we used to joke about how you throw an election using various tools at facebook which facebook actually could do. and tony martinez worked at facebook from two thousand and eleven to two thousand and thirteen and played a central role in developing facebook's micro targeting system. responsibility there was a product manager for ads targeting which meant basically turning all your user data into money for facebook what role do you think facebook played in donald trump's election huge i mean political pundits get things wrong all the time right but a well trained machine learning algorithm trained on good data doesn't often come up with the wrong answer and i spent years building tools to basically defeat human reason or human error you know dominate human tastes it's very weird but don't you think that can be a real problem when used as political candidates in their messages rather than consumer products right now i think politics are somewhat different right at the end of the day our democracy and our political system depends on it and that's frankly more important than selling a pair

that would mean not having facebook. facebook can't not have facebook. that's what makes it work is how it makes money and how it's an important thing in the world. they're trying their best to cosmetically address the problems. so they put extra effort into filtering out hate speech before the german election. they put efforts into figuring out fake accounts. they're trying their best to make sure the congressional election in the fall of 18 are not overrun by russian propaganda, but this is a harder problem because were talking about 435 house districts, at least half the state legislature has seats up. there's so many election that they have to monitor. it's almost impossible. facebook cannot fix itself. there's some policy interventions i would like to see. i like to see scrutiny of facebook i'd like to see instagram separate from facebook. her oculus rift severed from facebook. i think there too much power and data on all of us. it would be nice if the other systems competed with facebook. the merger should never have been allowed. it would at least

facebook. there was a reason that 2.2 billion people are regular users of facebook. that reason is my dog butter who appears on facebook pretty regularly and she is super cute and to get a tremendous response every time i post about butter. that just goes to show we all joined facebook for the puppies and the babies and the family news and updates on her friends from high school who just had a baby and the puppy or maybe one or the other, and that's the good stuff. so if it were just good stuff we would probably be pretty thrilled with our experience on facebook. but it's not. it's not because of course we are more than that. we are more than our core relationship. we are secondary, tertiary relationships as well. we're eight degrees out. we are a bundle of interest, a bundle of passions, a bundle of hatreds often, and we are fascinated by our ability to share and connect with people. so there is a certain addictive nature to using facebook. that is, at the muddle up with say, they teach you. m

facebook could do. and tony martinez worked at facebook from two thousand and eleven to two thousand and thirteen and played a central role in developing facebook's micro targeting system. responsibility there was product manager for ads targeting which meant basically turning all your user data into money for facebook what role do you think facebook played in donald trump's election oh huge i mean political pundits get things wrong all the time right but. well trained machine learning algorithm trained on good data doesn't often come up with the wrong answer and i spent years building tools to basically defeat human reason or human error you know dominate human tastes it's very weird but don't you think that can be a real problem when used to sell political candidates in their messages rather than consumer products right now i think politics are somewhat different right at the end of the day our democracy and our political system depends on it and that's frankly more important than selling a pair of sh

a rare miss for facebook. plus, on the heels of facebook results, investors gave a thumbs several tech peers in market trading. qualcomm terminates its deal to acquire nxp, bringing an end to a nearly two-year saga. we discuss where they go from here. to our top story, facebook shares tanked in after-hours trading after a lackluster second-quarter report. this is the first time they see user disenchantment in the midst of the scandals. in a very rare occurrence, the tech giant missed estimates on revenue for the first time since 2015. investors seem to be shocked the social platform's revenue is not continuing. facebook also missed the monthly daily active users. users remained the same in the united states and at 185 million and declining in europe to 279 million. from new york, we have david kirkpatrick. we also have melissa parish of e-marketer. melissa, what is the biggest headline here? >> the fact that facebook has not missed in quite some time. an 11% year-over-year increase is still a win. the headline

get facebook. growth has not ended for facebook. shift.this is a historic things are not as good as they were. that is significant. emily: i want to talk about instagram, facebook does not break down instagram revenue. according to estimates, it is continuing to grab a bigger share of that ad revenue pie, continuing to grab more users. melissa, instagram is saying 6 billion generate 8.0 dollars giving it 3% of the total ad market in the world. that is kind of huge. melissa: it is huge. i cannot speak to e-marketers listrs but at forrester we something similar. this is not surprising looking at other trending trajectories. internet usage has been moving mobile on a global scale for the past many years. one of the other interesting numbers i thought about facebook's earnings was that 91% of their ad revenue was now coming from mobile. the portion of the pie is continuing to grow as well. that shiftwill see a bit as other rivals start to shift more toward mobile as well. capturing aagram is large port

