Voters cast their mail-in ballots at a ballot drop box outside Maricopa County Recorder and Elections Department southeast Mesa office during the Arizona state primary election in Mesa, Arizona, U.S. July 30, 2024.
Rebecca Noble | Reuters
Derek Bowens has never had such an important job. He’s the director of elections in Durham County, North Carolina, one of the most-populous areas of a state that’s increasingly viewed as crucial to the 2024 presidential contest.
So when a former precinct official emailed Bowens in July to warn him of a post containing voting misinformation that was spreading virally on Facebook, Bowens quickly recognized that he may be facing a crisis.
The post, written as if from an authority on the subject, said voters should request new ballots if a poll worker, or anyone else, writes anything on their form, because it would be invalidated. The same incorrect message was spread on Facebook during the 2020 election, but the platform flagged the content at the time as “false information” and linked to a story that debunked the rumor by Facebook’s fact-checking partner, USA Today.
Bowens said no such tag appeared on the post, which was widespread enough that the North Carolina State Board of Elections had to issue a press release on Aug. 2, informing voters that false “posts have been circulating for years and have resurfaced recently in many N.C. counties.”
“It was spreading and there wasn’t anything happening to stop it until our state put out a press release and we started engaging with our constituency on it,” Bowens told CNBC in an interview.
The elections board wrote a post on Facebook, telling voters to “steer clear of false and misleading information about elections,” with a link to its website. As of Wednesday, the post had eight comments and 50 shares. Meanwhile, multiple Facebook users in states like North Carolina, Mississippi and New Jersey continue to share the ballot misinformation without any notification that it’s false.
CNBC flagged posts with the false information to Meta. A company spokesperson said, “Meta has sent them to third-party fact-checkers for further review.”
Across the U.S., with 40 days until the Nov. 5 election, state and local officials say they are puzzled by what to expect from Facebook. Like in the past two presidential election cycles, the spread of misinformation on the social network has threatened to disrupt voting in what’s expected to be another razor-thin contest decided by thousands of voters in a handful of states. Recently, a Facebook post containing a false claim about Haitian immigrants eating pets in Springfield, Ohio, ballooned out of control and gained resonance after it was repeated by Republican nominee Donald Trump in a debate.
In 2016, Facebook was hammered by Russian operatives, pushing out false posts about Hillary Clinton to bolster Trump. In 2020, the site hosted rampant misinformation about politically charged issues like Covid treatments, masking and voter fraud.
The big difference this go-round is that Facebook has largely removed itself from the equation. In 2021, Meta began pushing political and civic content lower in its algorithms, which contributed to a dramatic decline in news traffic last year for publishers. Earlier this year, Meta announced that it would deprioritize the recommendation of political content on Instagram and its Twitter-like Threads service, a move the company said more aligns with what consumers want to see on their feeds.
Still, posts with false information can spread rapidly across wide swaths of users along with comments that amplify the misinformation, and government agencies have little ability to counteract them, because they have such limited reach on the platform.
And while Facebook has lost some of its prominence due in part to the rise of TikTok, particularly among younger audiences, the site still had more than 200 million daily users in the U.S. and Canada at the end of last year, the last time it issued regional numbers. Facebook and Instagram are generally both in the top 10 among the most-visited websites and most-popular apps in the U.S, according to the Pew Research Center and Similarweb.
Interviews with nearly a dozen regional and statewide government officials with election-related duties reveal the challenges they say they’re having using and monitoring Meta’s apps, as well as other social networking services like X, now owned by Elon Musk. The officials say they’re working overtime to ensure the safety and integrity of the election but say they’re receiving little effective help from the companies, which scaled back their trust and safety teams as part of broader cost-cutting efforts that began in 2022.
Meta ultimately cut 21,000 jobs, including in trust and safety and customer service, over multiple rounds of layoffs. As CNBC reported last year, the company dissolved a fact-checking tool that would have let news services like The Associated Press and Reuters, as well as credible experts, add comments at the top of questionable articles as a way to verify their trustworthiness. Reuters is still listed as a fact-checking partner, but an AP spokesperson said the news agency’s “fact-checking agreement with Meta ended back in January.”
The Meta spokesperson told CNBC in a statement that the company’s “integrity efforts continue to lead the industry and we have around 40,000 people globally working on safety and security — more than we had during the 2020 cycle.” The company says it now partners with about 100 third-party fact-checking groups across the globe “who review and rate viral misinformation in more than 60 languages.”
Challenges in Maricopa County
Like North Carolina, Arizona is one of the seven swing states expected to determine whether Trump or Vice President Kamala Harris, the Democratic nominee, win the presidency.
