Q: How do you know your business is an absolute gold mine?
A: When you try to persuade the government to make it harder for your customers to give you money.
Usually, businesses lobby congress to reduce regulations that inhibit their company’s growth. Or, they lobby the government to enforce regulations against competitors in an effort to increase their revenue and profits. Just about every multinational corporation does that…except for Facebook.
In a head-scratching statement, Facebook founder and CEO Mark Zuckerberg announced that he is doing the exact opposite. On the heels of an announcement that Russian-linked ad campaigns have reached approximately 126 million Americans during the 2016 election, Bloomberg reported that Zuckerberg is “dead serious” about preventing foreign influence in the form of ads or ‘fake news’ in any future U.S elections. Zuckerberg also announced that Facebook is working with Congress on instituting political ad-transparency legislation.
Did you catch that?
Mark Zuckerberg is working with Washington to make it harder for wealthy foreign governments to pour millions into Facebook’s ad campaigns just to ensure that there won’t be any foreign involvement in future US elections.
But that’s not all.
Despite an excellent Q3 earnings report, Zuckerberg told reporters not to expect such high-flying numbers in the near future. That’s because Facebook is “investing so much in security that it will impact our (FB’s) profitability”. This hiring spree will involve an additional 10,000 more employees. In fact, this quarter alone, the social network saw 2,500 new employees alone. Executives are calling it Facebook’s largest hiring quarter ever.
So why is FB investing in “so much in security”?
Facebook is investing so much into security for the same reason they’re lobbying congress- as a reaction to the ‘abuse’ it suffered during the 2016 elections. The new security investment will be used to screen ‘fake news’, disinformation, and foreign government attempts to sway public opinion. Elaborating on his decision, Zuckerberg added that “Protecting our community is more important than maximizing our profits”.
Just in case this hasn’t sunk in yet, Facebook has a whole slew of foreign governments begging to dump millions of advertising dollars into Zuckerberg’s pockets. And not only is Zuckerberg not accepting their offer with open arms, he is actively lobbying the US government to prevent them from doing so. And if that wasn’t enough, Zuckerberg has decided to eat into his own company’s profits to prevent even more ad-investment that would make the company that much wealthier.
So either Mark Zuckerberg is a diehard patriot who will sacrifice his own company he founded to protect America’s domestic interests or he’s a horrible businessman who cares more about politics than money. Given Facebook’s success, it’s hard to imagine that he’s the latter. Or, perhaps, Mark Zuckerberg has so much money that he can allow himself to be both.
Do you believe this breaking announcement will affect Facebook’s value?
At iFOREX, you can trade Facebook as a CFD as well as hundreds of other CFD instruments.