we were bennett for facebook because we have like a network of around three hundred facebook pages and profiles spreading fake news and we're like we don't spread any fake knew what the hell they're talking about brazil's federal prosecutor is called on facebook to explain the blocking of the profiles he's demanded a list of all pages and profiles blocked as well as a factual justification for each decision is co-founder of the free brazil movement and santos again he says the deleted pages were obviously influential enough to attract facebook's attention. it was in the last three years the most influential cult of page on brazilian facebook and it's all sore of one of the more influential political beaches in the world actually are or numbers of engagement used to be compared to. bigger and inherently and we did a lot of transformation or calgary because of our job because of our natural because we fought the mainstream media but as equally the knew that they couldn't win the public debate against us so they decided to shut it or not to make or make us quiet and that's what they're do

they have to log in code to side was blocked as facebook had a right to mario stick out after facebook refused to grant them access the parents want a first cousin twenty fifteen only for another quote and a ruling on the grounds that opening the account would compromise to privacy of the teenagers contacts in the latest the federal court ruled that digital messages out to be treated the same as diaries and letters until now lawyers and activists advise people to make their own arrangements until such time that there was a final ruling. i fundamentally advise people to take care of their estate one way to do that is by issuing a letter of authorization which can include how digital data is dealt with in case of death. not included you designate someone you trust and ideally give them power of attorney. to form after. so it is important to take care of once digital legacy but not everyone is so wear off that. me obviously so we're not going to know i haven't thought about what happens to it when i die i want photos are also digital inheritance i now print them off for my daughter and pu

facebook at times is a friend me, sometimes being -- sometimes a frenemy. >> i can't speak to facebook that i can take you that we do partner with a lot of technology platforms and marketplaces. one of the things we have done, we pivoted a couple of years ago to where we haven't open digital payments platform. we want to partner with companies like facebook and many other large technology platforms , but i can't speak to what's happening with facebook. buy,ine: you also want to you are still on the hunt for acquisitions. where would be the best place to invest at the moment? >> are capital allocation strategy has three pillars, what is investing organically, internally. another is returning cash to shareholders, and lastly, going out and acquiring companies for growth. last had a pretty busy quarter. we announced for acquisitions. these all help the merchant side of our platform. we also want to focus on the consumer side. as we look at opportunities to acquire different companies for growth, we want to make sure we are continuing to offer capabilities that are complementary to our pla

critical of facebook, he compared facebook to phillip morris to me in terms of facebook's negative impact on the world. what about concerns about fake snuzz? what about onlane hate? what about concerns about our privacy? >> i think there is a stunning nonconversation about taking on some sense of responsibility. meaning, sure. but choosing cnn or fox or msnbc has as many dynamics as what you're seeing in your feed and then more importantly what you're choosing to consume as real. to me the thought that facebook is any different than twitter or instagram, which obviously they own, or websites or a million different ways we consume is kind of laughable and silly. visa and target and the american government itself has had breaches of information far more dramatic and so, you know, yeah, i understand the concept. but i think making a jump from phillip morris, which systemically spent lobbying dollars and tried to pay off politicses for four to five decades to suppress information, is an aufrly big jump by that para -- awfully big jump by that person. emily: what about profitable versus privac

which facebook could do. and tony martinez worked at facebook from two thousand and eleven to two thousand and thirteen and played a central role in developing facebook's micro targeting system. responsibility there was product manager for ads targeting which meant basically turning all your user data into money for facebook. what role do you think facebook played in donald trump's election oh huge i mean political pundits get things wrong all the time right but a well trained machine learning algorithm trained on good data doesn't often come up with the wrong answer right and i spent years building tools to basically defeat human reason or human error you know dominate human tastes it's very weird but don't you think that can be a real problem when used as political candidates in their messages rather than consumer products right now i think politics are somewhat different right at the end of the day our democracy in our political system depends on it and that's frankly more important than selling a pair of

