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Tag: Meta Platforms Inc

  • Meta rolls out paid verification option for Facebook and Instagram users in US | CNN Business

    Meta rolls out paid verification option for Facebook and Instagram users in US | CNN Business

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    New York
    CNN
     — 

    Facebook and Instagram users in the United States will soon be able to pay to get a coveted blue check on their account.

    Meta on Friday began testing a paid verification option for US users of the two social networks, CEO Mark Zuckerberg announced on Instagram. The company plans to gradually roll out the paid option to more US users over the next few weeks.

    First tested in February in Australia and New Zealand, Meta Verified starts at $11.99 a month on the web or $14.99 a month on mobile. In addition to verification, the option offers perks such as extra protection from impersonation accounts and direct access to customer support.

    To avoid fake accounts, customers who want to get the blue badge would need to provide a government ID which matches their profile name and picture. Users must also be above 18 to be eligible for the new service.

    “This new feature is about increasing authenticity and security across our services,” Zuckerberg wrote in February in an Instagram broadcast channel.

    Meta joins other platforms, like Discord, Reddit and YouTube, which have their own subscription-based models. Twitter relaunched its own verification subscription service, Twitter Blue, in December, after an onset of fake “verified” accounts forced it to pull the feature. Twitter Blue costs $11 a month for iOS and Android subscribers, part of owner Elon Musk’s attempt to raise its subscriptions business after buying the platform for $44 billion.

    For Meta, the move offers the promise of another revenue stream beyond advertising, at a time when its core ad sales business is under pressure from a number of factors, including privacy changes on Apple and tightening budgets amid recession fears.

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  • Twitter could have a new rival — a platform created by Meta | CNN Business

    Twitter could have a new rival — a platform created by Meta | CNN Business

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    New York
    CNN
     — 

    Facebook-parent Meta is exploring building a new, standalone platform for sharing text updates, the company confirmed to CNN on Friday, in what could mark the most high-profile new contender to take on Twitter as it falters under Elon Musk.

    “We believe there’s an opportunity for a separate space where creators and public figures can share timely updates about their interests,” a Meta spokesperson said in a statement to CNN, which essentially described Twitter’s mission statement without naming the platform.

    The platform, plans for which were earlier reported by Platformer and MoneyControl, would be decentralized, meaning users could ostensibly create different servers or communities, each with their own rules rather than one central platform controlled by Meta. The concept is similar to Reddit or Discord, but a departure from how Meta’s other platforms function.

    If Meta’s new platform were decentralized, it could allow third parties to build apps and features into the platform, potentially giving users experiences beyond what Meta itself might build.

    The effort, codenamed P92, is in its early stages and is being led by Instagram head Adam Mosseri, according to Platformer.

    Meta declined to comment beyond its statement, including in response to questions about the new platform’s potential features or a timeline for launch.

    A number of upstart platforms have in recent months attempted to capitalize as Twitter struggles with frequent outages, the return of controversial users and a drop-off in advertisers. Many of them had an early jump in users following Musk’s takeover at Twitter, but have since struggled to gain widespread adoption.

    Mastodon, a decentralized social network that was launched in 2016, grew its user base from 300,000 users to more than 2.5 million in the weeks after Musk completed his acquisition of Twitter in late October. But its growth has slowed in recent months, in part as users struggle with the somewhat less straightforward and user-friendly nature of a decentralized platform.

    A new service from Meta, however, could benefit from the existing, large user base of the company’s other platforms, including the two billion people who use Facebook daily.

    Plans for a new platform come as Meta is also shifting the strategy for its older platforms, emphasizing video and recommended content in an effort to better compete with TikTok. Earlier this week, Facebook head Tom Alison told CNN that the app is testing reincorporating messaging so that users don’t have to go to a separate app to share content they find on Facebook.

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  • What metaverse? Meta says its single largest investment is now in ‘advancing AI’ | CNN Business

    What metaverse? Meta says its single largest investment is now in ‘advancing AI’ | CNN Business

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    CNN
     — 

    Roughly a year-and-a-half after Facebook renamed itself “Meta” and said it would go all-in on building a future version of the internet dubbed the metaverse, the tech giant now says its top investment priority will be advancing artificial intelligence.

    In a letter to staff Tuesday, CEO Mark Zuckerberg announced plans to lay off another 10,000 employees in the coming months, and doubled down on his new focus of “efficiency” for the company. The pivot to efficiency, first announced last month in Meta’s quarterly earnings call, comes after years of investing heavily in growth, including in areas with unproven potential like virtual reality.

    Now, Zuckerberg says the company will focus mostly on cutting costs and streamlining projects. Building the metaverse “remains central to defining the future of social connection,” Zuckerberg wrote, but that isn’t where Meta will be putting most of its capital.

    “Our single largest investment is in advancing AI and building it into every one of our products,” Zuckerberg said Tuesday. He nodded to how AI tools can help users of its apps express themselves and “discover new content,” but also said that new AI tools can be used to increase efficiencies internally by helping “engineers write better code faster.”

    The comments come after what the CEO described as a “humbling wake-up call” last year, as the “world economy changed, competitive pressures grew, and our growth slowed considerably.”

    Meta and its predecessor Facebook have been involved in AI research for years, but the remarks come amid a heightened AI frenzy in the tech world, kicked off in late November when Microsoft-backed OpenAI publicly released ChatGPT. The technology quickly went viral for its ability to generate compelling, human-sounding responses to user prompts and then kicked off an apparent AI arms race among tech companies. Microsoft announced in early February that it was incorporating the tech behind ChatGPT into its search engine, Bing. A day before Microsoft’s announcement, Google unveiled its own AI-powered tool called Bard. And not to be left behind, Meta announced late last month that it was forming a “top-level product group” to “turbocharge” the company’s work on AI tools.

