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Facebook co-founder and CEO Mark Zuckerberg testifies before the House Financial Services Committee in the Rayburn House Office Building on Capitol Hill October 23, 2019 in Washington, DC. Zuckerberg testified about Facebook’s proposed cryptocurrency Libra, how his company will handle false and misleading information by political leaders during the 2020 campaign and how it handles its users’ data and privacy.
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Facebook CEO Mark Zuckerberg came out swinging at the start of the company’s third-quarter earnings call Monday, defending its research on how its services affect users, following numerous press reports Monday based on documents leaked by a former employee.

“Good faith criticism helps us get better,” Zuckerberg said. “But my view is that what we are seeing is a coordinated effort to selectively use leaked documents to paint a false picture of our company. The reality is that we have an open culture, where we encourage discussion and research about our work so we can make progress on many complex issues that are not specific to just us.”

Zuckerberg said Facebook does this work “because we care about getting this right.”

The reports came from a consortium of 17 news outlets in the U.S. that were provided internal research by Frances Haugen, a former employee who also provided the documents to Congress and the Securities and Exchange Commission, seeking whistleblower status. They follow an earlier series based on the same documents by The Wall Street Journal, which prompted hearings in Congress and abroad.

The reports revealed that Facebook had been aware of the ways its own services could negatively impact some users’ mental health, push polarized recommendations to users and spread potentially dangerous misinformation. While Facebook has taken steps to make its platform safer on all of these counts, the company’s detractors say it hasn’t acted boldly or quickly enough.

A theme in Zuckerberg’s argument was that the problems Facebook experiences are a reflection of society.

“These issues aren’t primarily about social media,” Zuckerberg said. “That means that no matter what Facebook does, we’re never going to solve them on our own.”

He said polarization began rising in the U.S. “before I was born” while pointing to unspecified research finding that countries with similar social media use have seen stagnant or declining polarization.

He said Facebook often needs to choose between a host of trade-offs, such as providing encryption versus supporting law enforcement investigations.

“It makes a good sound bite to say that we don’t solve these impossible trade-offs because we’re just focused on making money, but the reality is these questions are not primarily about our business, but about balancing different difficult social values,” he said.

Zuckerberg said he has called for regulation so that companies like Facebook aren’t the ones that have to choose between those trade-offs.

He said he’s proud of the research Facebook has done and emphasized the company’s investments in safety and security measures.

But, he said, he worries the response to Facebook’s research could create negative incentives for other businesses to do similar work.

“I worry about the incentives that we are creating for other companies to be as introspective as we have been,” he said. “But I am committed to continuing this work because I believe it will be better for our community and our business over the long term.”

A new ‘North Star’

Toward the end of his opening statement, Zuckerberg announced a new strategic vision for the future of the platform. He said that rather than make Facebook a place that caters to the greatest number of people, it will now place a greater focus on young adults, ages 18-29.

“We are retooling our teams to make serving young adults their North Star, rather than optimizing for the larger number of older people,” Zuckerberg said. “Like everything, this will involve trade-offs in our product, and it will likely mean the rest of our community will grow more slowly than it otherwise would have. But it should also mean that our services become stronger for young adults.”

Zuckerberg said the shift would take “years, not months.”

That change and others Zuckerberg mentioned, including refreshing Facebook and Instagram to put an emphasis on video and leaning into its Reels short video product, would make the platform more similar to TikTok and go after an important part of its user base. Zuckerberg pointed to TikTok as one of the most formidable competitors it’s seen.

Facebook often brings up TikTok’s rapid growth when faced with questions about its own vast power, which is the subject of an antitrust complaint brought by the Federal Trade Commission. The FTC has accused Facebook of illegally maintaining a monopoly in the personal social networking space, in part through its acquisitions of Instagram and WhatsApp.

Several reports from the leaked documents showed Facebook has increasingly worried about the lack of engagement on its main platform among younger users, which would create an existential threat to its future. Still, the focus on young adults, rather than teens under 18, could ease pressure from lawmakers and others who have warned Facebook against making a version of its products for kids.

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Cryptocurrencies rise to start the week, bitcoin jumps above $102,000

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January 6, 2025

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Cryptocurrencies rise to start the week, bitcoin jumps above 2,000

The photo illustration shows the Bitcoin cryptocurrency on November 12, 2024 in Shanghai, China.

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The price of bitcoin leapt back above $100,000 to start the first full trading week of the new year.

The flagship cryptocurrency was last higher by about 4% at $102,234, according to Coin Metrics. The broader crypto market, as measured by the CoinDesk 20 index, gained more than 3%. Bitcoin and ether are coming off their best weeks since Dec. 6, while Solana had its best week since Nov. 22.

“Overall, we are in a bullish environment and traders appear to be risk-on as we head into the new year,” Mario Jurina, CEO at crypto swaps platform Jumper.Exchange. “With Trump’s election set to be certified today, and January often being a bullish month — six of the past 10 years saw positive price action — it’s no wonder markets are moving upward.”

