Month: August 2018

07 Aug 2018

Snapchat shrinks by 3M users to 188M despite Q2 earnings beat

The Stories War has officially killed Snapchat’s growth. In Q2 2018 earnings today, Snapchat’s daily user count shrank 1.5 pecent percent to 188 million this quarter, down from 191 million and positive 2.9 percent user growth last quarter.

Snapchat did beat earnings expectations with $262.3 million in revenue and a loss of $0.14 while Wall Street estimated an EPS loss of $0.17 with $249.8 million in revenue. Snap’s net loss dereased by 20 percent year-over-year, so it only destroyed $353 million this quarter compared to $385 million last quarter.

Despite its shrinking user count, the improvement to revenue (up 44 percent year-over-year) and reduced losses led Wall Street to boost Snap’s share price 11 percent in after-hours trading to around $14.60 after it closed at $13.12

Snapchat is coming off of a disatrous Q1 earnings with its slowest ever user growth rate that led to a 24 percent plunge in its share price in May. But the company has been highly volatile, seeing a 37 percent boost in its share price after surprisingly positive Q4 2017 earnings. Now it’s proving that Facebook isn’t the only social network with growth troubles.

In hopes of distracting from the shrinking DAUs, Snapchat shared a monthly active user count for the first time: 100 million monthly active users in the US and Canada. Snap says this is the highest it’s ever been, yet the reveal highlights that teens are as addicted to daily Snapchat use as they once were. DAUs are a much more accurate way of measuring engagement and ad revenue potential, as opening a single notification and never returning can still register someone as an MAU.

The quarter saw Snapchat escape much of the scrutiny facing other social networks regarding fake news and election interference. Snapchat started running unskippable ads in its Shows that could be a big money maker if extended to Stories. It began experimenting with ecommerce in earnest, allowing brands to sell things people can buy without leaving the app. It also opened self-serve buying of its augmented reality lens ads that people not only post, but play with for extended periods of time. And it launched its privacy-safe Snap Kit developer platform in hopes that alliances and referral traffic would help revive its user growth.

But problematically, its competitors like Instagram Stories continued to surge, with it now having 400 million daily Stories users and WhatsApp Status now having 450 million. Combined, Facebook has over 1.1 billion daily (duplicated) Stories users across its family of apps. That reach could make it tough for Snap to compete for ad dollars. And with its user count actually decreasing, that could make for a grim future for the teen sensation.

07 Aug 2018

Oracle launches autonomous database for online transaction processing

Oracle executive chairman and CTO, Larry Ellison, first introduced the company’s autonomous database at Oracle Open World last year. The company later launched an autonomous data warehouse. Today, it announced the next step with the launch of the Oracle Autonomous Transaction Processing (ATP) service.

This latest autonomous database tool promises the same level of autonomy — self-repairing, automated updates and security patches and minutes or less of downtime a month. Juan Loaiza SVP for Oracle Systems at the database giant says the ATP cloud service is a modernized extension of the online transaction processing databases (OLTP) they have been creating for decades. It has machine learning and automation underpinnings, but it should feel familiar to customers, he says.

“Most of the major companies in the world are running thousands of Oracle databases today. So one simple differentiation for us is that you can just pick up your on-premises database that you’ve had for however many years, and you can easily move it to an autonomous database in the cloud,” Loaiza told TechCrunch.

He says that companies already running OLTP databases are ones like airlines, big banks and financial services companies, online retailers and other mega companies who can’t afford even a half hour of downtime a month. He claims that with Oracle’s autonomous database, the high end of downtime is 2.5 minutes per month and the goal is to get much lower, basically nothing.

Carl Olofson, an IDC analyst who manages IDC’s database management practice says the product promises much lower operational costs and could give Oracle a leg up in the Database as a Service market. “What Oracle offers that is most significant here is the fact that patches are applied without any operational disruption, and that the database is self-tuning and, to a large degree, self-healing. Given the highly variable nature of OLTP database issues that can arise, that’s quite something,” he said.

Adam Ronthal, an analyst at Gartner who focuses on the database market, says the autonomous database product set will be an important part of Oracle’s push to the cloud moving forward. “These announcements are more cloud announcements than database announcements. They are Oracle coming out to the world with products that are built and architected for cloud and everything that implies — scalability, elasticity and a low operational footprint. Make no mistake, Oracle still has to prove themselves in the cloud. They are behind AWS and Azure and even GCP in breadth and scope of offerings. ATP helps close that gap, at least in the data management space,” he said.