    “I do think it is a good thing to focus on AI,” Ali Mogharabi, a senior equity analyst at Morningstar, told CNN of Zuckerberg’s comments. Mogharabi said Meta’s investments in AI “has benefits on both ends” because it can improve efficiency for engineers creating products, and because incorporating AI features into Meta’s lineup of apps will potentially create more engagement time for users, which can then drive advertising revenue.

    And in the long run, Mogharabi said, “A lot of the investments in AI, and a lot of enhancements that come from those investments in AI, could actually be applicable to the entire metaverse project.”

    But Zuckerberg’s emphasis on investing in AI, and using the buzzy technology’s tools to make the company more efficient and boost its bottom line, is also “what the shareholders and the market want to hear,” Mogharabi said. Many investors had previously griped at the company’s metaverse ambitions and spending. In 2022, Meta lost more than $13.7 billion in its “Reality Labs” unit, which houses its metaverse efforts.

    And investors appear to welcome Zuckerberg’s shift in focus from the metaverse to efficiency. After taking a beating in 2022, shares for Meta have surged more than 50% since the start of the year.

    Angelo Zino, a senior equity analyst at CFRA Research, said on Tuesday that the second round of layoffs at Meta “officially make us convinced that Mark Zuckerberg has completely switched gears, altering the narrative of the company to one focused on efficiencies rather than looking to grow the metaverse at any cost.”

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  • Meta to lay off 10,000 more workers after initial cuts in November

    Meta to lay off 10,000 more workers after initial cuts in November

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    Meta will lay off 10,000 more workers and incur restructuring costs ranging from $3 billion to $5 billion, the company announced Tuesday, with CEO Mark Zuckerberg warning economic instability could continue for “many years.”

    Meta shares closed up 7% on Tuesday.

    “Here’s the timeline you should expect: over the next couple of months, org leaders will announce restructuring plans focused on flattening our orgs, canceling lower priority projects, and reducing our hiring rates,” Zuckerberg said in a message to employees, which was also posted to the technology company’s blog.

    He added that the Facebook parent plans to close 5,000 additional open roles that it hasn’t yet filled. In a nod to continued economic uncertainty, Zuckerberg noted that the company should prepare for “the possibility that this new economic reality will continue for many years.”

    In a SEC filing announcing the cuts, Meta also said it anticipated lowered total expenses in 2023, ranging from $86 billion to $92 billion.

    The new round of layoffs follows a previous round of cuts, announced in November, that affected more than 11,000 workers, which equated to roughly 13% of Meta’s overall staff.

    Zuckerberg has pitched 2023 as the company’s “year of efficiency,” in which the firm aims to become “a stronger and more nimble organization.”

    “We are a technology company, and our ultimate output is what we build for people,” Zuckerberg said. As part of the restructuring, the company will also increase the number of direct reports each manager has.

    Facebook Chairman and CEO Mark Zuckerberg testifies before the House Financial Services Committee on “An Examination of Facebook and Its Impact on the Financial Services and Housing Sectors” in the Rayburn House Office Building in Washington, DC on October 23, 2019.

    MANDEL NGAN | AFP | Getty Images

    Zuckerberg told analysts in February that Meta plans “on cutting projects that aren’t performing or may no longer be crucial” while simultaneously “removing layers of middle management to make decisions faster.”

    “A leaner org will execute its highest priorities faster,” Zuckerberg’s message said.

    Still, Meta continues to spend billions of dollars developing the virtual reality and augmented reality technologies required to build the digital universe coined the metaverse. The company’s Reality Labs division that’s tasked with creating the metaverse lost about $13.7 billion in 2022 on $2.16 billion of revenue.

    Amazon announced a new round of layoffs in January, impacting 18,000 employees across multiple divisions.

    TwilioDellZoom and eBay also recently disclosed significant reductions to their workforce. In January, Google revealed plans to lay off more than 12,000 workersMicrosoft announced plans to cut 10,000 employees and Salesforce said it planned to cut 7,000 jobs.

    CNBC’s Ashley Capoot contributed to this report.

    Watch: The regulators were too slow with acting to help SVB

    US regulators were too slow to help SVB, says Bullpen Capital's Duncan Davidson

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  • Facebook-parent Meta plans to lay off another 10,000 employees | CNN Business

    Facebook-parent Meta plans to lay off another 10,000 employees | CNN Business

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    CNN
     — 

    Facebook-parent Meta plans to lay off another 10,000 workers, marking the second round of significant job cuts announced by the tech giant in four months.

    The latest layoffs, announced on Tuesday, come after Meta said in November that it was eliminating approximately 13% of its workforce, or 11,000 jobs, in the single largest round of cuts in the company’s history.

    In a Facebook post Tuesday, CEO Mark Zuckerberg said the job cuts will take place “over the next couple of months.”

    “We expect to announce restructurings and layoffs in our tech groups in late April, and then our business groups in late May,” he wrote. In a “small number of cases, it may take through the end of the year to complete these changes.”

    “Overall, we expect to reduce our team size by around 10,000 people and to close around 5,000 additional open roles that we haven’t yet hired,” Zuckerberg said.

    As of September 2022, Meta reported a headcount of 87,314, per a securities filings. With 11,000 job cuts announced in November and the 10,000 announced Tuesday, that would bring Meta’s headcount down to around 66,000.

    Meta is far from the only Big Tech company to undergo layoffs amid higher inflation, recession fears and a whiplash in pandemic-induced demand. In the first months of this year, Amazon, Google-parent Alphabet and Microsoft have all confirmed major job cuts impacting tens of thousands of tech workers.

    Shares of Meta rose more than 4% in early trading Tuesday following the announcement.

    When the first round of job cuts was announced in November, Zuckerberg blamed himself at the time for the company’s over-hiring earlier in the pandemic. Meta  nearly doubled its headcount between March 2020 and September of last year, as the Covid-19 crisis led to a surge in demand for digital services.

    But the situation changed radically for the social media giant and other tech companies last year as pandemic restrictions eased and people returned to their offline lives. Meta’s core business was also hit by privacy changes implemented by Apple and advertisers tightening budgets amid recession fears.

