So yesterday, Facebook made IT support history. But it’s probably the worst kind of history a company can make. Facebook sets a record (this one ain’t good).
Yesterday, Facebook lost around $150 billion in 90 minutes! Facebook leaders told stockholders and the public they expect a slowdown. They also expect this slowdown to last for years. These are things no Facebook stockholder wants to hear. Then the selloff began, and kept up for the last 90 minutes of the trading day. By the time the nightmare of a day ended, Facebook stocks were down 24%. Now, $148 billion in Facebook value is gone. As of this writing, it still struggles in the red.
Yesterday, CEO Mark Zuckerberg said 2.5 billion people are on Facebook now. But that’s where the good news ends. Because he followed with woeful second quarter numbers. Then add the lack of new daily and monthly active users. But that’s not what started the downward spiral. First, Facebook CFO David Wehner said revenue growth will slow. Then he said expenses will surpass growth and revenue into 2019. Ouch. That’s not good. Right now, operating margins are in the early forties. But for now, and in the years to come, they expect profit margins to be in the middle thirties. I’m not sure if Facebook sets a record. But it’s coming awfully close.
Facebook is an IT service company that knows better days. They can start with the fake news controversy in the wake of the tumultuous 2016 US election. To this day, many on the political left partially blame Facebook for Trump’s win because of ‘fake news’ articles and alleged Russian hacking. Then came the Cambridge Analytical scandal. Finally, I read an article saying that less teenagers, the iGeneration/Generation Z, are even into Facebook. Partially because it’s now so popular with older generations. So now, they’re turning to other forms of social media. Will Facebook recover?
So Ebay has been a jewel of the IT service and Internet world since the late 1990s. But it looks like even this jewel is going bad. Let’s look at Ebay’s struggles: From layoffs to falling stocks.
Ebay, an online retail giant for 20 years, said they will cut around 300 jobs. They also said these jobs will be in the San Francisco and San Jose area and cuts will happen by July 20. That’s tomorrow. But the people losing their jobs got their notices in June. So they’ll have time to financially and emotionally prepare. Ebay offices in San Jose alone loses over 200 jobs.
On the surface, it looked like Ebay is still doing good. Not really. Because they lost around $1 billion in this past year. In fact, in one quarter alone, their profits slipped over 60%. That’s not the only thing that’s slipping. The last time I checked, a few minutes ago, Ebay stocks fell 9% in just this morning alone. That’s almost a one-year low. In fact, their stocks fell 1.34% in the past year. That may not sound like much for a year. However, keep in mind shareholders expected a 4% increase of stocks in 2018. It looks like they were about to get it…until Ebay’s struggles became public.
Some insiders point out it’s not that they’re losing customers, or that they stopped spending. It’s that they’re not getting enough new customers. They also blame…you guessed it…Amazon and Walmart for this decline. Walmart’s upping their online sales. Despite Ebay execs and other leaders working as hard as they can, it’s still tough to compete with Amazon. I’ve noticed that in and around my own computer service shop. They’re not the only ones. Just ask Toys R Us and Radio Shack how hard it is to compete with Amazon and Walmart. Oops, I forgot. They’re not around anymore. Will Ebay overcome their struggles? Or will they be just another victim?
So back in 2005, Congress looked for a way to strengthen ID credibility. They did it because the 9/11/2001 hijackers used fake ID’s. They came up with? The Real ID Act. Now, it will soon take effect. The Real ID: Technology in driver’s licences.
So all?Americans will need this ID by October 2020. This Real ID is a federal compliant state ID or drivers licence. To get it, you will need the following: social security card, birth certificate, and two proofs of your state residence. The RMV/DMV places across America are taking this seriously. In fact, the RMV near our computer service shop closed down for three business days just to set up the technology they need for this.
But what does this have to do with IT support or computer technology? With this Real ID, they will put your information in a federal database. This help the federal government can track you wherever you go. Does that sound like science fiction? Then why are RMV’s all across America getting new computer systems just for this ID transition? They’re switching from the ALARS to ATLAS systems. Some say they will even scan your face and put your facial features in this database. I don’t have proof if they will or won’t. But look at how popular facial recognition technology is today. It’s possible.
However, here are some facts. If you don’t get a Real ID by October 1, 2020, then you won’t be able to do a lot things you take for granted. You won’t be able to board a flight, international or domestic. Also, you won’t be able to enter any government building. This includes city halls and courtrooms. If you work at a nuclear power facility, then you won’t be able to go there either. It seems like they’re really going to make us get the real ID, whether we want to or not. What do you think of the real ID?
