Facebook...What Privacy Issues???
Despite the worst scandal (Cambridge Analytica scandal) in its history, despite losing a significant number of daily users in the United States and Canada, despite an overall decline in the amount of time spent on the its platform and despite Mark Zuckerberg’s testimony in Washington DC recently, investors awarded Facebook when they announced earnings Wednesday. Facebook posted gains of 63% in profits, and 49% in revenue for the 1st quarter 2018 vs. the 1st quarter 2017. As a result, the stock jumped 6% on Thursday, the biggest one day jump in two years. Apparently, Wall Street doesn’t care about your privacy issues.
Anyone that felt violated in recent weeks, must remain patient, just like when a python kills its prey by squeezing it until there is no more breath left. Wall Street may not fear you, but indirectly Facebook fears regulation.
During the testimony in Washington DC, there were discussions surrounding the General Data Protection Regulation (GDPR) laws. Well, they become enforceable starting May 25th. Under the terms of GDPR, organizations will have to ensure that personal data is collected within a defined set of rather strict conditions. Additionally, these organizations are responsible for who collects and manages the data, as well as ensuring it isn’t misused or exploited. If companies fail to respect the rights of data owners (that’s us), they’ll be subject to penalties that could exceed €20 million ($24.3 million USD). Also, the rules apply to any organization that does business with customers or other businesses inside the EU.
In the US, regulation is just a matter of time, but the real difference maker is you and the blockchain technology in the form of Steemit. Make no mistake, Facebook is still considered a growth company on Wall Street. Wall Street always pays a premium price for growth companies because of the future cash flow.
And each users is bringing in more and more ad revenue.
However, what if we decided to age Facebook and make it a maturing company by migrating away from Facebook to Steemit? What if 500 million users left Facebook over the next 5 years?
That would amount to a drop of roughly 22% in ad revenue or approximately $2.6 billion dollars.
What if out of those 500 million Facebook users that left, 50 million joined Steemit?
Remember, Wall Street discounts future cash flow. Growth on the Facebook platform is already decelerating, so once Wall Street starts connecting the dots, lets see who has the last laugh.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
I'm so with you on this. I have been saying for over a year that FB is on the way out. Steemit is not the future, it is the now. Thanks for sharing and have a great day.
I think the best of Steemit is yet to come, you have a great day as well.
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