    In its most-recent quarterly earnings report, Meta posted a sharp drop in profits and reported its third straight quarterly decline in revenue. But during the earnings call, Zuckerberg promised investors that 2023 would be the “year of efficiency” for the company, following years of heavy investment in growth and a more immersive version of the internet called the metaverse.

    On that call, Zuckerberg also suggested that more job cuts could be coming.

    “We closed last year with some difficult layoffs and restructuring some teams. When we did this, I said clearly that this was the beginning of our focus on efficiency and not the end,” Zuckerberg said during the earnings call in early February. He added that the company would be focused on “flattening” its org structure and “removing some layers of middle management to make decisions faster.”

    “As part of this, we’re going to be more proactive about cutting projects that aren’t performing or may no longer be as crucial, but my main focus is on increasing the efficiency of how we execute our top priorities,” Zuckerberg said.

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  • As tech gets hit again, strategists say these stocks present a buying opportunity

    As tech gets hit again, strategists say these stocks present a buying opportunity

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  • China censors women modeling lingerie on livestream shopping — so men are doing it | CNN Business

    China censors women modeling lingerie on livestream shopping — so men are doing it | CNN Business

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    Hong Kong
    CNN
     — 

    Donning a sassy piece of silk lingerie, a male model grooves to the beat and forms a heart shape with his fingers during a livestreaming session on Douyin, one of China’s most popular video-sharing platforms.

    His modeling performance is the latest illustration of the kind of entrepreneurial innovation sometimes needed to bypass China’s rigorous internet censorship, a dragnet that can ensnare seemingly innocuous activities – in this case retailers selling women’s underwear online.

    China deploys one of the world’s most stringent censorship regimes, with a track record of blocking out not just politically sensitive information but images of women’s bodies deemed marginally racy.

    Several businesses specializing in selling lingerie through livestreaming have had their sessions cut short after they featured a female model and their brush with internet censorship came to light in January.

    Hence the use of men instead.

    On one of the sales channels, a man is seen dressed in black lingerie, standing next to a mannequin showing a similar outfit, in what appears to be a screenshot of a livestream broadcast on Alibaba

    (BABA)
    ’s Taobao Live, a streaming platform for the e-commerce giant.

    In another image, a different male model put on a pink slip dress and silky shawl, accessorized with cat ear headbands.

    In one livestream clip, carried by multiple state media outlets, an owner of an online venture said he was simply trying to play it safe.

    “This is not an attempt at sarcasm. Everyone is being very serious about complying with the rules,” the man, who identified himself as Mr Xu, said.

    The emergence of male lingerie models has caused mixed views online in China, from merriment and annoyance to reluctant acceptance.

    “So what should I do if I want to promote and showcase lingerie in the live broadcast session? It’s very simple, find a man to wear it,” read one comment on China’s microblogging site Weibo.

    A man in a mini slip dress and velvet robe models beside a woman in pajamas in a video posted on Douyin on February 17, 2023.

    Livestreaming sales of products is a multibillion-dollar industry in mainland China, and was given a major boost during the three years of the country’s strict Covid lockdowns that battered many bricks and mortar businesses.

    As of June last year, the number of livestreaming e-commerce users in mainland China is over 460 million, according to the Academy of China Council for the Promotion of International Trade, a body affiliated with Beijing’s commerce ministry.

    A 2021 report by iResearch, a Beijing-based firm specializing in measuring audience growth online, predicted the livestream sector would be worth as much as $720 billion this year.

    Male models are not the only workaround.

    On Douyin, the Chinese domestic version of TikTok, other female models have circumvented the censorship by showcasing the latest style of lingerie on themselves on top of a t-shirt they are already wearing.

    Others displayed the items on mannequins.

    In 2015, China led a crackdown on television shows exposing actresses’ cleavage, forcing some of the most popular costume dramas to zoom in on their faces to avoid getting into trouble with the broadcast authorities.

    Having male influencers promoting female-oriented products is not new in China, either.

    One of the industry’s most successful livestream shopping influencers is Austin Li Jiaqi, who made his name as the “Lipstick King” after selling 15,000 lipsticks in just five minutes in 2018.

    As one of China’s biggest internet celebrities, Li also peddles cosmetics, skincare products and fashion apparel, often applying products he’s selling to his own face.

    Even outside of China, platforms such as Facebook and Instagram have faced criticism for restricting the sharing of images involving partial nudity, especially of women.

    Facebook and Instagram’s parent company, Meta, restricts the sharing of breasts, although it says it intends “to allow images that are shared for medical or health purposes.” But even Meta’s own Oversight Board has called on the company to make its policy less confusing and more gender inclusive.

    YouTube says it prohibits “the depiction of clothed or unclothed genitals, breasts, or buttocks that are meant for sexual gratification,” but it may age-restrict other images or videos involving nudity.

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  • Meta’s Instagram back up after brief global outage | CNN Business

    Meta’s Instagram back up after brief global outage | CNN Business

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    Meta Platform’s Instagram was back up for most users after a global outage, the photo-sharing platform said on Thursday, adding that an hours-long technical issue has been resolved.

    “Earlier tonight, a technical issue caused people to have trouble accessing Instagram. We resolved this issue for everyone as quickly as possible,” Instagram said in a tweet.

    Downdetector, which tracks outages, reported more than 53,000 incidents of users unable to access Instagram at the peak of the outage. The website collates status reports from a number of sources, including user-submitted errors on its platform.

    As Instagram was coming back online, Downdetector said reports of outages had fallen below 1,000 in the United States.

    Reports of issues came down to less than 100 reports in the UK, India, Japan and Australia, the outage-tracking website showed.