That reality has put Taylor Kinnerup in the spotlight. Kinnerup is the communications director for the recorder’s office of Maricopa County, home to more than half of Arizona’s population.
Kinnerup and her colleagues use social media to distribute up-to-date information about election-related procedures, like when residents can mail in early ballots or where to find their voting center. It’s a particularly sensitive job following Trump’s false claims of voter fraud in Arizona in 2020, when the state went blue for the first time in a presidential contest since 1996.
Given Maricopa County’s high profile during the election season, the state often attracts attention from Facebook users across the country. Many of them, Kinnerup said, are older and still leave comments about debunked conspiracy theories, such as the false claim that Sharpie markers invalidate ballots.
Kinnerup said her team places “extreme emphasis on constant communication and transparency to the public,” actively sharing election-related content across Facebook and Instagram, particularly during peak hours when it’s more likely to reach voters.
A few months ago, Kinnerup discovered that her office’s Facebook and Instagram accounts were no longer linked, meaning she couldn’t access the apps using the same credentials, or automatically schedule a single post to go across both sites.
Ahead of the primary elections in July, Kinnerup said she struggled to resolve the account issues with Meta. She said she engaged in a monthslong email exchange with numerous representatives, but found there was “no way to really make progress.” When she did get a response, it was little more than a canned statement, Kinnerup said.
Meanwhile, Kinnerup is busy overseeing media and constituent tours of the county’s election facilities to help dispel false notions that the process is being rigged as her office continues to deal with the fallout of the 2020 election. Kinnerup said she led more than 20 such tours in June.
“I couldn’t be dealing with Meta every single day, because I had to be giving tours,” Kinnerup said. The time spent trying to find a fix “was a huge issue for me,” she said.
By the time Kinnerup said she’d resolved her account issues, in mid-July, she and her colleagues had wasted countless hours on the problem, leaving her team to “feel we were put in a position where the full message we were trying to get out wasn’t ever fully there.”
Even with her office’s Facebook and Instagram accounts working again, Kinnerup says their organic social media posts generate little engagement, and her team has used sponsored ads to help expand reach across the platforms. Her team has continued with the facility tours, leading 25 this month.
Meta’s spokesperson said the company has been hosting training sessions for state and local officials since February, informing them of tools like voting alerts, which allow them to send messages to people in their area.
Former US President and Republican presidential candidate Donald Trump leaves at the end of a presidential debate with US Vice President and Democratic presidential candidate Kamala Harris at the National Constitution Center in Philadelphia, Pennsylvania, on September 10, 2024.
Saul Loeb | AFP | Getty Images
“There are multiple channels by which officials can reach us, including teams responsible for specific states and regions, and our ability to respond to them remains unchanged,” the spokesperson said.
Kinnerup said she was not “aware of any of this,” and in her year in the role has “never received any direct communication with Meta that I’m aware of.”
Bowens told CNBC in a follow-up email that he “was not aware of the sessions or the tools.”
Congress is well aware of potential problems. During a Senate hearing last week on election threats, Meta’s head of global affairs, Nick Clegg, fielded questions about the company’s election preparedness. Sen. Susan Collins, R-Maine, expressed concern about the safety and integrity of “down-ballot races at the state level, county level, local level.”
Intelligence agencies, Collins said, have told senators that bad actors from China could be focusing on disrupting regional races as opposed to the presidential election, and that state and regional officials “are far less likely to receive the kinds of briefings that we receive or to get information from Homeland Security or the FBI on how to be on alert.”
Clegg said Collins was “right to be concerned” and that Meta’s “vigilance needs to be constant.”
“It can’t just sort of peak at the time of the presidential elections,” Clegg said.
‘Three people will see it’
For Scott McDonell, the Dane County clerk in the swing state of Wisconsin, it’s been difficult to share accurate voting information on Facebook from his office’s official government account, which only has 608 followers on Facebook. McDonell said his posts get very little traction compared with years past.
“If I link to a story about election security, three people will see it,” McDonell said. Posts that include pictures do marginally better, he said, because “Facebook likes pictures.”
“Don’t link to an article, that will go to zero,” he said.
McDonell said many of his colleagues have “gotten abused” so much on Facebook in recent years that they don’t post about elections anymore.
“Basically, your average county clerk is terrified of it, and they just do it to share baby photos,” McDonell said.
In Los Angeles County, Jeramy Gray, the chief deputy of the registrar-recorder/county clerk office, said small government offices often lack the resources needed to effectively utilize social media and to troubleshoot problems.
Meta “recently put a team together to assist” his office, Gray said, adding that the company appears to be the “most mature” of the big platforms even if it’s not a “model partner.”
