Fix Facebook

MARKETS

• U.S. markets: Facebook and its data privacy struggles led tech stocks over a cliff. Investors were already jittery after President Trump attacked Bob Mueller this weekend.
• International markets: The UK's FTSE 100 index dropped 1.7% as the investing community awaits the Fed's Wednesday decision on interest rates.

TECH

Three Hard Questions for Facebook

Facebook has been in hot water for a while now...but it's finally getting burned. The stock plummeted 7% (its worst day in four years) in the aftermath of a data privacy scandal.

Refresh: Cambridge Analytica, a data analysis firm that consulted for the Trump campaign, skirted Facebook guidelines to gain access to 50 million profiles, (mis)using this data for targeted political ads.

And since the report surfaced over the weekend, lawmakers on both sides of the Atlantic have been asking telling Mark Zuckerberg to explain himself.

If Zuckerberg does talk to lawmakers, here are a few questions he should prep for:

1) How did Cambridge Analytica gain access to users' private info?

Context: Cambridge Analytica worked with an academic researcher to set up a personality quiz app. And 270,000 people gave permission to access their friends' profiles.

But instead of using that data for research, their info was used to build political ad campaigns. Facebook will have to explain how it allowed this information to fall into Cambridge Analytica's lap.

2) Why wasn't Facebook more aggressive in making sure this data was deleted?

Context: In 2015, Facebook learned that Cambridge Analytica gathered this data. And when Facebook found out, it sent a letter to the firm demanding the info be deleted (...it was never deleted). Facebook only followed up last week when journalists showed the data still existed.

3) What is Facebook doing to protect users' data?

Context: If you're on Facebook, there's a chance your private info could be used for all kinds of purposes you don't endorse—in this case, to sway elections. Lawmakers will want to know if Zuckerberg is committed to his New Year's resolution to "fix Facebook"...or if this platform needs a shot of regulation.

TRANSPORTATION

Uber's Self-Driving Car Hit and Killed Pedestrian

That's what Uber CEO Dara Khosrowshahi tweeted after one of the company's self-driving cars hit and killed a woman in Tempe, AZ (the first time it's ever happened). Dara then temporarily shut down all of Uber's self-driving tests in Tempe, San Francisco, Pittsburgh, and Toronto.

What's at stake: Self-driving has long been praised as a safer alternative to the less-capable, easily distracted human driver. As legislation pushes forward to pave the way for a self-driving future, this will create some speed bumps.

Especially since this isn't the first autonomous vehicle incident. A self-driving vehicle flipped over in Tempe last year (no one was seriously injured), and a Tesla on autopilot crashed into a tractor-trailer in 2016 (the passenger inside the Tesla died).

The Crew's take: This is a setback, but don't expect self-driving to hit the brakes. It's flush with cash and the tech is Uber's (and Lyft's) quickest path to profitability.

TECH

Apple Is Developing Screens to Cut Suppliers Out of the Equation

Deep in the heart of California, 300 Apple (-1.53%) engineers are chipping away at a secret project: end-to-end MicroLED screen design.

And if successful, Apple would be one step closer to severing ties with some major screen suppliers (Samsung, Japan Display, etc.), while leaping ahead in one of the industry's most compelling new technologies.

And what is this technology?

Right now, every iPhone (except for the iPhone X, which has an OLED screen) has an LCD screen. What you see on your screen is generated by a backlight illuminating pixels to create distinct colors. It uses A LOT of battery power.

Similar to OLED, with MicroLED, each pixel emits its own light, creating color without the need for a backlight. The result? More sustainable battery life and next-level color contrast so you can see what Steve from Tinder actually looks like before that Thursday night bowling date.

Bottom line: Apple has teased MicroLED since it acquired a producer of the tech, LuxVue, in 2014. But it still hasn't reached commercialization. Costs are steep, the tech is hard to implement, and competitors like Samsung have pulled ahead.

RETAIL

Google Is Helping Retailers Fight Back Against Amazon

Need a hand competing with Amazon? Google is here to help out. Through its new program, Shopping Actions, it's now allowing retailers to list products on Google Search, Google Express (Google's fast-delivery online shopping experience) and the Google Assistant app for a slice of the profits.

It'll also offer a universal shopping cart so you can simultaneously check out with that dog food from Walmart and a plunger from Home Depot. No one will ask any questions.

And there's proof it works. Ulta and Target (among others) guinea-pigged the test run:

* Ulta's orders increased by 35%
* Target's Google Express orders increased by 20%

So what's Google's angle? Over the last two years, mobile searches like "Where can I buy this?" "How can I buy it?" and "How do I transact?" jumped 85%.

The majority of those queriers inevitably found their way to Amazon. But if Google leverages its platform with popular products from brands people trust, retailers might just give Amazon a run for its money.

But who are we kidding...

WHAT ELSE IS BREWING

• Twitter (-1.66%) is banning most crypto ads.
• Facebook's Chief Security Officer is reportedly stepping down over disagreements on how the company handled Russian meddling.
• U.S. regulators are investigating Hyundai and Kia after several undeployed airbags led to four deaths and six injuries (paywall).
• The AT&T-Time Warner vs. DOJ trial kicked off.
• Saudi Aramco is holding off on a big international IPO.
• Reporting earnings today: FedEx

WATER COOLER

VENTURE THIS

Each week, we’ll let you know about a startup making waves. We’ll tell you about the company, pitching you the good and the bad. Then we want to hear from you. Would you invest?

Would you pay $7.95 a month to watch any movie in theaters whenever you felt like it? That's the pitch from MoviePass, a subscription service that could fundamentally change the way we go to the movies.

What we like
A large and growing subscriber base of over two million. Not to mention, a MoviePass subscription covers 91% of U.S. theaters.

And with a new initiative called MoviePass Ventures, the company is now acquiring the distribution rights to films. The ability to own and market these movies in-app or on social media could be a killer combo.

But it's super risky
Every company has to make money at some point, and for MoviePass...that point seems far away. Why? The company pays the theater the full price of the ticket so that you can go for cheap.

The simple math: If you go to more than one movie per month (or even just one), then MoviePass loses money. The more subscribers, the more money it loses. One analyst estimates MoviePass has seven months worth of cash left to subsdize its customers.

But this isn't about him, this is about you. Are you IN or OUT on MoviePass? (Vote here.)

THE BREAKROOM

GUESS THE LOGO

(Answer located at bottom of newsletter)

BRAIN TEASER

How many perfect squares (numbers that are results of squaring an integer) are there from 1 to 1,000,000?

(Answer located at bottom of newsletter)

Breakroom Answers

Guess The Logo
BuzzFeed

Brain Teaser
1,000 (1^2=1,2^2=4...999^2=998,001, 1000^2=1,000,000)