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  • Facebook tests bringing back in-app messaging features as it competes with TikTok | CNN Business

    Facebook tests bringing back in-app messaging features as it competes with TikTok | CNN Business

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    New York
    CNN
     — 

    Nearly a decade after Facebook angered some users by splitting off messaging features from its flagship social networking application and forcing people to download a separate app to chat with friends, the company is now testing out reversing the move.

    In an interview with CNN, Facebook head Tom Alison said the platform is testing bringing messaging capabilities back to the Facebook app so users can more easily share content without having to use the Messenger app. The test comes as Facebook looks to beat back competition from TikTok by bolstering its position both as a platform to discover new content and discuss it.

    “We believe that content feeds into not just you consuming it but being conversation starters and starting that message thread with your friends or being something that you can share into a group of people who share your same interests,” Alison said. “I think the thing that will differentiate Facebook and Instagram from TikTok and others is just the depth of being able to start a conversation with your friends from this content and have that kind of social dimension.”

    The move, which Alison also announced in a blog post Tuesday, comes after Facebook revised its strategy last year amid concerns about a stagnant and aging user base. No longer would the platform simply be about connecting friends and family. Instead, founder Mark Zuckerberg wanted Facebook to become a “discovery engine.”

    Facebook redesigned its home feed to surface more entertaining posts from across the platform, with AI-powered content recommendations, rather than just showing posts from those specifically in a user’s network. (A new, separate tab fulfilled the desire for the latter.) The goal was clear: to keep users engaged longer and help the platform better compete with TikTok and its steady stream of recommended content.

    Nine months later, that shift has begun to pay off, Alison told CNN. The platform last month reported that it hit 2 billion daily active users in the December quarter.

    “A lot of the narrative leading up to this has been that Facebook is in decline or Facebook’s best days are behind it,” Alison said, “and part of what we’re trying to do with this milestone is say, ‘hey, look, that’s actually not true.”

    There have been no shortage of rumors of Facebook’s demise over the years, from its admission of having a “teen problem” a decade ago to the more recent series of PR debacles for the social network and its parent company, Meta. TikTok’s rapid rise and even the success of Facebook’s sister service, Instagram, have also taken some of the shine off the aging social network Zuckerberg launched in a dorm room nearly 20 years ago. But its audience has resumed growing, for now.

    Alison, who has been in charge of the Facebook app since July 2021, said the introduction of the “discovery engine” strategy is just the beginning of a larger shift for the platform, as Facebook works to forge a path to continued growth and relevance over the next two decades.

    “For the last almost 20 years … we’ve been really known for friends and family, but over the next 20 years, what we’re really working toward is being known for social discovery,” he said. “It’s going to be about helping you connect with the people that you know, the people that you want to know and the people that you should know.”

    While Facebook and Instagram have struggled in their attempts to keep pace with TikTok, including through copycat features like Reels, Alison argues Facebook has a leg up on TikTok thanks to its roots in helping people connect with their networks.

    For some creators, for example, Facebook has become a place to create groups of fans and hold conversations beyond the content they share to Instagram and TikTok, Alison said. “I think it’s helping them get closer to their fans on Facebook in a way they can’t do on other platforms.”

    As Facebook plots its evolution, it will have to contend with what Zuckerberg has called the company’s “year of efficiency,” an effort to cut costs after a broader reckoning in the tech industry and investor skepticism around its pricey plan to center its business model around the future version of the internet it calls the metaverse.

    “One of the things that we are embracing with the year of efficiency is prioritization and, frankly, just focusing more effort on some of our bigger bets,” Alison said. The platform has over the past year shuttered some smaller efforts, such as its Bulletin newsletter subscription service, in favor of investing in key areas like AI. “That’s a lot of the culture that we’re kind of instituting across Meta is just like, how do we do fewer things better? And how do we do them, sometimes, more quickly? Efficiency is not just about cost savings.”

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  • CNBC Daily Open: The Nasdaq popped last week. But tech might be in trouble

    CNBC Daily Open: The Nasdaq popped last week. But tech might be in trouble

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    People walk near the Google offices on July 04, 2022 in New York City.

    John Smith | View Press | 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.

    The Nasdaq outpaced other indexes last week. But not all is rosy in tech.

    What you need to know today

    • Bard, Google’s artificial intelligence engine, is “not search,” Jack Krawczyk, the product lead for Bard told Google employees. Bard’s magic, instead, is more a “creative companion.” Employees told CNBC they’re confused by Google’s sudden pivot.
    • PRO This week, Federal Reserve Chair Jerome Powell will speak about the economy before Senate committees, and the February employment report will come out. Economists expect one of those to be a major market mover; the other, not so much.

    The bottom line

    Helped by Fed official Raphael Bostic’s dovish comments and a retreat in Treasury yields, U.S. stocks managed to shrug off their pessimism and rallied to end the week in the green.

    The Dow Jones Industrial Average rose 1.17%, giving it a 1.75% weekly gain that broke its four-week losing streak. The S&P 500 gained 1.61%, a 1.9% weekly increase on the week. The tech-heavy Nasdaq Composite climbed 1.97%, ending the week 2.58% higher. That makes two straight months that the Nasdaq has outpaced the other indexes.

    Not that all is rosy in the tech industry. Amazon stopped building “HQ2.” Meanwhile, Meta’s throwing more money at its loss-incurring Reality Labs segment. The firm slashed the cost of its virtual reality headsets — by up to $500 on its higher-end Meta Quest Pro — in an attempt, perhaps, to boost sales.

    Not all is well in the much-vaunted realm of the artificial intelligence chatbots, either. Google abruptly pivoted from its search-first strategy to position Bard as more of a companion to “explore your curiosity,” Krawcyzk told employees, which left them scratching their heads.

    Maybe it’s just really hard to integrate unpredictable AI chatbots with something as fact-based as web search. Recall the fiasco surrounding Microsoft’s AI chatbot Bing, which threatened users and professed its love to them. (To Bing’s credit, that’s remarkably human behavior.)