. >> facebook is a big loser. shares slumped and unhappiness is revealed. >> blackrock and vanguard differ in their expectations for the meeting next week. "daybreak: is australia." y: it is just past 6:00 p.m. in new york. we will be looking at all the action on wall street. let's get a look at the markets here. we did say -- we did see some positive pops, especially at the late end of the day, but that belies what happened in after hours. we did see the breakthrough in terms of the u.s. and the eu. donald trump and jean-claude juncker saying they would cooperate on tariffs. acebook missed estimates in big way and the stock price fell in after hours, down about 20%. it looks like qualcomm is not on track for securing its bid for nxp. just about half the story when you are looking at it on the markets board. haidi: we are also looking ahead to the ecb decision. some of the other big names like amazon, twitter, still yet to announce. alphabet versus facebook, we will get more on that throughout the course of the ho

let's get back to facebook. we are here with david and porter watching these numbers from facebook and watching shares continue to fall in the after-hours session in reaction. i want to bring up again appointed scarlet brought up earlier because a chart was posted on the live blog tracking this is that user growth is moderating at facebook. you don't be concerned about this particular issue. david: facebook is still growing 11% year-over-year. that is not terrible. if you are a believer that this is a company -- the profits are growing. they beat on profits. i'm not quite sure where the worry is in terms of the numbers. scarlet: it looks like europe is where daily active users declined. 282 declined from ,000. does that mean with the increased regulation in europe, that could be a template for other parts of the world? porter: i think you have hit on a crucial point for facebook's future. julyll be a cold day in when washington steps in and starts to regulate facebook. it is going to happen in europe. is there a

campaign to tackle fake news the move those caused outrage in the country many are claiming facebook is clearly interfering in the upcoming presidential elections for later this year the head of the rightwing free brazil movement says the tech giant's decision to block the accounts came as a surprise is our facebook justified its decision these pages and profiles were part of a coordinated network concealed by the use of fake accounts on facebook which hid from people the nature and origin of the continent for the purpose of generating division and spreading misinformation or of course. was shut down and i was like what the hell is going on then suddenly i start to receive. from. marvel friends who are also the woman and suddenly we also realize there are many many profiles or support files for all of the leaders for. shut down and then we realize first even before the facebook he was an answer we realized that there was our high tourers. journalism paper writing that we are we were bennett for facebook because we have our like a network of around three hundred facebook pages and pro

his facebook's -- facebook's algorithm has harmed -- an won'te entitled "facebook make the bed it lies in." mr. johnson is recognized for five minutes. representative johnson: i know this is a difficult subject. prior to my election, i litigated free speech cases in courts for almost 20 years. i am very wary of censorship .fforts sometimes, they are well intended but there is always subjectivity and it causes problems. i am still trying to understand what standards are organizations utilize to under -- determine how controversial or fake content is defined. haveu noticed, many of us other things going on. these have answered things, i apologize but this is a question my constituents want to know because they asked me all the time. how do each of your company's defined face news -- fake news? first, i want to say that we published a new version of our standards in april that gives all of the detail of what we tell our content reviewers in terms of how to apply our policies against hate speech and bullying. we also include a section on what we are doing to combat false news. it is not ag

scarlet: so facebook point -- emily: so facebook pointed to number of different issues. how much of this do you think is due to declining trust in facebook, or is facebook finally running out of new users? i think emily, you just put your finger on it with those past two points. i think they are running out of users in their most profitable market. believe thedo weight of the scandals over the past year is beginning to show up in user behavior. the people are more careful what they share on facebook. not everybody, but some people are. that does reduce engagement and activity, and is going to harm. i think facebook is looking to deflect attention away from the issue of its business model, and point at things like gdp, where candidly, facebook's approach has been incredibly crawled -- clever, but also not honest in the sense that they and google have both approached the european data regulation with a dialog box.ing the things you check off to determine whether you would like orhave the protections of -- not. those things have been very carefully engineered to prevent peo

you know using facebook ads to boost exposure of his fake article in facebook news feed him spend fifty three dollars on a so-called engagement brews experiment targeted people in three swing states key to trump to victory michigan pennsylvania and wisconsin i went with a demographic that is very likely to eat this stuff for example people who are. republicans who are members of the national rifle association people who do need to conservative causes after he selected the groups he wanted to target he clicked on the boost post button you know i just want to get caught i want somebody at facebook to shut this down and say like you know this is a violation of some terms but keep in mind facebook is a advertising business and the ad was approved within minutes so what happened did you immediately start getting people posting to it or reacting to it the reaction was bonkers like people were clicking on it and commenting on it and sharing on it and liking it like crazy within an hour about five thousand people sought. for for fifty bucks that doesn't happen that often you know i have compani