Oracle certainly needs a cloud win as its cloud business has been heading in the wrong direction the last couple of earnings report to the point they stopped breaking out the cloud numbers in the June report.

Ronthal says Oracle needs to gain some traction quickly with existing customers if it’s going to be successful here. “Oracle needs to build some solid early successes in their cloud, and these successes are going to come from the existing customer base who are already strategically committed to Oracle databases and are not interested in moving. (This is not all of the customer base, of course.) Once they demonstrate solid successes there, they will be able to expand to net new customers,” he says.

Regardless how it works out for Oracle, the ATP database service will be available as of today.

07 Aug 2018

Elon Musk explains why taking Tesla private is ‘the best path forward’

Earlier today, Tesla CEO Elon Musk tweeted about how he’s considering taking Tesla private. Now, Tesla has published an email Musk sent to employees today that describes his rationale. However, no decision has been made yet, Musk wrote in the email.

Musk says it’s “the best path forward” because taking Tesla private would help minimize some of the distractions that come as a result of “wild swings in our stock price.” Going private would also enable Tesla to make decisions that are best for the long-term, rather than the short-term, he said.

“Finally, as the most shorted stock in the history of the stock market, being public means that there are large numbers of people who have the incentive to attack the company,” Musk wrote in the email.

He later adds, “This proposal to go private would ultimately be finalized through a vote of our shareholders. If the process ends the way I expect it will, a private Tesla would ultimately be an enormous opportunity for all of us.”

Following Musk’s tweet announcing his desire to take Tesla private, Tesla shares jumped before getting halted on the stock exchange. Tesla shares have since reopened.

You can read the full email below.

Earlier today, I announced that I’m considering taking Tesla private at a price of $420/share. I wanted to let you know my rationale for this, and why I think this is the best path forward.

First, a final decision has not yet been made, but the reason for doing this is all about creating the environment for Tesla to operate best. As a public company, we are subject to wild swings in our stock price that can be a major distraction for everyone working at Tesla, all of whom are shareholders. Being public also subjects us to the quarterly earnings cycle that puts enormous pressure on Tesla to make decisions that may be right for a given quarter, but not necessarily right for the long-term. Finally, as the most shorted stock in the history of the stock market, being public means that there are large numbers of people who have the incentive to attack the company.

I fundamentally believe that we are at our best when everyone is focused on executing, when we can remain focused on our long-term mission, and when there are not perverse incentives for people to try to harm what we’re all trying to achieve.

This is especially true for a company like Tesla that has a long-term, forward-looking mission. SpaceX is a perfect example: it is far more operationally efficient, and that is largely due to the fact that it is privately held. This is not to say that it will make sense for Tesla to be private over the long-term. In the future, once Tesla enters a phase of slower, more predictable growth, it will likely make sense to return to the public markets.

Here’s what I envision being private would mean for all shareholders, including all of our employees.

First, I would like to structure this so that all shareholders have a choice. Either they can stay investors in a private Tesla or they can be bought out at $420 per share, which is a 20% premium over the stock price following our Q2 earnings call (which had already increased by 16%). My hope is for all shareholders to remain, but if they prefer to be bought out, then this would enable that to happen at a nice premium.

Second, my intention is for all Tesla employees to remain shareholders of the company, just as is the case at SpaceX. If we were to go private, employees would still be able to periodically sell their shares and exercise their options. This would enable you to still share in the growing value of the company that you have all worked so hard to build over time.

Third, the intention is not to merge SpaceX and Tesla. They would continue to have separate ownership and governance structures. However, the structure envisioned for Tesla is similar in many ways to the SpaceX structure: external shareholders and employee shareholders have an opportunity to sell or buy approximately every six months.

Finally, this has nothing to do with accumulating control for myself. I own about 20% of the company now, and I don’t envision that being substantially different after any deal is completed.

Basically, I’m trying to accomplish an outcome where Tesla can operate at its best, free from as much distraction and short-term thinking as possible, and where there is as little change for all of our investors, including all of our employees, as possible.

This proposal to go private would ultimately be finalized through a vote of our shareholders. If the process ends the way I expect it will, a private Tesla would ultimately be an enormous opportunity for all of us. Either way, the future is very bright and we’ll keep fighting to achieve our mission.