    Despite the Nasdaq’s stellar showing so far this year, then, it remains to be seen if the promises of tech match reality — and translate into further gains for the index. Companies should be careful not to dither too long: In today’s high interest rate environment, investors don’t have as much patience as they did a few years ago.

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

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  • Meta announces big price cuts for its VR headsets

    Meta announces big price cuts for its VR headsets

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    Meta will slash the prices of its Quest 2 and high-end Quest Pro headsets, the company announced Friday.

    The price of the 256GB Meta Quest 2 will drop from $499.99 to $429.99, while the price of the higher-end Meta Quest Pro will be slashed to $999.99 from $1,499.99.

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    Meta lost $13.7 billion on its Reality Labs segment in 2022. That’s the business unit responsible for building the company’s ambitious metaverse technologies. Reality Labs generated revenue of $727 million in the fourth quarter, and $2.16 billion for all of 2022 — a decline from $2.27 billion in 2021 — including sales of Quest headsets.

    The Meta’s Quest Pro headset which according to the company has outward-facing cameras that capture the user’s physical environment in full color and enable the overlay of virtual elements like 3D models, drawings and screens, is seen in this undated handout picture.

    Meta | via Reuters

    The Meta Quest Pro was launched in October, but its high price put it out of reach for most consumers. And there didn’t seem to be a clear professional use case either. The lower price could make it more attractive to both audiences.

    “Our goal has always been to create hardware that’s affordable for as many people as possible to take advantage of all that VR has to offer,” the company said in a release. The price change will begin rolling out on March 5 for the Meta Quest 2.

    U.S. and Canadian buyers will also see the Quest Pro’s new price on March 5. Its price will drop for the rest of the world on March 15.

    CNBC’s Ari Levy contributed to this report.

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  • Pro Picks: Watch all of Friday’s big stock calls on CNBC

    Pro Picks: Watch all of Friday’s big stock calls on CNBC

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    A recap of Friday's best stock picks on CNBC.

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  • Facebook revamps controversial content moderation process for VIPs | CNN Business

    Facebook revamps controversial content moderation process for VIPs | CNN Business

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    New York
    CNN
     — 

    Facebook-parent Meta on Friday announced a revamp of its “cross-check” moderation system after facing criticism for giving VIPs special treatment by applying different review processes for VIP posts versus those from regular users.

    But Meta stopped short of adopting all the recommended changes that had previously been put forward by its own Oversight Board, including a suggestion to publicly identify which high-profile accounts qualify for the program.

    The cross-check program came under fire in November 2021 after a report from the Wall Street Journal indicated that the system shielded some VIP users — such as politicians, celebrities, journalists and Meta business partners like advertisers — from the company’s normal content moderation process, in some cases allowing them to post rule-violating content without consequences.

    As of 2020, the program had ballooned to include 5.8 million users, the Journal reported. Meta’s Oversight Board said in the wake of the report that Facebook had failed to provide it with crucial details about the system. At the time, Meta said that criticism of the system was fair, but that cross-check was created in order to improve the accuracy of moderation on content that “could require more understanding.”

    Meta’s Oversight Board in a December policy recommendation called out the program for being set up to “satisfy business concerns” and said it risked doing harm to everyday users. The board — an entity financed by Meta but which says it operates independently — urged the company to “radically increase transparency” about the cross-check system and how it works.

    On Friday, Meta said it would implement in part or in full many of the more than two dozen recommendations the Oversight Board made for improving the program.

    Among the changes it has committed to make, Meta says it will aim to distinguish between accounts included in the enhanced review program for business versus human rights reasons, and detail those distinctions to the board and in the company’s transparency center. Meta will also refine its process for temporarily removing or hiding potentially harmful content while it’s pending additional review. And the company also said it would work to ensure that cross-check content reviewers have the appropriate language and regional expertise “whenever possible.”

    The company, however, declined to implement such recommendations as publicly marking the pages of state actors and political candidates, business partners, media actors and other public figures included in the cross-check program. The company said that such public identifiers could make those accounts “potential targets for bad actors.”

    “We are committed to maintaining transparency with the board and the public as we continue to execute on the commitments we are making,” regarding the cross-check program, Meta said in a policy statement.

    The Oversight Board said in a tweet Friday that the company’s proposed changes to the cross-check program “could render Meta’s approach to mistake prevention more fair, credible and legitimate, addressing the core critiques” in its December policy recommendation.

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  • Mark Zuckerberg looks to ‘turbocharge’ Meta’s AI tools after viral success of ChatGPT | CNN Business

    Mark Zuckerberg looks to ‘turbocharge’ Meta’s AI tools after viral success of ChatGPT | CNN Business

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    CNN
     — 

    Mark Zuckerberg said Meta is creating a new “top-level product group” to “turbocharge” the company’s work on AI tools, as it attempts to keep pace with a renewed AI arms race among Big Tech companies.

    In a Facebook post late Monday, Zuckerberg said the elite new group will initially be formed by pulling together teams across the company currently working on generative AI, the technology that underpins the viral AI chatbot, ChatGPT. This group will be “focused on building delightful experiences around this technology into all of our different products,” Zuckerberg said, starting with “creative and expressive tools.”

    “Over the longer term, we’ll focus on developing AI personas that can help people in a variety of ways,” Zuckerberg said. Those AI features may include new Instagram filters as well as chat tools in WhatsApp and Messenger, he said.

    The planned efforts come amid a heightened AI frenzy in the tech world, kicked off in late November when Microsoft-backed OpenAI released ChatGPT publicly. The tool quickly went viral for its ability to generate compelling, human-sounding responses to user prompts. Microsoft later announced it was incorporating the tech behind ChatGPT into its search engine Bing. A day before Microsoft’s announcement, Google unveiled its own AI-powered tool called Bard.

    Meta, by comparison, has been quiet so far. Yann LeCunn, Meta’s Chief AI scientist, has expressed some skepticism surrounding the ChatGPT hype. “It’s not a particularly big step towards, you know, more like human level intelligence,” LeCunn said in one interview late last month. “From the scientific point of view, ChatGPT is not a particularly interesting scientific advance,” he added.