and to only open the facebook account by permission of her parents. as a part of her digital legacy just like a law for that or other that are so low i'm going to say it's just like if your your children were to pass away and you were to find a donor you have access to that it's the same thing rights of the very private that maybe you would otherwise never have see is that what we're talking about yes and the previous court rulings and berlin rules that are prioritized the previous the rights of the daughter over the rights you know off of the parents but since the daughter also you know she was she was a minor and also a digital legacy is everything that is remains from you online now the parents have a way of crime to a way of getting more access into the act this decision it only applies here in germany right right what about other countries i mean how are they dealing with this well i think it is a landmark ruling from what i've seen and heard facebook has previously stated they have a worldwide policy of accounts and of the deceased and that is y

you know using facebook ads to boost exposure of his fake article in facebook news feed him spend fifty three dollars on a so-called engagement brews experiment he targeted people in three swing states key to trump's victory michigan pennsylvania and wisconsin i went with a demographic that is very likely to eat this stuff so for example people who are. republicans who are members of the national rifle association people who do need to conservative causes after he selected the groups he wanted to target he clicked on the boost post button you know i just want to get caught i want somebody at facebook to shut this down and say like you know this is a violation of some terms but keep in mind facebook is an advertising business and the ad was approved within minutes so what happened did you immediately start getting people posting to it or reacting to it the reaction was bonkers like people were clicking on it and commenting on it and sharing on it and liking it like crazy within an hour about five thousand people sought. for for fifty bucks that doesn't happen that often you know i have c

facebook? ms. bickert: captioning performed by vitac >> the democrats campaign was so weak that this limited activity apparently influenced the elections and caused the united states to actually choose the wrong person for president, is that what you're telling us? that's a rhetorical question, you don't have to answer it. i reup the rest of my time to the current chairman of the committee. >> i thank the gentleman for yielding. mr. pickles, is it your testimony or your viewpoint today that twitter is an internet active computer service pursuant to section 230 subc-1? >> i'm not a lawyer so i don't want to speak to that, but i understand that under section 230 we are protected by that, yes. >> so if section 230 covers you and that section says no provider or user of interactive computer service shall be treated as the publisher or speaker of any information provided by another, is it your contention that twitter enjoys a first amendment right under speech while at the same time enjoying section 230

of adding a facebook. that's what facebook will have in total revenues this year. >> as a fund manager, what do you do do you buy more? do you buy stocks in the halo? do you buy more technology what's the action to the reaction >> we think technology is continuing to disrupt more and more sectors in the old economy. the f.a.n.g. stocks, it's just an acronym, but when you look at facebook, amazon and google, they have net cash of over 2$240 billion. they have huge skill benefits, skill benefits that bring benefits in unit economics, benefits in network effects, and we think that that can continue. that 2$240 billion in net cash i from apple, alphabet and facebook that gives them flexibility. you know, valuations have gone up but they have that cash flow behind them. amazon is a cash flow machine. so we think the f.a.n.g. stocks continue to do well, particularly alphabet, apple and facebook as well >> i know from looking at your fund, you are not a believer in netflix, the valuation to you is a bit too hot t

let's start with facebook. looking at a chart over the last two days which tells the story initially it dropped about 8% when the revenue slightly disappointed the revenue growth in particular. and then the earnings call proliferated the rate decline. as we approached the close a day after we're down about 19%, so that stock extraordinary move. and that of course has weighed on the sector purchase today if we look at the sectors tech, of course that the bottom down about 1.6% the lacquered for the day consumer discretion also down but nowhere near as much, about 0.5% energies up and industrials. industrials wraev got that positive trade enrhetoric on trade particularly with the eu again, around this time yesterday. so industrials have rallied, the likes of boeing and cap, that's up s&p down overall slightly the nasdaq because of the tech names down a full percent. some odd moves today the aussie dollar was down >> we have seen local currency mentioned many times dozens of companies have been talking about that

