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Oh ron holy smokes guys we’re stocks did not look too good today the dow was down about one point three five percent the s&p 500 down about one point four two percent and the nasdaq was down close to two percent we guys discuss all this aw ton of stocks made downward moves we got to discuss facebook here we got to discuss one of my stocks that went down more than
The market did today first off let’s start off with this facebook story this has been the story that’s kind of dominated today so facebook that went down close to 7% today over $12.50 a share facebook was down it’s still somewhat close to us 52 week high of 195 dollars but it did definitely drop down so there’s a bunch of you know stuff out there a bad publicity in
Regards to facebook today and there’s been for the last few weeks so facebook is facing an existential crisis the cambridge analytical scandal has done immersed damage to the brand sources across the company believe it will now take a herculean effort to restore public trust in facebook’s commitment to privacy and data protection they said outsiders or observers
Think regulation has suddenly become more likely and yet ceo mark zuckerberg seems to be missing in action so a university of cambridge professor accessed the data of more than 50 million facebook users simply by creating a survey filed by 270,000 people facebook provided the the guy with data of anyone who took the survey as well as their friends data in a statement
Facebook said kogan gained access to this information in a legitimate way and through proper channels that govern all developers on facebook at that time the one rule cogan violated according to facebook was passing the users data to third parties including cambridge analytic oh a political data firm founded by former trump aide steve bannon and conservative donor
Robert mercer and that’s probably why this is such a big story and my personal opinion is because it’s something in relation to trump and you know helped trump get elected things like that that’s probably a big part of why it’s such a big you know story and whatnot so obviously we saw google make a big downward we saw a snapchat make a big downward move but what do
These companies have in common they’re advertising companies pandor made a big time downward move so let’s talk about this a facebook and i want to kind of explain this and why it’s not in my opinion as big of a deal as the media is making out to be let’s just put it that way and why you know someone that’s a hardcore user if the facebook is probably not going to be
Like oh i’m not using facebook anymore i think facebook has had some weakness in facebook the platform for a while instagram i think has helped carry the company but i think this is not gonna be nearly as big of effect so basically you have facebook over here okay if you don’t understand how facebook makes money i’m gonna explain it exactly how they make money to
You right now okay it’s pretty simple facebook’s here and you’re right here okay and you create your facebook account all right and you go ahead and you put in a bunch of data you put in a bunch of information that once you put in that information it’s now facebook’s information okay so you say oh i’m up i’m a male okay i’m 35 years old i live in new jersey i like
I don’t know budweiser okay i like drinking budweiser you know i like beer or whatnot and you entered all this information and you like the you know watching football on tv and blah blah blah and you enter in all this information over time into facebook and you like all these different things and facebook has all this data okay facebook has all this data and this
Is really how facebook makes its money okay from the data it that’s what’s important all of this data you enter in your facebook profile and it’s not just facebook it’s really almost for every social network or things like that right they get all this information and they store this information and then all of a sudden you got this guy over here who’s you know a
Craft beer brewery and he says okay well guess what i need to do some advertising here on facebook okay so what i’m looking for facebook’s i’m looking for males 30 to 40 years old okay males and i want to run some some beer ads here on facebook that are gonna show up and i want to target people that have like bud and i want to target people that have like football
Guess what there’s gonna be a lot of people and maybe they’re even in new jersey okay there’s gonna be a lot of people that i fit that criteria and so these guys they give their money to facebook to run ads to hopefully increase brand awareness of their craft beer okay and that is facebook in a nutshell on how they make money they have all this data they give it
To these guys over here so they can go ahead and advertise over here all right now this situation was basically someone got a bunch of survey through you know a bunch of data information through a survey and then they passed on that knowledge to a third party okay this has probably been going on for a very long time there’s a lot of shady stuff that goes on with
Facebook advertising and that’s just facebook advertising it’s a lot of different companies a lot of shady stuff this one really comes out big because it involves president trump okay let’s be honest that’s why it’s really making the big news if it was just some company that passed off to another company some third-party information this would be like back page
News story stuff but because it involves steve ben and obviously donald trump it blows up and do a big big story all right now facebook i call facebook basically google on steroids okay it’s google on steroids because we remember they get all this information google how google makes money is you go ahead and you search something okay so you go ahead and you search
You know cars for sale in new jersey holy smokes i spelled sale wrong and new jersey okay so you go ahead and search that into google right this is how google works and then google basically has adwords and whatnot that people put in and they’ll try to compete for terms like that so google absolutely has a bunch of data on you okay and they store all that data as
Well in their in their search boxes and whatnot and they they hold all that data so you enter all this information and then google ends up running ads to you based upon that information but facebook is google on steroids because they literally have exact information on you they know for a fact your mail because you put that in there they know for a fact you’re 35
Years old because you put that in there they know for a fact you’re in your live in new jersey because all your posts are from new jersey that you always do and you tag those places right your favorite restaurant you go and you tag it oh it’s new jersey and then you put it in there they know you like budweiser because you specifically you know went to the budweiser
Page and like the budweiser page your song and leg i like that they know you specifically like nfl football because you liked nfl football and then your your comments have to do with nfl football they read through all that information they’ll not like a person like usually it’s like computers and whatnot so literally facebook is google on steroids okay google
Could only get your information to a certain extent okay this can get exact information guys and that’s what i was always made facebook scary but at the same time do i think it’s a a situation where people that really use facebook all the time are gonna be like oh i’m not gonna use facebook anymore i don’t think so because this has been known for a long time guys
This has been known for a long time there’s this way that the way it is i think people that still love you know love facebook and use all time are probably still going to use it just as much i think people that like myself that don’t use facebook at all probably still aren’t gonna be really using facebook alright so that covers the kind of the facebook situation
There obviously we saw all you know bunch of advertisers get hit so i want to talk about one of my stocks in particular so it was crazy eli actually somehow managed to go up today my biggest investment but my second biggest investment cirrus logic that one went down close to 5% today and that one was a big downward mover and there was no news in relation to that
Stock and the reason i think that one moved down today and by the way i did buy some more shares in cirrus logic today the reason i believe that one probably moved down is because there’s some information that came out about apple might switch a glass producer in you know like and stop using samsung which i think they’re using for glass and lg and any time apples
You know comes up with you know they might switch suppliers a company like cirrus logic gets hammered because they’re so reliant on apple so this is just kind of you know the situation that you know the good and the bad that comes with cirrus logic cirrus logic has a ton of growth potential over the next few years but at the same time because they’re so heavily
Reliant on apple anytime any of these lowly little stories come out even though it has nothing to do with cirrus object it’s just cirrus logic might switch suppliers of glass and they might start producing their own glass anytime anything like that comes out and in in you know a company like cirrus logic is very relying on apple it’s going to make the stock move
Downward and that’s was kind of the one of the risks of being in cirrus logic and something i just kind of have to live with with that particular stock but you know i believed in it for the long term and that’s why i’ve been loading up on stairs that’s why it’s my second biggest investment but i will see how that goes so let me know guys like what do you think about
The markets today what do you think about you know downward moves were you buying any shares out there today were you making a moves what do you think about the facebook story what do you think about facebook in general i would kind of love to know your guy’s opinion down there in that comment section if you would like to share it anyways thank you for watching guys and have a great day
Transcribed from video
FACEBOOK STOCK DOWN BIG on (Cambridge Analytica Scandal) By Financial Education