    Generative AI tools are built on large language models that have been trained on vast troves of online data to create written and visual responses to user prompts. But these systems also have the potential to perpetuate biases and misinformation. Already, both Microsoft and Google’s AI tools have run into controversies for producing some inaccurate or uncanny responses.

    As with Microsoft and Google, there are some risks for Meta in embracing this technology. Last year, before the ChatGPT hype, Meta publicly released an AI-powered chatbot dubbed “BlenderBot 3.” It didn’t take long, however, for the chatbot to start making offensive comments.

    In his post Monday, Zuckerberg said: “We have a lot of foundational work to do before getting to the really futuristic experiences, but I’m excited about all of the new things we’ll build along the way.”

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  • Here’s why 7 Club stocks, including Nvidia and Meta, beat the market in January and February, defying this year’s seesaw start

    Here’s why 7 Club stocks, including Nvidia and Meta, beat the market in January and February, defying this year’s seesaw start

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    Jensen Huang, president and CEO of Nvidia, speaks during the company’s event at the 2019 Consumer Electronics Show in Las Vegas on Jan. 6, 2019.

    David Paul Morris | Bloomberg | Getty Images

    This year has, so far, been something of a Jekyll and Hyde market for equities.

    January’s strength was a welcome reprieve from the brutality that was 2022. February’s stumble has reminded us that sticky inflation remains a challenge for both the broader economy and stocks.

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  • CNBC Daily Open: Stocks rebound from their worst week this year — but analysts aren’t optimistic

    CNBC Daily Open: Stocks rebound from their worst week this year — but analysts aren’t optimistic

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    Traders work on the floor of the New York Stock Exchange (NYSE) on February 27, 2023 in New York City.

    Spencer Platt | 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.

    Stocks rebounded from last week’s lows but are still on track to end February in the red.

    What you need to know today

    • The U.K. and the EU signed a new trade deal. Known as the Windsor Framework, it remedies problems caused by the Northern Ireland Protocol, which mandates checks on goods that travel from Great Britain to Northern Ireland. Sterling jumped on the news.
    • Culture clashes may have contributed to China’s decision not to pick up the phone when the U.S. Department of Defense called after shooting down an alleged Chinese spy balloon, according to a researcher at a China-backed think tank.
    • Meta will create a new team that focuses on generative artificial intelligence models, CEO Mark Zuckerberg said on Monday. The team will build “creative and expressive” tools for the company’s products like Messenger and Instagram.
    • PRO The S&P 500 might fall back to a bear market in March, warned Mike Wilson, Morgan Stanley’s chief U.S. equity strategist. “With the equity market showing signs of exhaustion after the last Fed meeting, the S&P 500 is at critical technical support,” Wilson wrote.

    The bottom line

    Markets pulled back from their lows of last week and managed to stage a rebound. The Dow Jones Industrial Average inched up 0.22%, the S&P increased 0.31% and the Nasdaq Composite rose 0.63%.

    Investors felt they had slightly more breathing room after Treasury yields eased from their peaks on Friday, with the interest-rate-sensitive 2-year yield dipping from a 16-year high. As Ross Mayfield, investment strategy analyst at Baird, wrote, “the rapid shift in Fed funds expectations and the spike in short-term yields has been risk-off in the stock market, so some reprieve on rates today will likely boost equities.”

    Additionally, a decline in orders placed with manufacturers may have given investors a sign of slowing inflation — such signs are increasingly rare. Data released Monday showed that sales of durable goods like appliances, TVs and autos dropped 4.5% in January, worse than analysts’ expectations of a 3.6% fall. By contrast, orders increased 5.1% in December. Though a plunge in airplane orders contributed to much of the decline, orders were still down 5.1% when excluding defense.

    Earnings reports from major retailers like Target, Costco and Macy’s will be released this week and give an indication whether consumer spending will remain strong or start faltering. Regardless of what happens, analysts from JPMorgan’s Mislav Matejka to Morgan Stanley’s Mike Wilson aren’t too optimistic. It might be best to brace for a bumpy landing for the time being.

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

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  • New Meta platform aims to prevent sextortion of teens on Facebook and Instagram | CNN Business

    New Meta platform aims to prevent sextortion of teens on Facebook and Instagram | CNN Business

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    CNN
     — 

    Meta is taking steps to crack down on the spread of intimate images of teenagers on Facebook and Instagram.

    A new tool, called Take It Down, takes aim at a practice commonly referred to as “revenge porn,” where someone posts an explicit picture of an individual without their consent to publicly embarrass or cause them distress. The practice has skyrocketed in the last few years on social media, particularly among young boys.

    Take It Down, which is operated and run by the National Center for Missing and Exploited Children, will allow minors for the first time to anonymously attach a hash – or digital fingerprint – to intimate images or videos directly from their own devices, without having to upload them to the new platform. To create a hash of an explicit image, a teen can visit the website TakeItDown.NCMEC.org to install software onto their device. The anonymized number, not the image, will then be stored in a database linked to Meta so that if the photo is ever posted to Facebook or Instagram, it will be matched against the original, reviewed and potentially removed.

    “This issue has been incredibly important to Meta for a very, very long time because the damage done is quite severe in the context of teens or adults,” said Antigone Davis, Meta’s global safety director. “It can do damage to their reputation and familial relationships, and puts them in a very vulnerable position. It’s important that we find tools like this to help them regain control of what can be a very difficult and devastating situation.”

    The tool works for any image shared across Facebook and Instagram, including Messenger and direct messages, as long as the pictures are unencrypted.

    People under 18 years old can use Take It Down, and parents or trusted adults can also use the platform on behalf of a young person. The effort is fully funded by Meta and builds off a similar platform it launched in 2021 alongside more than 70 NGOs, called StopNCII, to prevent revenge porn among adults.