of rage against facebook and where do people go to express it, facebook and instagram. >> reporter: face book insists it is making changes to address security, and it still dominates social media worldwide. from london to berlin, the vegas strip to tokyo, also owning instagram, messanger. and whatsapp. despite the stock sell off today, it's only back to where it was in may. tom costello, nbc news, washington. >>> this is jo ling kent, the world's largest social network is struggling in the battle against fake profiles. the problem is so big facebook says it's disabled 1.3 billion fake profiles over the past year. police officer justin turney was just 22 years old. o a year later as the community mourns, a fake profile with his photo appeared on facebook. >> i couldn't believe somebody would stoop that low. they created a facebook profile page stating he was married, from iowa and that he was currently working at the kansas city, kansas police department. >> reporter: chief of police j.r. kidney says he contacted facebook to remove the fake profile. >> our response from facebook is z

facebook has said it's open to discussion but there is no doubt this is great p.r. spin by museum curators it is in fact possible to post artistic names on facebook if it's part of an ad that is in the stricter guidelines and could be rejected but facebook might be playing it safe for different reasons back in two thousand and seventeen facebook came into fire for failing to may have sexual images of children and also failing to stop leaks revenge porn photos all this spot concerns in the face. moderation system facebook's very both take census posts but it appears that makes it hard to distinguish between pornography and autistic nudity but when it comes to exploitation though you can be sure as a facebook user you'll be protected from all this. as you just saw visitors to the rubens house in antwerp were jokingly prevented from seeing paintings by brick masters to protect them from nudity the marketing director of visit told us how people responded to the prank bell they reacted very funny actually because they were not always aware that this kind of artist or pai

and facebook is mocked for finding out for ties in featuring classic works by the flemish artists rupert due to bad portrayal of nudity. if you have a social media account we have to take you away from the nudity thing to protect you against nudity even if artistic in nature. a warm welcome and a very good morning to you it line i am here in moscow and you're watching r.t. international with me the caring meanwhile in iraq islamic state is apparently trying to make a comeback with the number of terror attacks doubled in the past month in the country that's according to a security advisor of the iraqi government that we spoke to iraq declared a final victory over i still last december. and. in june the ice to militant steps up their activity according to government data there were eighty three cases with doctors in coatesville of course that's twice the number and i still had been devastated by the government military crackdown when i asked the iraqi ministry of internal affairs to comment on this and we'll bring you their response as soon as we get it the u.s. started its campaign in twe

all these things were deemed clinical by facebook and blocked -- deemed political by facebook and blocked. one advertiser was advertising a baseball night for families in a town called clinton, and he said he is still getting that prompt from facebook even our -- after our story ran. there are plenty of kinks to work through. it shows how difficult it is to build an algorithm that can understand not just the content, but the context of the content and whether something is political. it's definitely something that is hard for a machine to figure out. selina: facebook has made a lot of changes to its advertising policy, as has twitter, but that seems to barely scratch the surface. in the 2016 presidential campaign, a lot of what the russian trolls were doing was making fake profiles, spreading propaganda in a very organic way. what has facebook done on that front? sarah: so, there has been a lot of work that facebook has done to try to figure out what's happening on the platform and try to prevent election interference in the future. they've hired a bunch of people. they are working with ex

facebook. and also there is instagram for people who do not want to be on facebook. great growth in instagram. but there is a question about whether instagram is a more fla ky about whether instagram is a more flaky platform in terms of commitment of users and whether they are commitment of users and whether they a re less loyal. commitment of users and whether they are less loyal. facebook has stumbled again going into china? we had an announcement about opening up a research centre in china one day and that was yes, they are getting into china in a big way and the next day came news they had not been given permission and it may not be happening. the general backdrop is all of these companies have experienced extraordinary growth in terms of stock market valuations and there are bound to be stumbles when people look at the facts and worry whether that kind of growth is sustainable. twitter results out later. that will be interesting when we get the picture from that social media company. i wan

