Facebook is officially in a bear market, with s hares at their lowest levels since July 2017. The FTC confirmed an investigation into the company’s privacy policies amid the unfolding Cambridge Analytica scandal on Monday, sending shares reeling. Facebook is officially in bear market territory, down more than 20% from recent highs, as the FTC confirms a probe into the Cambridge Analytica data privacy scandal. Shares are down more than 6% on Monday to an intraday low of $US149, the lowest the stock has been since July 7, 2017. The stock has gotten crushed in the past week by news of a massive data scandal involving millions of users’ account data being accessed by political research firm Cambridge Analytica, a subsequent FTC probe into the company’s data information sharing, and ultimately, long-term concerns over user growth and government regulation. Facebook shares hit a peak of $US195.32 on February 1, but have since fallen off, at first because of a broader … [Read more...] about Facebook is officially in a bear market as the FTC confirms a probe into the Cambridge Analytica data scandal
Markets
MORGAN STANLEY: Here’s how Microsoft can reach a $1 trillion market cap
Microsoft‘s cloud business could double in the the next three years, helping propel the company to a $1 trillion market cap, Morgan Stanley said Monday. The company is currently fourth in terms of market value, behind Apple, Alphabet, and Amazon. The world’s largest companies are locked in an arms race to be the first to reach a $1 trillion market value, and Microsoft could be the winner, according to Morgan Stanley. Microsoft’s cloud businesses could more than double in the next few years, the bank said in a note to clients on Monday. That growing unit, coupled with improving margins, could propel the stock to a $1 trillion market cap in the next year. “With Public Cloud adoption expected to grow from 21% of workloads today to 44% in the next three years, Microsoft looks poised to maintain a dominant position in a public cloud market we expect to more than double in size to >$250 billion dollars,” … [Read more...] about MORGAN STANLEY: Here’s how Microsoft can reach a $1 trillion market cap
2 reasons why the market is fundamentally misjudging the Bank of England’s next step
caption Bank of England Governor Mark Carney has a lot to think about. source REUTERS/Peter Macdiarmid The Bank of England hinted that it is set to hike interest rates in May, but there are signs it could change its mind. A rate hike in May is, in the words of bond market guru Mohamed El-Erian “far from a done deal.” The wording of the committee’s statement is far less explicit than that in the Bank of England’s statement in September last year, the meeting prior to its November rate hike. This suggests some reticence to hike on the bank’s part. The make up of the vote of bank’s Monetary Policy Committee also raises concerns. LONDON – As expected, the Bank of England left interest rates on hold on Thursday, but signalled – in the eyes of most commentators and many in the markets – that a rate hike at the next … [Read more...] about 2 reasons why the market is fundamentally misjudging the Bank of England’s next step
Here all the terrible things that happened while the stock market increased 1,100 fold
The punditry world is usually split into two groups: optimists and pessimists. “Are you bullish or bearish?” People want a binary answer. There’s not enough attention paid to a third group: Optimists who regularly expect terrible things to occur. It seems counterintuitive, but if you look at history, it’s by far the most rational stance. The S&P 500 rose 1,100-fold over the last 70 years, including dividends. But look what happened during that period: May 1946 to May 1947. Stocks decline 28.4%. A surge of soldiers return from World War II, and factories across America return to normal operations after years of building war supplies. This disrupts the economy as the entire world figures out what to do next. Real GDP declines 13% as wartime spending tapers off. A general fear that the economy will fall back into the Great Depression worries economists and investors. June 1948 to June 1949. Stocks decline 20.6%. A world still trying to figure out what … [Read more...] about Here all the terrible things that happened while the stock market increased 1,100 fold
3 Australian small business owners share how they tapped into China’s huge online shopping market
According to recent research, increased connectivity and strong international demand for Aussie products has fuelled a new breed of local small and medium enterprises (SMEs) who are operating globally while remaining in their local office – going Glocal. To help encourage burgeoning SME’s to go Glocal, nbn launched new initiatives to help businesses tap into global markets through a series of free webinars, and with the winners receiving one-on-one mentoring with Chinese business expansion experts. To find out more about nbn for business, please visit www.nbnco.com.au/connect-business today. As Chinese demand for Australian products shows no signs of slowing, small Australian businesses are looking at how they can better tap into this huge international market. But there are a number of key factors that determine whether a small business is capable of making the jump from local to global. One of the most important issues is connectivity and the ability to service … [Read more...] about 3 Australian small business owners share how they tapped into China’s huge online shopping market