So a few day ago, the Iranian government arrested 18-year old Iran citizen Maedeh Hojabri. But what was her crime? Simply dancing on Instagram in casual clothes! But now, other Iranian women use social media to protest this arrest.
Because in Iran, the sharia law government has strict rules against women dancing on social media. However, Hojabri has over 300 Instagram videos of her dancing to Iranian and American pop music. Soon, the government arrested her and 3 others for this. She even confessed on their state TV.? Thankfully, she posted bail and is free. However, this started a social media movement among Iranian women.
There is a hashtag movement going on they call #dancing_isn’t_a_crime. Women are picking up their computers and smartphone cameras to dance in support of Maedeh Hojabri. One young lady not only dances in causal clothing, but has a message for Iran. She calls out their hypocrisy. Basically, she says young women could get arrested for dancing, but her government let rapists and child molesters go free. She speaks truth. Another dances on the street in public. On her Twitter page, she says she dances to support the girl they arrested. Also on Twitter, while dancing, one young lady says she dances to let them know they can’t take away their happiness. These are some ways Iranian women use social media to protest.
So now, we all know about the crisis in Thailand. Two weeks ago, 12 boys and their soccer coach got trapped in a cave, and a Thai Navy Seal was killed trying to save them. But there is good news. As of this blog, they rescued at least 5 boys. Now, IT support billionaire and Tesla CEO Elon Musk offers help to Thai victims.
Musk sent a mini-submarine to Thailand. In fact, it should arrive sometime tonight. Musk himself estimates the sub should be there by 11pm Thai time. However, and thankfully, the rescue mission is in full swing. I say thankfully not to diss Musk, but I am thankful some of those boys are already out. Musk hopes the sub is useful, but if it isn’t, then the Thailand can keep it for further use.
Musk started communicating with Thailand since this crisis started back on June 23. For example, he suggested sending tubes through the Tham Luang cave. Then, they can blow up these tubes. That way, they can use these tubes to travel and escape through the cave without risky scuba diving. Yesterday, he showed off tests of his people working with a mini-sub in Los Angeles waters. And now, one of those mini-subs are going to Thailand. Also, some of his engineers are going to Thailand to offer their help. The Thai government and people continue to give Musk an outpouring of love and gratitude for his help.
Despite a crisis like this, it’s refreshing to tell stories like this. I know I often talk about how IT service and modern technology can harm our society. But now, it could help society, even save lives. I join the Thai people in applauding Musk in his efforts. I’m happy Elon Musk offers help to Thai victims. If they get the rest of those boys and coach out, then great. If they use Musk’s tools and people to continue the rescue effort, then that would make him a bigger man and hero then ever. Do you think Musk will save the day for this rescue?
So most of you know I’m cynical of major mergers. I’m cynical because I think when they’re too big to fail, they’re too big to care. This is in contrast of our computer service shop. Here, our computer repair experts always care.? But this is the merger of all mergers. AT&T and Time Warner merge: Now what?
They worked on this deal for months, but it’s so big and controversial that the legal system held it up. The hold up argued this merger would lead to less consumer choice and higher TV prices. However, earlier this week, Federal Judge Richard J Leon lifted the suit. Judge Leon allowed and approved the $85 billion AT&T and Time Warner merge to continue. In fact, AT&T leaders say they want to close this deal as early as June 20, 2018.
So some may say, “No big deal. What does this have to do with me?”. Keep in mind AT&T is the 2nd biggest mobile phone company around. Also keep in m ind Time Warner is the 2nd largest TV/cable provider. Time Warner either owns or has stake in NBA, NCAA March Madness, Warner Brothers, Major League Baseball, DC Comics, and cable stations like CNN, TNT and TBS. Both companies say they have merge to compete with streaming companies like Netflix and Hulu. They also say this merge will give costumers video offers. But opponents , like, consumer rights group Public Knowledge say the merge will lead to higher prices and less programming choices.
Well, I do disagree with the programming choice part. Because thanks to so many venues to choose from, we have more choices than ever before. I’m old enough to remember when there were only four channels: NBC, CBS, ABC and Public Television. A couple of years later, we got cable, and hit entertainment gold! That gold only carried 30 channels, but for a 1980s kid, that was a fortune! But I do worry this will lead to more mega mergers that will squeeze out the little guy. For example, T-Mobile wants to acquire Sprint.? Then you have Disney and Comcast fighting for 21st Century Fox. Is this merger any good. Or are we on our way to a media-opoly? Are we already there?