“What I would like to see is just more engagement from them, at least three to four months from a large national election, for them to reach out to key stakeholders at the state and local level to really talk about what they can do or what they’re doing,” Gray said.
Bowens, in North Carolina’s Durham County, said the tech platforms could be much more helpful in assisting his office and others as they navigate through some of the confusion about what type of content is acceptable.
Bowens said he’s concerned about acting too aggressively because of potential censorship issues and recognizes there’s a gray area between misinformation and citizens exercising their First Amendment rights.
“You know, we’ve got a very diverse election system in this country,” Bowens said. “What was on that post may very well be true in another state. Therefore, is it misinformation?”
Startup Figure AI is developing general-purpose humanoid robots.
Figure AI
Figure AI, an Nvidia-backed developer of humanoid robots, was sued by the startup’s former head of product safety who alleged that he was wrongfully terminated after warning top executives that the company’s robots “were powerful enough to fracture a human skull.”
Robert Gruendel, a principal robotic safety engineer, is the plaintiff in the suit filed Friday in a federal court in the Northern District of California. Gruendel’s attorneys describe their client as a whistleblower who was fired in September, days after lodging his “most direct and documented safety complaints.”
The suit lands two months after Figure was valued at $39 billion in a funding round led by Parkway Venture Capital. That’s a 15-fold increase in valuation from early 2024, when the company raised a round from investors including Jeff Bezos, Nvidia, and Microsoft.
In the complaint, Gruendel’s lawyers say the plaintiff warned Figure CEO Brett Adcock and Kyle Edelberg, chief engineer, about the robot’s lethal capabilities, and said one “had already carved a ¼-inch gash into a steel refrigerator door during a malfunction.”
The complaint also says Gruendel warned company leaders not to “downgrade” a “safety road map” that he had been asked to present to two prospective investors who ended up funding the company.
Gruendel worried that a “product safety plan which contributed to their decision to invest” had been “gutted” the same month Figure closed the investment round, a move that “could be interpreted as fraudulent,” the suit says.
The plaintiff’s concerns were “treated as obstacles, not obligations,” and the company cited a “vague ‘change in business direction’ as the pretext” for his termination, according to the suit.
Gruendel is seeking economic, compensatory and punitive damages and demanding a jury trial.
Figure didn’t immediately respond to a request for comment. Nor did attorneys for Gruendel.
The humanoid robot market remains nascent today, with companies like Tesla and Boston Dynamics pursuing futuristic offerings, alongside Figure, while China’s Unitree Robotics is preparing for an IPO. Morgan Stanley said in a report in May that adoption is “likely to accelerate in the 2030s” and could top $5 trillion by 2050.
Concerns about stock valuations in companies tied to artificial intelligence knocked the market around this week. Whether these worries will recede, as they did Friday, or flare up again will certainly be something to watch in the days and weeks ahead. We understand the concerns about valuations in the speculative aspects of the AI trade, such as nuclear stocks and neoclouds. Jim Cramer has repeatedly warned about them. But, in the past week, the broader AI cohort — including real companies that make money and are driving what many are calling the fourth industrial revolution — has been getting hit. We own many of them: Nvidia and Broadcom on the chip side, and GE Vernova and Eaton on the derivative trade of powering these energy-gobbling AI data centers. That’s not what should be happening based on their fundamentals. Outside of valuations, worries also center on capital expenditures and the depreciation that results from massive investments in AI infrastructure. On this point, investors face a choice. You can go with the bears who are glued to their spreadsheets and extrapolating the usable life of tech assets based on history, a seemingly understandable approach, and applying those depreciation rates to their financial models, arguing the chips should be near worthless after three years. Or, you can go with the commentary from management teams running the largest companies driving the AI trade, and what Jim has gleaned from talking with the smartest CEOs in the world. When it comes to the real players driving this AI investment cycle, like the ones we’re invested in, we don’t think valuations are all that high or unreasonable when you consider their growth rates and importance to the U.S., and by extension, the global economy. We’re talking about Nvidia CEO Jensen Huang, who would tell you that advancements in his company’s CUDA software have extended the life of GPU chip platforms to roughly five to six years. Don’t forget, CoreWeave recently re-contracted for H100s from Nvidia, which were released in late 2022. The bears with their spreadsheets would tell you those chips are worthless. However, we know that H100s have held most of their value. Or listen to Lisa Su, CEO of Advanced Micro Devices , who said last week that her customers are at the point now where “they can see the return on the other side” of these massive investments. For our part, we understand the spending concerns and the depreciation issues that will arise if these companies are indeed overstating the useful lives of these