    Since 2016, NCMEC’s cyber tip line has received more than 250,000 reports of online enticement, including sextortion, and the number of those reports more than doubled between 2019 and 2019. In the last year, 79% of the offenders were seeking money to keep photos offline, according to the nonprofit. Many of these cases played out on social media.

    Meta’s efforts come nearly a year and a half after Davis was grilled by Senators about the impact its apps have on younger users, after an explosive report indicated the company was aware that Facebook-owned Instagram could have a “toxic” effect on teen girls. Although the company has rolled out a handful of new tools and protections since then, some experts say it has taken too long and more needs to be done.

    Meanwhile, President Biden demanded in his latest State of the Union address more transparency about tech companies’ algorithms and how they impact their young users’ mental health.

    In response, Davis told CNN that Meta “welcomes efforts to introduce standards for the industry on how to ensure that children can safely navigate and enjoy all that online services have to offer.”

    In the meantime, she said the company continues to double down on efforts to help protect its young users, particularly when it comes to keeping explicit photos off its site.

    “Sextortion is one of the biggest growing crimes we see at the National Center for Missing and Exploited Children,” said Gavin Portnoy, vice president of communications and branding at NCMEC. “We’re calling it the hidden pandemic, and nobody is really talking about it.”

    Portnoy said there’s also been an uptick in youth dying by suicide as a result of sextortion. “That is the driving force behind creating Take It Down, along with our partners,” he said. “It really gives survivors an opportunity to say, look, I’m not going to let you do this to me. I have the power over my images and my videos.”

    In addition to Meta’s platforms, OnlyFans and Pornhub’s parent company MindGeek are also adding this technology into their services.

    But limitations do exist. To get around the hashing technology, people can alter the original images, such as by cropping, adding emojis or doctoring them. Some changes, such as adding a filter to make the photo sepia or black and white, will still be flagged by the system. Meta recommends teens who have multiple copies of the image or edited versions make a hash for each one.

    “There’s no one panacea for the issue of sextortion or the issue of the non-consensual sharing of intimate images,” Davis said. “It really does take a holistic approach.”

    The company has rolled out a series of updates to help teens have an age-appropriate experience on its platforms, such as adding new supervision tools for parents, an age-verification technology and defaulting teens into the most private settings on Facebook and Instagram.

    This is not the first time a major tech company has poured resources into cracking down on explicit imagery of minors. In 2022, Apple abandoned its plans to launch a controversial tool that would check iPhones, iPads and iCloud photos for child sexual abuse material following backlash from critics who decried the feature’s potential privacy implications.

    “Children can be protected without companies combing through personal data, and we will continue working with governments, child advocates, and other companies to help protect young people, preserve their right to privacy, and make the internet a safer place for children and for us all,” the company said in a statement provided to Wired at the time.

    Davis did not comment on whether it’s expecting criticism for Meta’s approach, but noted “there were significant differences between the tool that Apple launched and the tool that NCMEC is launching today.” She emphasized Meta will not be checking for images on users phones.

    “I do welcome any member of the industry trying to invest in efforts to prevent this kind of terrible crime from happening on their apps,” she added.

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  • Covid’s ‘legacy of weirdness’: Layoffs spread, but some employers can’t hire fast enough

    Covid’s ‘legacy of weirdness’: Layoffs spread, but some employers can’t hire fast enough

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    A sign for hire is posted on the window of a Chipotle restaurant in New York, April 29, 2022.

    Shannon Stapleton | Reuters

    Job cuts are rising at some of the biggest U.S. companies, but others are still scrambling to hire workers, the result of wild swings in consumer priorities since the Covid pandemic began three years ago.

    Tech giants Meta, Amazon and Microsoft, along with companies ranging from Disney to Zoom, have announced job cuts over the past few weeks. In total, U.S.-based employers cut nearly 103,000 jobs in January, the most since September 2020, according to a report released earlier this month from outplacement firm Challenger, Gray & Christmas.

    Meanwhile, employers added 517,000 jobs last month, nearly three times the number analysts expected. This points to a labor market that’s still tight, particularly in service sectors that were hit hard earlier in the pandemic, such as restaurants and hotels.

    The dynamic is making it even harder to predict the path of the U.S. economy. Consumer spending has remained robust and surprised some economists, despite headwinds such as higher interest rates and persistent inflation.

    All of it is part of the Covid pandemic’s “legacy of weirdness,” said David Kelly, global chief strategist at J.P. Morgan Asset Management.

    The Bureau of Labor Statistics is scheduled to release its next nonfarm payroll on March 3.

    Some analysts and economists warn that weakness in some sectors, strains on household budgets, a drawdown on savings and high interest rates could further fan out job weakness in other sectors, especially if wages don’t keep pace with inflation.

    Wages for workers in the leisure and hospitality industry rose to $20.78 per hour in January from $19.42 a year earlier, according to the most recent data from the Bureau of Labor Statistics.

    “There’s a difference between saying the labor market is tight and the labor market is strong,” Kelly said.

    Many employers have faced challenges in attracting and retaining staff over the past few years, with challenges including workers’ child care needs and competing workplaces that might have better schedules and pay.

    With interest rates rising and inflation staying elevated, consumers could pull back spending and spark job losses or reduce hiring needs in otherwise thriving sectors.

    “When you lose a job you don’t just lose a job — there’s a multiplier effect,” said Aneta Markowska, chief economist at Jefferies.

    That means while there might be trouble in some tech companies, that could translate to lower spending on business travel, or if job loss rises significantly, it could prompt households to pull back sharply on spending on services and other goods.

    The big reset

    Some of the recent layoffs have come from companies that beefed up staffing over the course of the pandemic, when remote work and e-commerce were more central to consumer and company spending.

    Amazon last month announced 18,000 job cuts across the company. The Seattle-based company employed 1.54 million people at the end of last year, nearly double the number at the end of 2019, just before the pandemic, according to company filings.