Thanks,
Elon

07 Aug 2018

Net neutrality activists, not hackers, crashed the FCC’s comment system

An unprecedented flood of citizens concerned about net neutrality is what took down the FCC’s comment system last May, not a coordinated attack, a report from the agency’s Office of the Inspector General concluded. The report unambiguously describes the “voluminous viral traffic” resulting from John Oliver’s Last Week Tonight segment on the topic, along with some poor site design, as the cause of the system’s collapse.

Here’s the critical part:

The May 7-8, 2016 degradation of the FCC’s ECFS was not, as reported to the public and to Congress, the result of a DDoS attack. At best, the published reports were the result of a rush to judgment and the failure to conduct analyses needed to identify the true cause of the disruption to system availability. Rather than engaging in a concerted effort to understand better the systematic reasons for the incident, certain managers and staff at the Commission mischaracterized the event to the Office of the Chairman as resulting from a criminal act, rather than apparent shortcomings in the system.

Although FCC leadership preemptively responded to the report yesterday, the report itself was not published until today. The OIG sent it to TechCrunch this morning, and you can find the full document here.

The approximately 25 pages of analysis (and 75 more of related documents, some of which are already public) relate specifically to the “Event” of May 7-8 last year and its characterization by the office of the Chief Information Officer, at the time David Bray. The investigation was started on June 21, 2017. The subsequent handling of the event under public and Congressional inquiry is not included in the scope of this investigation.

As the report notes, Bray shortly after the event issued a press release describing the system’s failure as “multiple distributed denial-of-service attacks.” A variation on this was the line going forward, even well after Bray left in October 2017.

However, internal email conversations and analysis of the traffic logs reveal that this characterization of the event was severely mistaken.

Here it ought to be said that in the chaos of the moment and with incomplete time and information, an accurate diagnosis of a major systematic failure is generally going to be an educated guess at first — so we mustn’t judge Bray and his office too harshly for its mistake, at least in the immediate aftermath.

But what becomes clear from the OIG’s investigation is that the DDoS narrative first advanced by Bray is not backed up by the evidence. Their own analysis of the logs clearly shows that the spikes in traffic correlate directly with activity from John Oliver’s Last Week Tonight, which that evening and the following morning posted tweets and videos that garnered an immense amount of traffic and directed it at the FCC’s comment system.

Chart showing traffic spikes correlating with John Oliver (JO) related events.

“These spikes in traffic are singular rather than sustained, that is, the unique IP addresses that visited the FCC domain and ECFS did not do so over a sustained period of time, at regular intervals (as would be expected during a DDoS),” the report explains in the caption for the graph above.

“The traffic observed during the incident was a combination of “flash crowd” activity and increased traffic volume resulting from [redacted] site design issues,” reads the report. I’ve asked for more detail on these design issues and how they contributed to the system’s failure.

Interestingly, it appears some at the FCC were aware that Oliver was planning a segment on net neutrality for that time period, but no one thought to brace for it. According to a colleague interviewed for the report, “Bray was furious that he had not been informed about the John Oliver episode.”

Email excerpts from the time of the event, collected by the FCC’s OIG.

In fact, however, even confronted with the fact that Oliver’s segment was likely directly driving traffic, Bray suggested that “trolls” and 4chan were the more likely culprit.

We’re 99.9% confident this was external folks deliberately trying to tie-up the server to prevent others from commenting and/or create a spectacle.

Jon Oliver invited the “trolls” – to include 4Chan (which is a group affiliated with Anonymous and the hacking community).

His video triggered the trolls. Normal folks cannot manually file a comment in less than a millisecond over and over and over again, so this was definitely high traffic targeting ECFS to make it appear unresponsive to others.

All this, and the description put in the press release and some subsequent communications, is “not accurate,” as the OIG put it.

As a result, “we determined the FCC, relying on Bray’s explanation of the events, misrepresented facts and provided misleading responses to Congressional inquiries related to this incident.”

It’s worth noting that this has already been looked at by federal prosecutors:

Because of the possible criminal ramifications associated with false statements to Congress, FCC OIG formally referred this matter to the Fraud and Public Corruption Section of the United States Attorney’s Office for the District of Columbia…On June 7, 2018, after reviewing additional information and interviews, USAO-DC declined prosecution.”

In a way, as Chairman Ajit Pai wrote yesterday, this does somewhat exonerate his office for its year-long campaign of stalling, half-truths, and outright refusals to answer questions. If they took Bray’s characterization as gospel, they had to stick to that analysis. Furthermore, with an investigation ongoing, what they could and couldn’t say was likely limited at the request of the OIG.