, will get facebook. growth has not ended for facebook. but, again, this is a historic shift. things are not as good as they were. that is significant. emily: that was techonomy ceo david kirkpatrick. and melissa parrish of forrester research. i also caught up with a representative from elevation partners. he was one of mark zuckerberg's mentors and an early investor and has been very critical of the company's privacy issues. roger: investors have been willing to overlook a lot of red flags that have been showing up for the past year. the maturity of north america has been in sight for the last two quarters. there were at least signals europe was reaching some kind of saturation as well. those are by far the most profitable parts of the facebook application in terms of generating profits. so any slowdown there was going to spell trouble for the stock. to be clear, i look at this thing as a mixed signal for -- situation for facebook. if you are an investor, the good news is they have other -- the good news

facebook data from 87 million facebook profiles was used to develop profiles of users. they reported the required report. facebook learned that they have that of the cambridge analytical. at that time did facebook take any additional steps beyond certification. to confirm that it has been deleted. does your company take active steps to confirm thatci they were properly secured. >> and the witness of me answer the question. thank you mister chairman. congressman peer. after we were notified of the potential breach. we did take steps to obtain that. and this is and this is the comments of our ceo when he testified before congress on this. we are taking many steps now to understand the extent of any data that may have been passed. and that we are also taking steps to ensure that this has not happened with other apps. i'm sorry for you too. i understand the request wasas from google. you may find this as on point to you too but there are similar examples. i'm going to phrase this into google corporate fashion if you don't mind. last month google provided a link for the cali

a womanot stole p of a woman's twins on facebook. >> she chaeged names, birthday. >> reporter: facebook is attempting to solve p thisoblem by using artificial intelligence tools to spot >> the problem is they built a platform well beyond their abity to monitor it. >> reporter: after a month and a half, facebook removed the fakeo profile witficer tierney's photo. >> there's much data and information that they have, they could be law enforcement's best friend but in this situation, somet les i feelke they're our worst enemy. >> reporter: facebook declined our rerquest for an iew and apologized for what happened and called the oklahoma police department case a mistake saying their community standards do not allow people to misrepresent themselves or impersonate others. this comes as facebook grapp es with en bigger battle, a fake profile, bogus advertisers and foreign influence aheadth o 2018 midterm election. jo ling ket, nbc news. >>> two georgia police officers left it up to chance to see if a woman should go to jail. tonight, their luck has run out. >>ou may rememb seeing this video. i

if facebook did not exist, he would be a lot tougher. facebook connect of the country. it connected rural cities across the country and different types of backgrounds. it is doing exactly what it is designed to do, connect us all. i think facebook is also a liberal company, maybe it's management is not, but it has an inherited by us. like these other companies, it is based in a place that is extremely biased. i can see it today, being up here and talking to you. northern california is not eastern kansas. their employees have bias. those decisions go into every line of code they write and everything they do. they will have to swap that and try to kill that. but i will tell you, facebook more than all of the companies is trying to kill it. the question you're asking is whether or not they can crush that. i do not think they can. inherent bias is significant and it is up to me to be a leader in our party and somebody running the campaign to make sure the companies are held accountable and that they do everything they can to kill the internal biases and provide an even play

and facebook is not for banning our ties in featuring classic works by the flemish artists rupert's due to their portrayal of nudity if you have a social media account you're going to take you away from the nudity thing to protect you against nudity even if artistic in nature. for a warm welcome when you're watching r t international with me nicky aaron that we start with a developing story from syria where fifty people have been killed and dozens wounded in a series of terror attacks in the southwest of the country the most serious was in the city of psuedo one suicide bomber detonated explosives in a market place there and two others were killed by a tease before they could carry out an attack other assaults occurred in villages near the city state t.v. says islamic states are behind the attacks. meanwhile in iraq. state is apparently trying to make a comeback with the number of terror attacks doubled in the past month in the country as according to a security advisor of the iraqi government we spoke to iraq declared a final victory over eisel last december. and. in june the ice stepp

the nasdaq pulled lower by that historic drop in facebook ares. so the industrial average gained another 112 points today to 25,527. the nasdaq was down 80 and the s&p was down eight points today. >> as we reported last night, facebook sai it expects its revenue growth rate to slow from last year. that warning resulted in facebook suffering its worst day in history as a public company and the biggest one-day stock value loss in stock market history. so what happens now for fa book? look.boorstin takes a >> facebookaising red flags and after revenue growth flowed more than expected it would continue to decline merningfully ov the next two quarter, and the lowest growth rate ever and in europe, user numbers declined in the quarter and some are timistec over the social platform's future. we think prospects look good, lo term, short term and obviously tnre will be questio mashes around the deceleration. also raising concernsbo face warned that ads in the stories atured on facebook and instagram are profitable as ldcebook's news feed and bulls say that

