Call to boost data protection

Last month, Japan told Facebook (FB) to improve protection of its users’ personal data. The call from Japan came after Facebook disclosed a data breach that affected an estimated 29 million users. That was on top of the data privacy breach linked to the now defunct British political consultancy Cambridge Analytica. Japan was one of the countries that investigated the Cambridge Analytica incident, which affected around 87 million Facebook users including tens of thousands of users in Japan.

Why It’s in Facebook’s Interest to Heed Japan’s Call

Shift to digital advertising

Although Japan’s call for data protection isn’t an administrative order, it would be in Facebook’s best interest to heed it. Japan is a vital market for the company thanks to its expanding digital advertising market. According to eMarketer, marketers in Japan are steadily shifting to digital advertising from television commercials. This year, television commercials are expected to capture 32.4% of media advertising expenditures in Japan, topping spending on digital ads at 29.8%. But by the end of 2020, digital ads are expected to account for 32% of Japan’s media ads outlays compared to 31.2% for television commercials.

Media ad spending in Japan is estimated at around $41.4 billion in 2018. And the market is growing, presenting an attractive commercial opportunity for Facebook.

Facebook’s top line rose 33%

Facebook’s revenue increased 33% YoY to $13.7 billion in the third quarter with advertising sales accounting for 98.5% of the amount. Alphabet (GOOGL) and Twitter (TWTR), two other mostly ad-funded companies, grew their revenues by 21.5% and 28.6% YoY, respectively, in the third quarter. Snap (SNAP) and Yelp (YELP) grew their third-quarter revenues by 43.2% and 8.0% YoY, respectively.

Latest articles

German chip maker Infineon Technologies has reportedly raised 1.55 billion euros (~$1.74 billion) in capital by selling its shares to fund its acquisition of Cypress Semiconductor (CY). Infineon has sold ~113 million new shares at 13.70 euros each.

As of June 18, Dunkin’ Brands (DNKN) was trading at $80.07, an 8.9% rise since reporting its first-quarter earnings on May 2. Also, DNKN was trading at a premium of 29.8% from its 52-week low of $61.69 and a discount of 1.6% from its 52-week high of $81.40.

19 Jun

Are Lower Oil Prices Weighing on ExxonMobil Stock?

WRITTEN BY Maitali Ramkumar

ExxonMobil (XOM) stock has fallen 7.1% in the second quarter so far. Let's review ExxonMobil's stock performance in comparison to oil price changes and equity market movements in the quarter.

19 Jun

As Facebook Unveils Libra, MSFT and CRM Join a Blockchain Group

WRITTEN BY Mayur Sontakke, CFA, FRM

On June 18, Facebook (FB) launched Libra, its own cryptocurrency. On the same day, CoinDesk published another piece of blockchain news that didn’t receive as much fanfare as Facebook’s Libra news. Was the timing a coincidence? We think not.

Uber Technologies (UBER) has picked Melbourne as another test site for its flying taxi service known as UberAir. The Australian city is the first international test site Uber has chosen for its flying taxi service. The addition of Melbourne brings the number of test locations Uber has picked for its UberAir service to three.

Lyft (LYFT) and Uber Technologies (UBER) are pushing back against California legislation that would require them to recognize their drivers as employees rather than independent contractors. The legislation would require companies like Lyft to give their drivers the compensation and benefits spelled out under California’s employment regulations.