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Bitcoin rises above $100,000 to start the week

The moves in crypto coincided with a rebound in tech stocks as Nvidia and shares of other chip names jumped. The tech-heavy Nasdaq was last higher by about 1.7%.

Crypto stocks Coinbase and MicroStrategy advanced nearly 6% and 5%, respectively. MicroStrategy Monday morning reported it has purchased another 1,070 bitcoins for about $101 million, bringing its total bitcoin holdings to 447,470.

Activity is coming back into the crypto market after a post-election rally that was driven by promises of a more supportive regulatory environment. The optimism sent prices rocketing for weeks before cooling at the end of the year. The price of bitcoin is expected to roughly double under the new administration this year, with some price predictions, like Fundstrat’s Tom Lee’s, being as high as $250,000.

Don’t miss these cryptocurrency insights from CNBC Pro:

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Amazon’s Ring announces smart smoke alarm as CES tech palooza kicks off

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January 6, 2025

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Amazon's Ring announces smart smoke alarm as CES tech palooza kicks off

Ring security cameras are displayed on a shelf at a Target store on June 01, 2023 in Novato, California. 

Justin Sullivan | Getty Images

Amazon‘s Ring is partnering with fire safety product maker Kidde to launch a connected smoke alarm, the company announced Monday at the Consumer Electronics Show in Las Vegas.

The companies plan to launch Kidde smoke and carbon monoxide alarms that integrate Ring’s home security technology and can deliver alerts to the Ring mobile app. The Kidde Smart Smoke Alarm with Ring will cost $54.97, while the Kidde Smart Smoke and CO Alarm with Ring will cost $74.97. Both products will ship in April.

As part of the launch, Ring will also roll out a $5-per-month subscription service that gives users access to round-the-clock professional monitoring and emergency dispatchers.

Amazon acquired Ring in 2015 for a reported $1 billion. The home security company is primarily known for its video doorbell devices, which allow users to record activity in front of their homes, though it has expanded to include a portfolio of products ranging from camera-equipped floodlights to flying security camera drones.

Amazon doesn’t disclose unit sales for its Ring division, but Ring and rival home security company SimpliSafe comprise one-fifth of the U.S. market for professional monitoring systems, according to data from market research firm Parks Associates. Ring CEO Liz Hamren, who took the helm from founder Jamie Siminoff in March 2023, told Bloomberg last May that the company “recently” became profitable.

Users aren’t required to subscribe to Ring Home, the company’s program that enables video recording storage and other security features, in order to access the new smoke alarm service.

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Global chip stocks climb as Foxconn’s bumper results show a continuation of the AI boom

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January 6, 2025

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Global chip stocks climb as Foxconn's bumper results show a continuation of the AI boom

Jakub Porzyck | Nurphoto | Getty Images

Global semiconductor stocks climbed on Monday after contract electronics giant Foxconn announced record fourth-quarter revenues, suggesting the artificial intelligence boom has far more room to run.

Hon Hai Precision Industry, which does business as Foxconn internationally, said in a Sunday statement that the company’s fourth-quarter revenue totaled 2.1 trillion New Taiwan dollars ($63.9 billion), growing 15% year-over-year.

Foxconn — which is a supplier to Apple — also set a record, posting the highest fourth-quarter revenue ever in company history, according to the statement.

The firm’s bumper revenue performance was driven by growth in its cloud and networking products — which includes AI servers like those designed by the likes of chipmaker Nvidia — and components and other products segments.

Computing products and smart consumer electronics — which numbers iPhone and other smartphones — saw “slight declines,” Foxconn said.

Shares of several semiconductor firms across Asia, Europe and the U.S. rose, as a result.

In Asia, TSMC hit a record high Monday and closed 1.9% higher in Taiwan.

The largest semiconductor manufacturer globally, TSMC produces chips for the likes of AMD and Nvidia.

Other Asian chip firms also logged share price gains — South Korea’s SK Hynix and Samsung rose nearly 10% and 4%, respectively.

In Europe, globally critical semiconductor equipment firm ASML saw its shares jump almost 6%, while fellow Dutch chip company ASMI’s stock rose almost 5%. Germany’s Infineon surged more than 6%.

The momentum in semi stocks could last as they have great earnings momentum, says Jim Cramer

Paris-listed shares of European contract chipmaker STMicroelectronics rose nearly 6%.

Stateside, Nvidia got a boost from the Foxconn numbers, climbing 2% in U.S. premarket trading.

Also boosting chip stocks on Monday was Microsoft’s announcement at the end of last week about plans to invest $80 billion in 2025 on data centers that can handle AI workloads.

Microsoft is one of several tech giants splurging on GPUs (graphics processing units) from Nvidia to train and run the most advanced AI models.

AMD, Nvidia’s closest rival, rose 3% in pre-market trading Monday, while fellow U.S. chip firms Qualcomm and Broadcom both climbed almost 2%.

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