facebook did everything they could. they told us last quarter that this would have an impact on engagement engagement and it was a simple connect the dots and nobody did that. >> everybody missed that warning? unprecedented down, and this is an unprecedented miss on the part of wall street analysts >> i absolutely think it is. i looked at the numbers tonight, i wasn't expecting this kind of reaction and but was surprise that they were looking for dau and mau growth to the level that they were. i think it is -- it's an example of just group think around the story and i don't want to throw facebook under the bus than we have here, but that's what happened i don't think facebook is to blamed and i think the analysts and investors are to blame. >> read through the broader market, and we'll make an all-time high seemingly every single day do you take it that far and is it facebook specific or does it not even matter at this point? >> i the other companies will be impacted by it, and they're at all-time highs, too and people

page that's facebook dot com forward slash a.j. inside story you can also join the conversation on twitter our handle is at a.j. inside story for me mohammed abdul in the entire team here bye for now. i. discover the world of al-jazeera. the best films from across on network of channels for the line this is to be good but i'm about to be fresh perspectives and new insights. to challenge and change the way we look. i'll just hear all of this time on just. the psalms in archaeology graduate from iraq he's also a part time going to pergamon museum which includes a reconstruction of the famous ishtar gate in most of the people he's showing around came to germany as refugees this is just one of several billion museums taking part in the project called a meeting point and as well as bringing people together one of its aims is to emphasise the contribution of migrants right up to the present day to western culture. because i've been here for some time i can help them with lots of things that moves us forward to me the great thing is it's

facebook is the .1% that delivered his message. if facebook hadn't existed, it would be tougher. facebook connected the country, people of different backgrounds. it is doing exactly what it was designed to do, connect us all. facebook is a liberal company. maybe its management isn't, but it has inherited bias. it is based in a place that is probably extremely bias. i can see it talking to you. northern california is not eastern kansas. their employees have bias. it probably goes into everything they do. that is something they have to try to kill. facebook, probably more than all of the companies, is trying to kill it. the question is if they can crush that. i don't know if they can. i think the inherent bias is significant. it is up to me, as someone leading the campaign, to major the companies do everything they can to kill the internal biases and provide an even playing field. emily: what about twitter? mr. parscale: they did not contact me back from the letter that i sent. i have spoken to mr. dorsey. i feel that company is more torn to revise. the platform itself is not that

that's facebook. shares posting their biggest decline ever after reporting a big slowdown in user growth. three key takeaways, number one, weaker than expected revenues, global daily active users came in less than expected. a lot of that showing up in europe, and some ad revenue projections also fell short of expectations now facebook's drop initially after hours wiping out roughly 123 billion in market value. not as much right now because facebook stock is down only about 17%. as we have highlighted, facebook is a top 15 holding in more than 140 etfs if you own these three etfs, pay attention. they have the biggest exposure to facebook according to etfdatabase.com. the xlc, 21.5% the advocates, 12. % a and the socl, 12%. the xlc down over 5% on the facebook news. let's talk more about this and the broader overall markets with chad morganlander from washington crossing advisers you're a value guy we'll have to switch gears on you here do you own facebook? >> we don't. we've been recommending growth in

facebook one in a lot of ways. facebook is the .1% that delivered his message. if facebook did not exist, he would be a lot tougher. facebook has connected the country, rural cities across the country and different types of backgrounds. it is doing exactly what it is designed to do, connect us all. i think facebook is also a liberal company, maybe it's management is not, but it has been based in a place that is extremely biased. northern california is not eastern kansas. their employees have bias. this is in everything they do. they will have to swap that and try to kill that. i think facebook is trying to kill it. the question you're asking is whether or not they can crush that. i do not think they can. inherent bias is significant and it is up to me to be a leader in our party and somebody running the campaign to make sure the companies are held accountable and that they do everything they can to kill the internal biases and provide an even playing field for the companies. -- for this country. emily: what about twitter? >> they did not contact me back from the

and also failing to stop leaks revenge porn photos all this part concerns of facebook's more than. ration system facebook's very baltic census flag posts but it appears it makes it hard to distinguish between pornography and autistic nudity but when it comes to exploitation though you can be sure as a facebook user you'll be protected from arts in the video you just saw visitors to the rubens house and jokingly prevented from seeing paintings by bar rock masters to protect them from nudity and the marketing director of visit flanders told us how people responded to the plank they were not always aware that this kind of artist or paintings are not able to be shown on the social media they were not aware of it and actually we were not aware of it either because we have learned a whole campaign by our facebook to make the world to aware of five from the cheers of flemish masters actually it's an open invitation to facebook to make them rethink the rules that they have because we believe that not showing the new thing paintings is like covering up five hundred years of our art and west

