Facebook Inc (FB) To Be Reviewed By FTC

Well, well, well. This isn't a surprise. Whenever a stock goes up rather quickly people panic, option traders that is, particularly on puts. My opinion is that these high powered brokers have their media connections and when these media connections are given loads of cash which by publishing an article can influence the stock price. Let's see how people conceive this.

September 12, 2013

By Michelle Jones

The FTC is taking letters it received regarding Facebook Inc (FB)’s privacy practices seriously. It has reportedly opened an investigation into the changes the social network wants to make.

Facebook Inc (NASDAQ:FB) is in trouble for its privacy practices again, this time from the federal government again. According to regulators, the social network should have asked them about changes to the practices first before actually making them.

Do Facebook’s new policies violate earlier agreement?

The Federal Trade Commission announced on Wednesday that it will begin an investigation into the social network’s new privacy practices. Vidu Goel and Edward Wyatt of The New York Times report that the agency will be deciding whether those new practices violate the agreement Facebook Inc (NASDAQ:FB) made with regulators in 2011.

The agreement requires the company to get the consent of users before it exposes their private information to new groups or audiences. Earlier this month a group of privacy organizations sent a letter to the FTC claiming that the new practices violate that 2011 agreement. On Wednesday Sen. Edward J. Markey (D, Mass.) sent another letter to the FTC raising questions about the changes in practices and calling for an investigation.

Facebook didn’t seek regulatory approval

Facebook Inc (NASDAQ:FB)’s new policies state that users have to grant broad permission before the social network can use their personal information in advertising. But the FTC says the social network is subject to continual oversight by it because of the agreement they have. A spokesperson for the agency said Facebook never discussed the changes before announcing them.

Instead of asking whether the changes were within the realm of their agreement, the social network told the agency about the changes right before posting them on its website. According to Facebook, the new language does comply with the 2011 order from the FTC and also an order handed down earlier this year in connection with the settlement of a class action lawsuit. That suit dealt with the company’s use of users’ information in its Sponsored Stories ad campaign.

Facebook claims that even though it is changing the wording of its privacy practices, the policies don’t change its users’ rights over their personal data.

FACEBOOK to make you rich?

UPDATE: SEPT. 12, 2013 - I don't want to say I told you so, but the stock has gained over $7/share in about a month and a few days.

Current price 45.00 

Facebook and China

Today Facebook Inc (NASDAQ:FB) COO Sheryl Sandberg met with China’s internet regulator Cai Mingzhao. That meeting, which could be the beginning of a relationship between Facebook and the Asian giant, was one of the reasons for the push upward in price today. Facebook’s social network isbanned in China. As the world’s biggest market and one of the fastest growing groups of tech consumers, China is a target for Facebook investors.

Today’s meeting was likely not about opening China to Facebook Inc (NASDAQ:FB). It was probably about encouraging Chinese companies to advertise on Facebook. That revenue in and of itself could be extremely valuable to Facebook, but it needs China to relax its stand on Western social networks in order to make that happen.

If Facebook Inc (NASDAQ:FB) can develop some sort of relationship with the Chinese government, it is hoped that it might lead to some kind of limited presence for the company in the country. Facebook wants to get its foot in the door so that it can get into the country and when this happens, not if it happens,  prepare for early retirement.

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I will keep an eye out for this.

JULY 3O, 2013

Facebook Inc. (FB) rose to the highest price ($37.66) as of 1 pm today July 30th, 2013 since the day after its initial public offering.




The gain is a turnaround for Facebook, whose stock slumped as low as $17.73 in September after an IPO of $38 per share.

The stock jumped to the highest close since May 18, 2012 -- last Thursday and is still climbing. The shares have advanced 33% this year, compared with an 18 percent increase in the Standard & Poor's 500 Index. After Monday's rally, the Menlo Park, California-based company was now trading at about 154 times earnings. That's a greater price-to-earnings ratio than all but five companies in the S&P 500, according to data compiled by Bloomberg. A higher multiple can signal that investors think the company may report stronger earnings growth in the future. Zuckerberg saw Facebook’s stock price soar 30% last Thursday, bringing the stock price close to its IPO price of $38 in May 2012. The hoodie wearing CEO saw his net worth jump $3.7 billion after Facebook revealed its second-quarter earnings. Look what happenned last thursday. Facebook (NASDAQ:FB) had its price objective raised by JPMorgan Cazenove from $35.00 to $44.00 in a research report released on Thursday morning. Analysts at Cowen and Company raised their price target on shares of Facebook from $21.00 to $29.00 Separately, analysts at Telsey Advisory Group raised their price target on shares of Facebook from $38.00 to $41.00 Finally, analysts at UBS AG raised their price target on shares of Facebook from $30.00 to $36.00 The stock had a consensus rating of Buy and a consensus target price of $37.08. as of last Thursday. This is the quarter that tells us that Facebook is here to stay. My recommendation, is a buy.

Current stock price