Don't post this on Facebook

MARKETS

• U.S. markets: When Google loses, so does everyone else. The company's major spending plans spooked investors, who washed out $86.6 billion from FANG stocks. U.S. indexes fell across the board.
• Crypto: Bitcoin hit a six-week high.
• Earnings today: Facebook, Visa, AT&T, Boeing, Comcast, GSK, PayPal, Chipotle.

TECH

A First-Ever Look Inside Facebook's Content Policy

Before releasing earnings today, Facebook (-3.71%) clicked share on something investors have been champing at the bit for: a 27-page guideline for Facebook's content policy. Or, as Zuckerberg's rabbi calls it, ‘What's kosher to post on Facebook and what's not.'

And it's a pretty big deal: Just two weeks ago, lawmakers asked Zuckerberg what Facebook does to monitor content. To which Mark robotically answered—‘Senator, AI and human moderators sift through the content.'

But as it turns out, the answer is more complex
Facebook's Dream Team...hardly ever dreams. Nearly 7,600 moderators across 40 languages are working round-the-clock to ensure bad content gets the boot. The team includes human rights lawyers, rape counselors, and counterterrorism experts.

So while AI is sifting through billions of posts from Facebook's 2 billion monthly active users, it does flag some content for a manual review. After all, AI is smart, but not always smart enough to interpret pictures in the proper historical, religious, satirical, and emotional contexts that humans can. Point us.

So what exactly are they looking for?

Once again, it's complicated. Which is why this is the first time Facebook released guidelines.

For instance, here's what types of posts are not allowed...

• Violent threats, sexual violence, promoting terrorism
• Cannibalism, poaching endangered species
• Selling drugs, selling firearms
• Sexual content involving minors, instructions for self-injury

But not everything's so black and white—like when someone re-posted an iconic 1972 picture of a naked Vietnamese girl running from a napalm attack.

Content reviewers were presented with a tough decision: adhere to Facebook's policy of removing child nudity, or prioritize the historical significance of the picture.

The Crew's take: It's easy (and fair) to criticize Facebook for (1) a lack of transparency and (2) not effectively monitoring harmful or hateful content. It's much harder to step back and realize how challenging it is to police content that could be viewed a million different ways by a billion different people.

TECH

Amazon Wants to Deliver Packages—To Your Car

As part of its Amazon Key program, Amazon (-3.81%) is partnering with GM and Volvo to offer in-car delivery services.

Don't worry, a package won't be delivered while you're zooming down I-95 (at least not yet). Amazon is working with companies like OnStar to remotely unlock parked cars and drop off packages. And the strategy—currently available in 37 U.S. cities—could offer millions of new drop-off points to delivery drivers.

But Bezos thinks bigger than that

This is a subsection of a subsection of Amazon's plan for world domination to make consumers more comfortable with in-home (or in-car) services.

Just think: It's already offering in-home delivery services through Amazon Key, and it's working on a "secret" project to build robots for your home.

What's next? Amazon Bathroom Delivery. For those times you forget the toilet paper.

CONSUMER GOODS

Diet Coke Is Cool Again

This is your full-calorie recap of Coca-Cola's (-2.07%) zero-calorie triumph: For the first time in eight years, Diet Coke posted quarterly revenue growth in North America.

And that's no coincidence. In January, the beverage titan went back to the drawing board with Diet Coke, introducing slimmer, more colorful bottles and new flavors (like "Feisty Cherry" and "Twisted Mango").

For CEO James Quincey, the gamble was all about reaching young people.

• He told CNBC: "I think the team has done a great job in finding something that really catches people's attention, whether packaging, marketing or new flavors, which I think are more millennial relevant."
• What a millennial had to say: "Sure, man, whatever."

Zoom out: Coca-Cola is still facing a few challenges:

• A British "soda tax" on sugary drinks, instituted April 6
• Rising freight costs in North America (up 20% YoY).
• Slumping demand for soft drinks. Soda consumption hit a 31-year low in 2016.

REGULATION

The SEC Hits Altaba for Its Silent Treatment After Yahoo Breach

If you don't think the cover-up is worse than the crime, just talk to Altaba (the company formerly known as Yahoo). It agreed to pay the SEC a $35 million fine for failing to inform investors about a data breach that affected hundreds of millions of accounts.

How the events played out:

• In 2014, Russian hackers stole Yahoo's digital "crown jewels": passwords, usernames, email addresses, phone numbers, and more.
• Two years pass. Paul Blart: Mall Cop 2 is released.
• In 2016, as its internet business was getting acquired by Verizon, Yahoo execs decided it was time to disclose the breach.

What do you think, SEC? "The allegations in the complaint illustrate a complete corporate failure to disclose a data breach that was widely known and readily available in the company."

Is this over? Not yet. The SEC could still go after the execs who bungled the clean-up job.

WHAT ELSE IS BREWING

• Sinclair (-0.52%) has agreed to sell 23 of its stations to soothe regulators' concerns over its $3.9 billion deal for Tribune (-0.34%).
• Apple (-1.39%) is moving ahead with its agreement to pay $16 billion in back taxes to Ireland.
• A breakthrough? Shire and Takeda could announce a preliminary merger deal today, per Reuters.
• WeWork is tapping the debt markets, selling $500 million of junk bonds.
• Chinese ride-hailer Didi could IPO as early as this year (WSJ).
• Spotify (-1.88%) revealed what its revamped free service looks like.

WATER COOLER

FROM THE CREW

From our office, to your inbox. We’ll keep you in-the-know about all the latest happenings from our perspective.

Here are some facts: So far, corporations have reported fantastic, even record-breaking earnings. More than 80% of reporting S&P corporations beat profit estimates.

Here are some other facts: Investors don't seem impressed with the results. The Dow has dropped for five straight days, the Nasdaq four.

So what's going on with the market?

Anyone? Okay, if no one else will...we'll take a stab with two hypotheses:

• Back to the future: While corporations had plenty to smile about in Q1 (like the tax cut), the future might not be as cushy. Take Caterpillar (-6.20%). It beat expectations, but warned it has hit a "high watermark for the year."
• Surging bond yields: The yield on a 10-Year Treasury note hit 3% for the first time in four years. That could push investors towards bonds, hanging equities out to dry.

THE BREAKROOM

VENTURE THIS RESPONSES
Yesterday, we asked if you'd invest in The Boring Company—Elon Musk's initiative to reinvent urban transportation with a network of high speed, underground tracks. 62% of readers said "Yes," while 38% of readers said "No."

Our favorite responses:

"Musk's tunneling plans are an engineering nightmare. See Jarrett Walker's articles on Musk and 'Elite Projection' for a more organized response. Seems Musk ignores real urban issues in favor of a pipe dream."

"Basically this seems like a great value investment opportunity. Yes, the risk is very high for regulations to destroy the whole thing. But if they pull it off, they can charge high tolls for years in their ‘Tiny Tesla Tunnels.'"

SIP ON THIS
Former FBI director James Comey sold more than 600,000 copies (in all formats) of his new book, A Higher Loyalty, in its first week. That easily Trumps the other recent book releases from Hillary Clinton (300,000) and Michael Wolff (200,000).

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