But that’s only a partial pardon. In the year and change since the event there has been ample time for reflection and revisiting of the data. Bray left in October; why did the new CIO not use the occasion to take a fresh look at a report that was plainly doubted by many in the agency?

The CIO’s office, as the report notes, never actually issued a substantive report showing that its DDoS narrative was true. And shortly after the event, it was, as one staffer put it, “common knowledge” that the analysis was flawed. This knowledge was arrived at through “further research” after the fact — but then it turned out no “further research” was conducted.

What kind of operation is this? Why was FCC leadership not foaming at the mouth asking for better information? The Chairman was under fire from all sides — no one bought the story he was selling — why not walk over to the CIO’s office, now rid of its Obama administration–tainted head (Pai mentioned this association twice in his statement yesterday), and demand answers?

Pai denies that he or his office was aware of these shortcomings and opted not to rectify them because they were advantageous to his plan to reverse 2015’s net neutrality rules. But how could such a demonstrably shoddy and undocumented analysis persist for so long, under such close scrutiny? This wasn’t a minor technical glitch unworthy of leadership’s attention. It was national news.

The optics of a confusing and incomplete DDoS report aren’t good. But the report, if it was wrong, as everyone seemed to consider it even day-of, could always be disavowed and its author blamed on Obama.

What’s worse are the optics of a wave of public opposition to a controversial proposal, so strong that it literally took down the system created — and recently upgraded! — to handle that kind of feedback. This narrative, of a flood of pro-net-neutrality commenters so large that not only did it break the system, but many of their comments were arguably unable to be posted and (notionally) included in the FCC’s analysis — that, my friends, is a bad look.

Although this investigation has concluded, another by the Government Accountability Office is ongoing and may have a wider scope. If not, however, it seems unthinkable that the FCC and its current leadership can walk away from this unscathed. Ultimately this entire debacle took place under Ajit Pai’s watch, and his handling of it is at best dubious. Citizens and no doubt elected officials are almost certain to ask hard questions — and this time, the Chairman might actually have to answer them.

07 Aug 2018

Apple Music users spot ‘Friends Mix,’ a new personalized playlist of friends’ tunes

Apple appears to be working on another personalized playlist for Apple Music subscribers – this time, one that shows you what your friends are listening to on its service, as opposed to a personalized playlist filled with editorial or algorithmic recommendations. The new “Friends Mix” playlist includes 25 songs and is updated on Mondays, according users who have gained access to this new feature and screenshots of the playlist’s description.

News of the playlist was first spotted by a user on Reddit, then reported by 9to5MacAppleInsider and several others, as a result.

Apple has not yet formally announced the addition, and many other Apple Music subscribers are not seeing the playlist at this time.

Apple has also not yet responded to a request for comment, so it’s unclear if the playlist is now rolling out or is something in testing. (This post will be updated with more information, as available.)

According to the original poster on Reddit, the playlist appeared in their Apple Music app on a device that was running iOS 12 beta – this could indicate it’s something that won’t launch to the public until the general release of iOS 12 later this fall.

The tester also noted they had just installed the iOS 12 beta, which could explain why they saw it first.

TC editor Matthew Panzarino, who’s also on the iOS 12 beta, now has the feature, as well. However, others here on the iOS 12 beta – and lower versions of iOS – do not yet.

 

Above: Friends playlist; image credit Reddit user reesyy

Personalized playlists are a key selling point for streaming music services, with Apple, Spotify, Amazon, Pandora, iHeartRadio and others all offering a variety of playlists for their subscribers. In Apple’s case, it already offers a handful of these, including “Favorites,” “New Music Mix,” and the latest addition, launched over a year ago, “Chill Mix.”

It’s long been time for Apple to expand its lineup of playlists further – especially given Spotify’s growing selection, which now includes its flagship playlist Discover Weekly, its Daily Mixes (plus a new variation, Your Daily Car Mix, apparently, Redditors also spotted), Release Radar, Your Summer Rewind, and Time Capsule.

[gallery ids="1687466,1687467"]

Above: More screenshots, including the playlist description: “A selection of songs based on what your friends have been listening to. Refreshed every Monday.”

However, the value of a playlist of your friends’ music is more questionable.

Though social music was Spotify’s original aim, through integrations with Facebook and tools to find and follow others, it has stepped away from that in later years. Instead, it’s more focused now on making the service feel individualized to each user – after all, your friends could be listening to some awfully terrible stuff. 

