    Vice is a cautionary tale of what happens to a digital media company when its brand loses luster, Miller said. Valued at $5.7 billion in 2017, Vice is now considering selling itself for around $500 million, according to people familiar with the matter, who asked not to be named because the sale discussions are private.

    A Vice spokesperson declined to comment.

    “In the old days of media, with TV networks, if you were down, you could revive yourself with a hit,” said Miller. “In the internet age, everything is so easily substitutable. If Vice goes down, the audience just moves on to something else.”

    Companies such as BuzzFeed, Vox and BDG are now trying to find an enduring relevancy amid a myriad of information and entertainment options. BuzzFeed has chosen to lean in to artificial intelligence, touting new AI-generated quizzes and other content that fuses the work of staff writers with AI databases.

    BDG has chosen to primarily target female audiences across lifestyle categories.

    Vox has focused on journalism and information across a number of different verticals. That’s a strategy that hasn’t really changed even as the market has turned against digital media, allowing Vox CEO Jim Bankoff the opportunity to continue to hunt for deals. Just don’t expect the partners to be Vice, BDG or BuzzFeed.

    “We want to be the leading modern media company with the strongest portfolio of brands that serve their audiences on modern platforms — websites, podcasts, streaming services — while building franchises through multiple revenue streams,” Bankoff said. “There’s no doubt M&A is part of our playbook, and we expect it will continue to be in the future.”

    Finding an exit

    While executives may be making strategy decisions with a sharper eye toward the consumer, the problem of finding an exit for investors remains. Differentiation may open up the pool of potential buyers beyond the media industry. BuzzFeed’s emphasis on artificial intelligence could attract interest from technology platforms, for instance.

    It’s also possible that there will be an eventual second wave of peer-to-peer mergers. While Integrated Media’s Miller doesn’t expect a future industry rollup, BuzzFeed’s Peretti hasn’t closed the door on the concept if market conditions improve. As executives invest in fewer ideas and verticals, the end result could be healthier companies that are more attractive merger partners, he said.

    “If everyone invests in what they’re best at, if you put them back together, you’d have that diversified digital media company with real scale,” Peretti said. “That helps drive commerce for all parts of a unified company. I think it’s still possible.”

    Disclosure: Comcast’s NBCUniversal is the parent company of CNBC.

    WATCH: Axios’ Sara Fischer on BuzzFeed’s continuing struggles

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  • Bank turmoil is boosting appetite for specific sector ETFs. Here’s why

    Bank turmoil is boosting appetite for specific sector ETFs. Here’s why

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    It appears specific sector ETFs are gaining popularity as a way to cushion bank-turmoil fallout.

    According to VettaFi’s Todd Rosenbluth, the trend applies to ETFs holding only a few large companies in particular industries.

    “[They’re] going to be a complement to a broader S&P 500 strategy,” the firm’s head of research told CNBC’s “ETF Edge” on Monday. “We’re seeing this year that active management and actively managed ETFs in particular have been relatively popular in complement to an existing core strategy.”

    Rosenbluth asserts the narrow focus of big-cap sector ETFs can boost potential gains.

    “[In] the same way that you might do individual stocks of favored names … now you’re getting the benefits of five or six of these companies to augment that,” he added. 

    When asked whether these sector ETFs were attempting to reintroduce FAANG stocks — which refers to the five popular tech companies Meta, formerly Facebook, (META); Amazon (AMZN); Apple (AAPL); Netflix (NFLX); and Alphabet (GOOG) — Rosenbluth explained it’s difficult to build ETFs with exposure to only big-cap stocks because companies might be classified in different sectors.

    “You can’t get that right now easily with an ETF [holding] just those five or six stocks,” he said. “If you really wanted to make a call on just those five or six companies, there’s an ETF that soon is coming.”

    Yet, last week on “ETF Edge,” Astoria Advisors’ John Davi suggested bank upheaval could expose problems lurking in ETFs tied to specific sectors.

    “You need to be mindful of your risk,” said Davi, who runs the AXS Astoria Inflation Sensitive ETF.

    For others, the bank turmoil is creating opportunities.

    ‘Not just a stand-alone opportunity’

    Roundhill Investments, an ETF issuer, is planning to launch three big-cap sector ETFs: Big Tech (BIGT), Big Airlines (BIGA) and Big Defense (BIGD).

    These “BIG ETFs” will join its Big Bank ETF (BIGB), which launched last Tuesday. Its median market cap is $145.5 billion, per the company’s website.

    Dave Mazza, the firm’s chief strategy officer, sees similar opportunities for growth beyond the financials sector.

    “People are bidding up some of the larger names, especially in the banking space, because they may be the beneficiaries over the greater regulation coming there,” he said. “The intention here is that [the BIGB] is not just a stand-alone opportunity, but the idea [of] being a leader and potential sweep down the line.”

    The Roundhill Big Bank ETF is down almost 5% since its launch based on Friday’s close.

