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Snap Shares Falls Down to An All Time Low

After dropping as much as 8.6 per cent to bottom out at an all-time low of $6.84 per share, the social media company's stock recovered to close at $7

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Snapchat made more interactive with 2 new features. Pixabay
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 Photo-messaging app Snapchat’s parent company Snap shares fell to an all-time low after an analyst commented that the company may run out of cash by 2020.

Snap shares tumbled more than six per cent on Tuesday after a Wall Street analyst said the Snapchat parent was “in danger of running out of cash by 2020”, NYpost.com reported.

Last week, Snap CEO and Co-Founder Evan Spiegel told employees in a 15-page memo that the company is gunning for “full-year profitability” in 2019.

Snapchat, snap shares
Snapchat on a smartphone device. Pixabay 

Instead, Snap is poised to fall “woefully short” of that goal, losing a projected $1.5 billion next year, according to Michael Nathanson of research firm MoffettNathanson.

Snap is not only “running out of money” but also lacks “options to rectify its cash burn problem,” Nathanson was quoted as saying.

After dropping as much as 8.6 per cent to bottom out at an all-time low of $6.84 per share, the social media company’s stock recovered to close at $7 — 59 per cent below Snap’s IPO price of $17 per share in March 2017.

Also Read: Snapchat Expanding Its ‘Our Story’ Feature

Nathanson called Facebook the cause of Snap’s woes — the result of its having “unashamedly copied promising product features, such as Stories, and deployed them across its platform.” (IANS)

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Facebook Must End Far Right’s Fundraising: British Leader

In recent years, Facebook has suffered sustained criticism over its handling of a series of crises, including interference during the US presidential election 2016 and the Brexit vote, allowing dissemination of hate speech and a data breach affecting millions of users

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A television photographer shoots the sign outside of Facebook headquarters in Menlo Park, Calif. VOA

Facebook CEO must put an end to far-right activists’ fundraising on the social networking platform, said British Labour leader Tom Watson, while criticising Mark Zuckerberg for having a “contempt for social responsibility”, the media reported.

According to a Guardian report, Tommy Robinson, a British far-right activist with more than 1 million followers on Facebook, has been receiving financial, political and moral support from a hidden global network of US thinktanks, right-wing Australians and Russian trolls.

Robinson, whose real name is Stephen Yaxley-Lennon, has raised hundreds of thousands of pounds through online donations, some via the social network.

Although Facebook has disabled Robinson’s access to the donate tool, meant to be reserved for charities alone, but supporters visiting Robinson’s Facebook profile continued to be directed towards his website where they could make donations through a form, the British daily reported on Saturday.

A Facebook spokesperson confirmed the action.

“We have removed the “Donate Now” button from this page. This function is only available for pages that list themselves as a “charitable organisation” and allows them to link to an external webpage of their choice. As this page is for a person we have now removed this,” the spokesperson was quoted as saying.

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Facebook, social media. Pixabay

Facebook is Robinson’s main social network after Twitter suspended him for claiming “Islam promotes killing people” in March, the report claimed.

In a blog post, Watson wrote: “Today I call on him to give a full explanation of how this dire breach of Facebook regulation occurred, pledge that it will never happen again, and, as an apology, make a match-fund donation to Hope Not Hate (a UK-based advocacy group).

Facebook should be ashamed that it had enabled Robinson’s efforts to “divide communities and stoke up hate”, said Matthew McGregor, Hope Not Hate’s campaigns director.

Also Read- Google Rolls Out Gender Specific Translation to Reduce Bias

“Facebook has continually failed to deal with the fact that their platform is vulnerable to exploitation by extremists, until after it is too late. Warm words after the damage is done don’t help reverse the damage caused,” he added.

In recent years, Facebook has suffered sustained criticism over its handling of a series of crises, including interference during the US presidential election 2016 and the Brexit vote, allowing dissemination of hate speech and a data breach affecting millions of users. (IANS)