The arrival of the new playlist follows the recent news that Apple Music is leading Spotify in the North American market, announced by Apple CEO Tim Cook on the last earnings call. Cook also said Apple Music now tops well over 50 million current subscribers and free trial users; Spotify, by comparison, now has 83 million paying subscribers.

Do you have Friends Mix? If so, send me a screenshot noting your iOS version and when it appeared: sarahp@techcrunch.com. 

07 Aug 2018

CrunchMatch is open for business at Disrupt SF 2018

Holy smokes! Disrupt San Francisco 2018, which takes place September 5-7, is less than one month away. We have important news for anyone who purchased Startup Alley, Founder, Investor or Insider passes: CrunchMatch — your gateway to efficient networking — is officially open!

If you haven’t yet grabbed a pass to Disrupt SF 2018, it’s not too late to jump on the CrunchMatch train. Startup Alley, Founder and Investor passes are still available. Buy them right here.

Lest you’ve forgotten, CrunchMatch is the free business match-making service at Disrupt. Powered by Brella, this platform curates and connects early-stage startup founders and investors who share similar business interests and profiles.

The matching process is in full swing, so if you’re registered, keep your eyes peeled on your inbox for an invitation to create a CrunchMatch profile. For example, founders provide information about their early-stage startup — its tech category, funding stage, where it’s located and its current funding status. Investor profiles outline specific investment categories, the funding stage and preferred geographic locations. CrunchMatch takes all that information and works a bit of algorithmic voodoo to match compatible founders and investors based on the information they provide.

Once you receive those recommendations, the networking ball lands in your court. Send, receive, accept and decline invitations, set up appointment meetings and reserve private meeting space at the CrunchMatch meeting booth at Disrupt.

CrunchMatch also lets you act quickly in the heat of the moment. Say you see a particularly promising startup compete in Startup Battlefield. Use CrunchMatch to send an invitation and schedule a meeting in minutes. Boom! Hey, it worked for Michael Kocan, an early-stage investor at Trend Discovery.

“I get the most value from Disrupt at the intersection of CrunchMatch and Startup Battlefield. I can quickly schedule a meeting for later that day. I had over 35 meetings with startups that I pre-vetted using CrunchMatch, and I made a significant investment in one.”

He’s not the only satisfied customer. Last year at Disrupt SF 2017, CrunchMatch facilitated more than 1,300 meetings and 97 percent of participants said they’d use the service again. With more than 10,000 attendees coming to Disrupt SF 2018, we fully expect to triple the number of meetings.

Disrupt San Francisco 2018 takes place September 5-7. Be sure to fill out your profiles when you receive your invitation. Or buy your Founder or Investor passes now. You have only three days at Disrupt SF to make potentially life-changing connections. Let CrunchMatch simplify your networking — for free.

07 Aug 2018

MailChimp bans Alex Jones for hateful conduct

Another tech platform has closed the door on InfoWars’ Alex Jones . Mail messaging platform MailChimp first confirmed the move in a statement to US media watchdog Media Matters which said the accounts had been closed for “hateful conduct”. A MailChimp spokeswoman also confirmed it to TechCrunch via email.

In a statement MailChimp said it had terminated InfoWars’ and Jones’ accounts for ToS violations — adding that while it doesn’t usually comment on individual account closures it was making an exception in this case.

“We don’t allow people to use our platform to disseminate hateful content,” it wrote, adding: “We take our responsibility to our customers and employees seriously. The decision to terminate this account was thoughtfully considered and is in line with our company’s values.”

There has been something of a domino effect among tech companies in recent weeks over what to do about Jones/InfoWars, with Facebook, Apple and Google pulling content or shuttering Jones’ channels over ToS violations. Spotify, YouPorn and even Pinterest have also pulled his content for the same reasons. Although Twitter has not — saying Jones has not violated its rules.

Jones, a notorious conspiracy theorist, has peddled anti-truths on his own website for nearly two decades, but has raised his profile and gained greater exposure by using the reach of mainstream tech platforms and tools — enabling him to rabble rouse beyond a niche audience.

As well as spreading toxic disinformation on mainstream social networks, including targeting the victims of the Sandy Hook Elementary school shooting by falsely claiming the massacre was an elaborate hoax, Media Matters notes that Jones has regularly encouraged violence — expounding an impending second U.S. civil war narrative in which he discusses killing minorities.