assets. However, those who have bet against the likes of Jensen Huang and Lisa Su, or Meta Platforms CEO Mark Zuckerberg, Microsoft CEO Satya Nadella, and others who have driven innovation in the tech world for over a decade, have been burned time and again. While the bears’ concerns aren’t invalid, long-term investors are better off taking their cues from technology experts. AI is real, and it will increasingly lead to productivity gains as adoption ramps up and the technology becomes ingrained in our everyday lives, just as the internet has. We have faith in the management teams of the AI stocks in which we are invested, and while faith is not an investment strategy, that faith is based on a historical track record of strong execution, the knowledge that offerings from these companies are best in class, and scrutiny of their underlying business fundamentals and financial profiles. Siding with these technology expert management teams, over the loud financial expert bears, has kept us on the right side of the trade for years, and we don’t see that changing in the future. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust, including NVDA, AVGO, GEV, ETN, META, MSFT.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets: The S & P 500 bounced back Friday, recovering from the prior session’s sharp losses. The broad-based index, which was still tracking for a nearly 1.5% weekly decline, started off the session a little shaky as Club stock Nvidia drifted lower after the open. It was looking like concerns about the artificial intelligence trade, which have been dogging the market, were going to dominate back-to-back sessions. But when New York Federal Reserve President John Williams suggested that central bankers could cut interest rates for a third time this year, the market jumped higher. Rate-sensitive stocks saw big gains Friday. Home Depot rose more than 3.5% on the day, mitigating a tough week following Tuesday’s lackluster quarterly release. Eli Lilly hit an all-time high, becoming the first drugmaker to reach a $1 trillion market cap. TJX also topped its all-time high after the off-price retailer behind T.J. Maxx, Marshalls, and HomeGoods, delivered strong quarterly results Wednesday. Carry trade: We’re also monitoring developments in Japan, which is dealing with its own inflation problem and questions about whether to resume interest rate hikes. That brings us to the popular Japanese yen carry trade, which is getting squeezed as borrowing costs there are rising. The yen carry trade involves borrowing yen at a low rate, then converting them into, say, dollars, and investing in higher-yielding foreign assets. That’s all well and good when the cost to borrow yen is low. It’s a different story now that borrowing costs in Japan are hitting 30-year highs. When rates rise, the profit margin on the carry trade gets crunched, or vanishes completely. As a result, investors need to get out, which means forced selling and price action that becomes divorced from fundamentals. It’s unclear if any of this is adding pressure to U.S. markets. We didn’t see anything in the recent quarterly earnings reports from U.S. companies to suggest corporate fundamentals are deteriorating in any meaningful way. That’s why we’re looking for other potential external factors, alongside the well-known concerns about artificial intelligence spending, the depreciation resulting from those capital expenditures, and general worries about consumer sentiment and inflation here in America. Wall Street call: HSBC downgraded Palo Alto Networks to a sell-equivalent rating from a hold following the company’s quarterly earnings report Wednesday. Analysts, who left their $157 price target unchanged, cited decelerating sales growth as the driver of the rerating, describing the quarter as “sufficient, not transformational.” Still, the Club name delivered a beat-and-raise quarter, which topped estimates across every key metric. None of this stopped Palo Alto shares from falling on the release. We chalked the post-earnings decline up to high expectations heading into the quarter, coupled with investor concerns over a new acquisition of cloud management and monitoring company Chronosphere. Palo Alto is still working to close its multi-billion-dollar acquisition of identity security company CyberArk , announced in July. HSBC now argues the stock’s risk-versus-reward is turning negative, with limited potential for upward estimate revisions for fiscal years 2026 and 2027. We disagree with HSBC’s call, given the momentum we’re seeing across Palo Alto’s businesses. The cybersecurity leader is dominating through its “platformization” strategy, which bundles its products and services. Plus, Palo Alto keeps adding net new platformizations each quarter, converting customers to use its security platform, and is on track to reach its fiscal 2030 target. We also like management’s playbook for acquiring businesses just before they see an industry inflection point. With Chronosphere, Palo Alto believes the entire observability industry needs to change due to the growing presence of AI. We’re reiterating our buy-equivalent 1 rating and $225 price target on the stock. Up next: There are no Club earnings reports next week. Outside of the portfolio, Symbotic, Zoom Communications , Semtech , and Fluence Energy will report after Monday’s close. Wall Street will also get a slew of delayed economic data during the shortened holiday trading week. U.S. retail sales and September’s consumer price index are scheduled for release early Tuesday. Durable goods orders and the Conference Board consumer sentiment are released on Wednesday morning. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.