July 27, 2018
Would you use a product created by this man? I certainly would. Until he banned me and all my frens!
Facebook had the biggest stock loss of any company in all of history earlier this week.
@jack can’t beat that. Probably, no company ever will.
But @jack is giving it the old college try.
@jack’s 17% is actually only 2% less than Zuck’s one day 19% drop. But Facebook is a much more valuable company, so their loss was $120 billion.
A fall in user numbers of public messaging platform, Twitter, sent its shares down 17%.
The fall, in pre-market trading, came despite record quarterly profits.
The number of people using Twitter on a monthly basis was down by one million on the previous quarter at 335 million.
During the quarter the company had been actively purging fake accounts that manipulate the platform and Twitter boss Jack Dorsey said the results reflected these changes.
The company said it expected monthly user numbers to continue to fall in the third quarter.
Revenues from advertising rose, delivering Twitter’s third profitable quarter in a row.
“Our second quarter results reflect the work we’re doing to ensure more people get value from Twitter every day,” he said.
“We want people to feel safe freely expressing themselves and have launched new tools to address problem behaviours that distort and distract from the public conversation.”
Tech firms have been under pressure in several countries to be stricter over abusive content and misinformation or “fake news” as well as political influence and protection of personal data.
I wasn’t even going to blame censorship for this – but @jack himself is blaming it!
Or rather, reverse-blaming.
Or however you would say that.
He’s telling Jews “please don’t sink my company, I’m going to be a good goy and get rid of the rest of the bad goys, scout’s honor!”
I do think part of the problem is the censorship. It has spiraled out of control. Censorship is always a slippery slope, because it is really hard to try to explain the difference between a neon-nazi and a proud boy to the ADL.
When you start censoring, this has effects that you can’t really measure or predict. For instance, the leftists loved arguing with the Alt-Right frogmen back in the day. They were logging in, interacting with the site, viewing and possibly clicking ads, in order to argue with neon-frogmen. The whole concept of the site was to be the public square, and you’re not the public square if you’re banning the most interesting parts of the public.
Because we are the most interesting – even to those that hate us. Especially to those that hate us. Crisis management was done very poorly. What power does the ADL have, other than what you give it?
What we do know is that once you invite the devil into your house, he doesn’t leave. When you caved in and banned Chuck Johnson, MILO and yours truly for protected speech back in 2015, Twitter no longer had the “it isn’t our job to be the moral regulators of speech” argument. And once you decide you are going to be the moral regulator of speech, you necessarily imply that you endorse all speech you don’t censor as morally acceptable.
As soon as you censor one person for legal speech, you go from having no responsibility over the userbase of your platform to having total responsibility for each and every user.
I think Trump’s Tweet yesterday about censorship had something to do with this collapse.
Twitter “SHADOW BANNING” prominent Republicans. Not good. We will look into this discriminatory and illegal practice at once! Many complaints.
— Donald J. Trump (@realDonaldTrump) July 26, 2018
And obviously Facebook’s collapse had something to do with it.
But I was gonna mainly just blame it on the fact that these companies are being replaced. There is a cycle of social media. Google will always exist – and YouTube – but everything else can and presumably will pass.
Facebook and Twitter are monopolies. And they rode on that. But you can have a monopoly on the steam engine and when someone comes along with diesel it won’t be much good to you. That’s an imperfect analogy, but the fact is that the way people use the internet is in a constant state of change, and there are too many different factors to consider to really predict where things are going.
Theoretically, a monopoly doesn’t have to be run very well. That is an economic reality that caused capitalism to develop anti-trust systems to create competition and thus better products.
The concept of anti-trust laws was pretty much abolished under Ronald Reagan. Microsoft was charged by the Justice Department in 2001 with a relatively petty case regarding packaging their browser with their operating system, but that is pretty much the only time this has come up in the tech industry.
So these companies didn’t feel they had any obligation to maintain an attractive product, or run the business in a way that respected users or society itself. And that’s a big part of the disaster. I think they could have maintained longer if they would have run their companies better.
Right now, Snapchat is being blamed for young people not using Facebook.
I think Snapchat is a transition to something different, where the idea of just having a profile that the whole world sees and everyone you’ve ever known can contact you on will no longer be something that people are looking for.
I also think the novelty of constant inane digital communication is wearing off. I think the whole addiction to the smartphones might be a phase, and people will move more back into physical reality, relying on phones only to send messages, check the internet, read the news in the morning, etc.
The whole age of “hey what are you doing nothing what are you doing here’s a picture of my food oh yes here’s a picture of the cat haha look at this picture of my face” may be closing up. I see people in public using their phones while in the company of other people much less than they did a year or two ago.
But I don’t really know. I’m not a very stable genius. I think these companies would be doing better if they’d hired me as a consultant. But the development of society, and the role that technology is playing in that, has so many different factors, that no one could ever predict what kind of internet experience people will be looking for in ten years.
I Don’t Think the Market is Correct, But It Shall Correct
Regardless of the 20ish% stock losses of Facebook and Twitter, these companies are still going to remain very relevant for the foreseeable future.
Twitter will remain, possibly forever, the main place for public figures to make public statements on their iPhones. I think Trump going in to regulate it and force them to stop banning people for their political views will help the company. Right now people just kind of hate it.
Facebook has so many users, it’s not just going to disappear. But I do think fewer and fewer teenagers will be making accounts on there at all. Right now, fewer than half of American 12 to 17-year-olds use it. It’s always been banned in China and they have their own version, the Russian-speaking world has their own version, there is no new market that is going to open up. I think the collapse there has virtually nothing to do with the Cambridge Analytica scandal, and is instead due to the fact that it was just massively overpriced due to old people assuming it was a monopoly that would last forever.
These people just don’t understand the cyber.
The stock market has always been horrible at valuing anything related to technology.
I think Apple stock is right now nearly two times as high as it should be.
I finally beat the shit out of my iPhone 6 so bad I needed a new one.
I bought the iPhone 8, and it is virtually indistinguishable in terms of functionality. My hope is that it will last longer than the 3.5 years my iPhone 6 lasted.
And look – I am working on the computer. I do a lot of work on my phone. These are business phones, and I’ve every reason to buy a new phone when I need one. I just simply did not need a new one for the last three years, because there was no new functionality being offered.
Yet the Rim Cook plan is to sell infinity iPhones forever. That is what he is telling his shareholders – that people are just going to keep replacing their phones with phones that do the same thing. For no reason other than some minor gimmick.
Using this new iPhone 8, I’m wishing I would have saved the money and just bought another 6. I thought it would at least offer something that would be slightly better, after 3 years of development – but there’s nothing. It’s the same phone.
And other things that people used to be buying on the reg are peaked as well. Televisions are past peak. Laptops are for the most part. I mean, there is only so far any of this stuff can go. There are only so many uses of electronics.
Basically, I think we’re at the beginning of a massive tech crash. Something akin to the dot com bubble.
The only thing unscathed will be video games.
I think that this will dovetail with regulation, where the unregulated nature of the industry will be held to blame for the collapse (instead of the actual causes, which I outlined above). They are already blaming Cambridge for Facebook, blaming not enough censorship for Twitter.
And that’s fine.
Real reasons aren’t important.
What is important is that Donald Trump starts regulating the tech industry to protect our free speech rights.