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  • Utah governor signs bill requiring teens to get parental approval to join social media sites | CNN Business

    Utah governor signs bill requiring teens to get parental approval to join social media sites | CNN Business

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    New York
    CNN
     — 

    The governor of Utah signed a controversial bill on Thursday that will require minors to obtain the consent of a guardian before joining social media platforms, marking the most aggressive step yet by state or federal lawmakers to protect kids online.

    As part of the bill, called the Utah Social Media Regulation Act, social media platforms will have to conduct age verification for all Utah residents, ban all ads for minors and impose a curfew, making their sites off limits between the hours of 10:30 p.m. – 6:30 a.m. for anyone under the age of 18. The bill will also require social platforms to give parents access to their teens’ accounts.

    The legislation, which was introduced by Republican Sen. Michael McKell and passed by Republican Governor Spencer Cox, will go into effect on March 1, 2024.

    “When it comes down to it, [the bill] is about protecting our children,” McKell said in a statement to CNN, citing how depression, anxiety and suicidal ideation has “drastically increased” among teens in Utah and across the United states Slongside the growth of social media sites. “As a lawmaker and parent, I believe this bill is the best path forward to prevent our children from succumbing to the negative and sometimes life-threatening effects of social media.”

    The legislation comes after years of US lawmakers calling for new safeguards to protect teens online, amid concerns about social platforms leading younger users down harmful rabbit holes, enabling new forms of bullying and harassment and adding to what’s been described as a teen mental health crisis in the country. To date, however, no federal legislation has passed.

    Utah is the first of a broader list of states introducing similar proposals. In Connecticut and Ohio, for example, lawmakers are working to pass legislation that would require social media companies to get parent permission before users under age 16 can join.

    “We can assume more methods like the Utah bill could find their way into other states’ plans, especially if actions are not taken at the federal level,” said Michael Inouye, an analyst at ABI Research. “Eventually, if enough states implement similar or related legislation, we could see a more concerted effort at the federal level to codify these (likely) disparate state laws under a US-wide policy.”

    Industry experts and Big Tech companies have long urged the US government to introduce regulations that could help keep young social media users safe. But even before the bill’s passage, some had raised concerns about the impact of the legislation. The Electronic Frontier Foundation, a digital rights group, said Utah’s specific set of rules are “dangerous” when it comes to user privacy and added that the bill will make user data less secure, internet access less private and infringe upon younger users’ basic rights.

    “Social media provides a lifeline for many young people, in addition to community, education, and conversation,” said Jason Kelley, director of activism at the EFF. “They use it in part because it can be private … The law, which would limit social media access and require parental consent and monitoring for minors, will incalculably harm the ability of young people to protect their privacy and deter them from exercising their rights.”

    Lucy Ivey, an 18-year-old TikTok influencer who attends Utah Valley University, agreed, saying some of her friends in the LGBTQ community may face challenges with the change.

    “My worry with this bill is that it will take away privacy from teenagers, and a lot of kids don’t have good relationships with their parents or don’t have a reliable guardian that would be needed to get access to social media,” she told CNN. “I think about my LGBTQ friends; some who have had a hard time with their parents because of their sexuality or identity, and they could be losing an important place where they can be themselves, and be seen and heard.”

    Ivey, who launched a publication called Our Era at age 15 and amplified its content on TikTok, said she’s also concerned about how the bill will impact content creators like herself. (If a legal guardian disapproves of a teens’ online activity or digital presence, those individuals may have to put their accounts on hold until they are 18 years old.)

    “With a new law like this, they may now be intimidated and discouraged by the legal hoops required to use social media out of fear of authority or their parents, or fear of losing their privacy at a time when teens are figuring out who they are,” Ivey said.

    Facebook-parent Meta told CNN it has the same goals as parents and policymakers, but the company said it also wants young people to have safe, positive experiences online and keep its platforms accessible. Antigone Davis, the global head of safety for Meta, said the company will “continue to work closely with experts, policymakers and parents on these important issues.”

    Representatives for TikTok and Snap did not respond to a request for comment.

    Given that the bill is unprecedented, it’s unclear how exactly the social media companies will adapt. For example, the legislation calls for platforms to turn off algorithms for “suggested content.” This particular guideline may help keep teens from falling down rabbit holes toward potentially harmful content, but it could present new issues, too. It might mean the company would no longer have the oversight and control over downranking problematic content that may show up in a user’s feed.

    Some of the bill’s guidelines may also be difficult to enforce. Inouye said minors could “steal” identities – such as from family members who don’t use social media – to create accounts that they can access and use without oversight. VPNs could also complicate matching IP addresses to the states of the users, he said.

    But even if legislative steps from Utah and other states prove to be flawed, Inouye says “these early efforts are at minimum bringing attention to these issues.”

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  • The scrutiny on TikTok could be bad news for U.S. companies, Fast Money traders say

    The scrutiny on TikTok could be bad news for U.S. companies, Fast Money traders say

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  • Why Bucks County, Pennsylvania, is suing social media companies | CNN Business

    Why Bucks County, Pennsylvania, is suing social media companies | CNN Business

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    CNN
     — 

    One mother in Bucks County, Pennsylvania, said her 18-year-old daughter is so obsessed with TikTok, she’ll spend hours making elaborate videos for the Likes, and will post retouched photos of herself online to look skinnier.