we were bennett for facebook because we have like a network of around three hundred facebook pages and profiles spreading fake nails and we're like we don't spread any fake knew what the hell they're talking about brazil's federal prosecutors called on facebook to explain the blocking of the profiles he's demanded a list of all pages and profiles blocked a lot as a factual justification for each decision is co-founder of the free brazil movement run and santos again he says the deleted pages were obviously influential enough to attract facebook's attention. it was in the last three years the most influential. of page on brazilian facebook and it's of or one of the more political beaches in the world actually or numbers of engagement used to be compared to mr b. and inherently and we did a lot of transformation or calgary because of our job because of our natural because we fought the mainstream media the as equally the they knew that they couldn't win the public debate against us so they decided to shut shuttle or not to make or make us quiet and that's what they're doing they start to

biased on facebook how is facebook going to navigate these issues going into the elections? is anything going to be different? >> and will be a lot harder for facebook to do that if they decide that truth is a matter of opinion. people are getting angry at facebook for 11 content to be on there that they do not agree with. this company is really trying to deal with these people who say that they have anti-conservative bias. they've hired a former senator to advise them on this. they are looking into it, but on the same side, they have made changes to their algorithm that has not in a fitted conservative .ommentators they have built this site that is a place where ideas on either side get more attention than ideas in the center, or ideas --ters of the fact-based ideas that are simple fact-based. but they cannot make it very political. it is tough for them. emily: while it is evolving. facebook is navigating its way through all of these thorny issues. thank you so much for joining us. a medical lab testing company appears to have been hit by ransomware attack. labcorp handles

adult is on facebook. 90% of the adult population in europe is on facebook. at some point these things let go. -- these things plateau. then you have these bigger issues around the company like gdpr. it feels like the company has grown, where it could potentially grow and it will be a harder message at this point going forward. nejra: where is the growth going to come from? ones, instagram and whatsapp, phenomenal acquisitions. they are harder to monetize and they are younger businesses. the company will have to play catch-up to make up for the fact that growth has stalled. the product is used by everybody and has not changed very much in the last couple years. they will have to go back to the drawing board. tom: thank you so much. greatly appreciate it. news, this has been expected. -- $2 billion gift and compensation. james with us. did you own facebook? you are not a facebook guy. did you have a bad night? shares,ve facebook underweight position because of the risk associated with a model. i have three takeaways. first. revenues were disappointing. second.

everything from are the controversies finally starting to hurt facebook where it hurts, does facebook have a communications problem, have we ever seen any kind of guidance like this. i think gene munster called is unprecedented revenue guidance the question is, is this a buying opportunity on a very steep sell-off >> a couple of holders admit guidance was puzzling. to forecast it that far out, some are questioning it. you heard mark may talking about all the positives. there is no doubt this is still a very rapidly growing company but when i look back at the last quarter where they were growing 60% operating growth, and -- i'm sorry, 39% operating growth in the first quarter, even though they were hiring more people everybody was saying, don't worry about all the things they're dealing with and the people that they're hiring to go through content and everything else apparently it is not going to hurt them. something seemed to have happened this quarter that potentially changed. clearly mau growth and everything else. but it's more this guidance. it wasn't a great quarter that they rep

or not facebook is hitting a plateau in users overall. facebookith an early investor who's been very outspoken about facebook and these privacy issues. he thinks the main headline is that facebook is saturating in its most profitable market, and that's the united states and europe. we saw mark zuckerberg trying to paint a very rosy picture, to talk up instagram and the family of facebook apps, but in some sense, instagram has a lot of the same problems facebook has. facebook certain has a lot to , but in the coming quarter the cfo on the call was not optimistic about revenue growth going forward either. so there is a lot to be watching for. ramy: and if your own people are not optimistic about it, it doesn't exactly bode well. emily chang, thanks as always. more after the bell earnings and were seeing intel as well as starbucks on the move. intel.an, let's for with what are the details? su: a bullish forecast, let's go to the numbers right now. what you see is a company that came out with very strong data center business reports. 27% beca