Jones is spinning the recent tech platform bans as a ‘censorship war’ on him, even as hosting companies continue to provide a platform on the Internet for his website — where he continues to peddle his BS for anyone who wants to listen.

07 Aug 2018

Gmail for iOS and Android now lets you turn off conversation view

When Gmail launched with its threaded conversation view feature as the default and only option, some people sure didn’t like it and Google quickly allowed users to turn it off. On mobile, though, you were stuck with it. But here’s some good news for you conversation view haters: you can now turn it off on mobile, too.

The ability to turn off conversation view is now rolling out to all Gmail app users on iOS and Android . So if you want Gmail to simply show you all emails as they arrive, without grouping them to”make them easier to digest and follow,” you’re now free to do so.

If you’ve always just left conversation view on by default, maybe now is a good time to see if you like the old-school way of looking at your email better. I personally prefer conversation view since it helps me keep track of conversations (and I get too many emails already), but it’s pretty much a personal preference.

To make the change, simply tap on your account name in the Settings menu and look for the “conversation view” check box. That’s it. Peace restored.

07 Aug 2018

Anonymous vows to take down Q

A cheerful video released by YourAnonNews suggests that the murky hacker collective called Anonymous is now after the murky deep state collective called Q.

Q, to the uninitiated, is a 4Chan poster who claims to be connected deep inside the US government. Q claims to have high level clearance and posts in furtherance of the conspiracy theory that the government has been running massive pedophile ring and that Trump and Robert Mueller are working like Scooby Doo and Shaggy to bring it down. Sites like QAnon.pub are archives of Q’s cryptic and often ridiculous claims.

Support for the conspiracy most recently surfaced at multiple Trump rallies and the sayings – including the faintly ominous “Where We Go One, We Go All” – are appearing everywhere from placards to Roseanne Barr’s Twitter.

Anonymous, best known for attacking Scientology with its Project Chanology operation, is well-equipped to unmask and ridicule Q. When Q began, said Anonymous, they found their antics to be a bit of clever trolling. Then, when Q followers began threatening lives Anonymous decided they were dangerous.

“We were all like ‘Check this troll out.’ He has them convinced that he’s on the inside and they’re eating it up,” Anonymous said in their atypically comical video. After a bit of ribbing, however, Anonymous said they found much to dislike. “None of us are happy with your bullshit,” they wrote. “We gonna wreck you. We are Anonymous.”

07 Aug 2018

Elon Musk tweets he’s thinking about taking Tesla private

Tesla CEO Elon Musk is thinking about taking the company private, he said in a Tweet this morning. More specifically, he said he may buy back the company for $71.3 billion (at a share price of $420), and already has the funding to do so.

I’ve reached out to Tesla — given that this could just be Musk trolling all of us  — and will update this story if I hear back. Following the original tweet, Musk said he doesn’t have a controlling vote now and “wouldn’t expect any shareholder to have one if we go private.”

Musk’s hope, he later tweeted, is that “all current investors remain with Tesla even if we’re private. Would create special purpose fund enabling anyone to stay with Tesla. Already do this with Fidelity’s SpaceX investment.”

He also seems willing to have a provision for retail investors, who have held Tesla shares prior to Dec. 31, 2016, to convert their shares into private shares. Musk, in response to a tweet, said he’s “super appreciative of Tesla shareholders” and “will ensure their prosperity in any scenario.”

Musk’s original tweet came shortly after news broke that a Saudi Arabian sovereign wealth fund bought a $2 billion stake in Tesla. Tesla’s stock is currently rallying. It jumped as high as $371 and is currently trading around $359.

Whether this is appropriate disclosure under SEC rules is unclear, but it’s worth noting that it does allow companies to make certain announcements in specific circumstances on social media. The caveat is that investors must know to watch those channels for those announcements.

Back in 2012, Netflix CEO Reed Hastings announced Netflix subscribers passed one billion hours of content watched. The following year, the SEC announced that was ok to do and that Hastings did not violate Regulation Fair Disclosure, which requires companies to distribute information regarding their financial success in ways that are widely accessible.

Musk has a following of 22.3 million people on Twitter, while Hastings had just over 200,000 followers on Facebook at the time of his announcement. That’s just to say I could see how one could argue Musk has a large enough reach to not be in violation of Regulation FD. But, I’m also not the SEC, which was not available for comment at the time of publication.

Tesla’s stock has been rather volatile in the last year, trading as low as $244.59 in April and as high as $389.61 in September.

Developing…