    Another mother in the same county told CNN her 16-year-old daughter’s ex-boyfriend shared partially nude images of the teen with another Instagram user abroad via direct messages. After a failed attempt at blackmailing the family, the user posted the pictures on Instagram, according to the mother, with some partial blurring of her daughter’s body to bypass Instagram’s algorithms that ban nudity.

    “I worked so hard to get the photos taken down and had people I knew from all over the world reporting it to Instagram,” the mother said.

    The two mothers, who spoke with CNN on condition of anonymity, highlight the struggles parents face with the unique risks posed by social media, including the potential for online platforms to lead teens down harmful rabbit holes, compound mental health issues and enable new forms of digital harassment and bullying. But on Friday, their hometown of Bucks County became what’s believed to be the first county in the United States to file a lawsuit against social media companies, alleging TikTok, Instagram, YouTube, Snapchat and Facebook have worsened anxiety and depression in young people, and that the platforms are designed to “exploit for profit” their vulnerabilities.

    “Like virtually everywhere in the United States now … Bucks County’s youth suffer from a high degree of distraction, depression, suicidality, and other mental disorders, caused or worsened by the overconsumption of social media on a daily basis, which substantially interferes with the rights of health and safety common to the general public,” the lawsuit alleged.

    The lawsuit, which was filed in California federal court, said “the need is great” to continue to fund mental health outpatient programs, mobile crisis units, family-based mental health services, and in-school mental health programming and training to address the mental health of young people. Bucks County is seeking unspecified monetary damages to help fund these initiatives.

    Bucks County is joining a small but growing number of of school districts and families who have filed lawsuits against social media companies for their alleged impact on teen mental health. The unusual legal strategy comes amid broader concerns about a mental health crisis among teens and hints at the urgency parents and educators feel to force changes in how online platforms operate at a time when legislative remedies have been slow in coming.

    Seattle’s public school system, which is the largest in the state of Washington with nearly 50,000 students, and San Mateo County in California have each filed lawsuits against several Big Tech companies, claiming the platforms are harming their students’ mental health. Some families have also filed wrongful death lawsuits against tech platforms, alleging their children’s social media addiction contributed to their suicides.

    “I want to hold these companies accountable,” Bucks County district attorney Matthew Weintraub told CNN. “It is no different than opioid manufacturers and distributors causing havoc among young people in our communities.”

    He believes he has an actionable cause to file a lawsuit “because the companies have misrepresented the value of their products.”

    “They said their platforms are not addictive, and they are; they said they are helpful and not harmful, but they are harmful,” he said. “My hope is that there will be strength in numbers and other people from around the country will join me so there will be a tipping point. I just can’t sit around and let it happen.”

    In response to the lawsuit, Antigone Davis, the global head of safety for Instagram and Facebook-parent Meta, said the company continues to pour resources into ensuring its young users are safe online. She added that the platforms have more than 30 tools to support teens and families, including supervision tools that let parents limit the amount of time their teens spend on Instagram, and age-verification technology that helps teens have age-appropriate experiences.

    “We’ll continue to work closely with experts, policymakers and parents on these important issues,” she said.

    Google spokesperson José Castañeda said it has also “invested heavily in creating safe experiences for children across our platforms and have introduced strong protections and dedicated features to prioritize their well being.” He pointed to products such as Family Link, which provides parents with the ability to set reminders, limit screen time and block specific types of content on supervised devices.

    A Snap spokesperson said it is “constantly evaluating how we continue to make our platform safer, including through new education, features and protections.”

    TikTok did not respond to a request for comment.

    The latest lawsuit comes nearly a year and a half after executives from several social media platforms faced tough questions from lawmakers during a series of congressional hearings over how their platforms may direct younger users — particularly teenage girls — to harmful content, damaging their mental health and body image. Since then, some lawmakers have called for legislation to protect kids online, but nothing has passed at the federal level.

    Carl Tobias, a professor at the University of Richmond School of Law, believes it will be “difficult” for counties and school districts to win lawsuits against social media companies.

    “There will be the issues of showing that the social media content was the cause of the harm that befell the children,” he said. “But that doesn’t mean they shouldn’t file these lawsuits.”

    Tobias added that increased support for government regulation that would impose more restrictions on companies could impact the outcome of these lawsuits in their favor.

    “For now, there will be different judges or juries with diverse views of this around the country,” he said. “They aren’t going to win all of the cases but they might win some of them, and that might help.”

    Whatever the outcome, the mother of the 16-year-old whose intimate photos were shared on Instagram is applauding the district attorney’s office for sending a strong message to social media companies.

    “Before the incident with my daughter, I would not have given a lawsuit filed by the county much thought,” she said. “But now that I know how hard it was to take content down and there’s only so much people can do; corporations need to do so much more to protect its users.”

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  • Time to buy the tech rally? Hedge fund manager Dan Niles and others reveal their top picks

    Time to buy the tech rally? Hedge fund manager Dan Niles and others reveal their top picks

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