    Microsoft said it’s cutting 10,000 jobs, about 5% of its workforce. The software giant had 221,000 employees as of the end of June last year, up from 144,000 before the pandemic.

    Tech “used to be a grow-at-all-costs sector, and it’s maturing a little bit,” said Michael Gapen, head of U.S. economic research at Bank of America Global Research.

    Other companies are still adding employees. Boeing, for example, is planning to hire 10,000 people this year, many of them in manufacturing and engineering. It will also cut around 2,000 corporate jobs, mostly in human resources and finance departments, through layoffs and attrition. The growth aims to help the aerospace giant ramp up output of new aircraft for a rebound in orders with large sales to airlines like United and Air India.

    Airlines and aerospace companies were devastated early in the pandemic when travel dried up and are now playing catch-up. Airlines are still scrambling for pilots, a shortage that has limited capacity, while demand for experiences such as travel and dining has surged.

    Chipotle is planning to hire 15,000 workers as it gears up for a busier spring season and to support its expansion.

    Holding on

    Businesses large and small are also finding they have to raise wages to attract and retain workers. Industries that fell out of favor with consumers and other businesses, such as restaurants and aerospace, are rebuilding workforces after shedding workers. Walmart said it would raise minimum pay for store employees to $14 an hour to attract and retain workers.

    The Miner’s Hotel in Butte, Montana, raised hourly pay for housekeepers by $1.50 to $12.50 for that position in the last six weeks because of a high turnover rate, Cassidy Smith, its general manager.

    Airports and concessionaires have also been racing to hire workers in the travel rebound. Phoenix Sky Harbor International Airport has been holding monthly job fairs and offers some staff child-care scholarships to help hiring.

    Austin-Bergstrom International Airport, where schedules by seats this quarter has grown 48% from the same period of 2019, has launched a number of initiatives, such as $1,000 referral bonuses, and signing and retention incentives for referred staff.

    The airport also raised hourly wages for airport facilities representatives from $16.47 in 2022 to $20.68 in 2023.

    “Austin has a high cost of living,” said Kevin Russell, the airport’s deputy chief of talent.

    He said employee retention has improved.

    Electricians, plumbers and heating-and-air conditioning technicians in particular, however, have been difficult to retain because they can work at other places that aren’t 24/7 and at at higher pay, he said.

    Many companies’ new workers need to be trained, a time-consuming element for some industries to ramp back up, even if it’s gotten easier to attract new employees.

    “Hiring is not a constraint anymore,” Boeing CEO Dave Calhoun said on an earnings call in January. “People are able to hire the people they need. It’s all about the training and ultimately getting them ready to do the sophisticated work that we demand.”

    — CNBC’s Amelia Lucas contributed to this article.

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  • Megan Fox criticizes ‘baseless’ rumors about relationship in return to Instagram | CNN

    Megan Fox criticizes ‘baseless’ rumors about relationship in return to Instagram | CNN

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    CNN
     — 

    Megan Fox returned to Instagram on Sunday to address rumors about her relationship with fiancé Machine Gun Kelly.

    “There has been no third party interference in this relationship of any kind,” Fox’s Instagram post read. “That includes, but is not limited to… actual humans, DMs, AI boys or succubus demons.”

    Fox and Kelly announced their engagement in January 2022.

    The actress drew the attention of tabloids last week after she deactivated her Instagram account.

    The move prompted speculation that Fox’s actions – including a February 12 photo and caption that referenced Beyoncé’s biting ballad about suspected infidelity “Pray You Catch Me” – was related to her relationship with Kelly.

    Fox dismissed the rumors as “random baseless news stories” in her statement this weekend, and asked that those reading to leave “innocent people alone now.”

    Kelly has not addressed the situation.

    Both are next set to make guest appearances on the upcoming third season of the FX series, “Dave.”

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  • ‘Fire-breathing demon’ dog Ralphie returned to Niagara shelter | CNN

    ‘Fire-breathing demon’ dog Ralphie returned to Niagara shelter | CNN

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    CNN
     — 

    Will a fourth adoption be the charm for this seemingly unadoptable pup?

    Ralphie, a New York shelter’s adorable “jerk” dog, has been returned to the shelter again after his most recent (and unsuccessful) adoption.

    “Ralphie proved to be more than she could handle,” the shelter explained in an update posted to Facebook on Tuesday after the woman who adopted the French bulldog brought him back.

    News of the canine menace went viral in late January after the Niagara SPCA posted an eye-catching ad for potential adopters. Shelter employees described Ralphie as “a terror in a somewhat small package.”

    “Everything belongs to him. If you dare test his ability to possess THE things, wrath will ensue,” they wrote at the time. “If you show a moment of weakness, prepare to be exploited.”

    This is Ralphie’s third unsuccessful adoption, according to the shelter. The pup’s first family rehomed him after training was unsuccessful. His second family surrendered him to the shelter after he “annoyed” their older dog.

    “What they actually meant was: Ralphie is a fire-breathing demon and will eat our dog, but hey, he’s only 26lbs,” reads a Facebook post from the Niagara SPCA.

    The ornery pup is now enrolled in an intensive six-week boarding and training program that will start on February 20, according to the Tuesday Facebook post. The shelter said that they would start vetting prospective adopters immediately and that the ideal adopter would work with the trainer while Ralphie’s at the residential training program.

    The shelter noted that those who believe “that all Ralphie needs is love” should not apply to adopt the fearsome pup. “He will totally exploit that,” they wrote.

    Neither should families with children or other pets, as he has a history of biting.

    Dog lovers who aren’t intimidated by Ralphie’s formidable reputation can apply to adopt him with a letter of interest and “dog experience ‘resume,’” according to the Facebook post.

    The shelter is also raising money to cover the $6,000 tuition for the training program.

    “No one likes that it didn’t work out for Ralphie, but he will receive the training he needs,” shelter employees added in the post.

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