I am convinced that Facebook (FB) and Twitter and other social media platforms will suffer minimal damage as a result of the administration cracking down on social media platforms.
The executive order could make it possible for social media companies to become liable for content posted on their platform.
The issue came about after Twitter decided to fact check two of Trump’s tweets.
To read more about Twitter’s decision, click here.
Trump views the fact checks as a personal attack against him and a threat to his ambitions in the political arena.
Section 230 refers to Section 230 of Title 47 of the United States Code (47 USC § 230). It was passed as part of the controversial Communication Decency Act of 1996.
Section 230 says that “No provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider.”
To read more about the law from Harvard Law Review, click here.
Facebook’s CEO Mark Zuckerberg condemned Twitter’s action saying that social media companies shouldn’t be the “arbiter of truth.”
What I see is President Donald J. Trump putting a massive premium on his Twitter account as the focal point to disperse his opinions and thoughts in the run-up to the U.S. presidential election.
This could be the difference between winning or losing!
This election will be fought tooth and nail on digital platforms and in the realm of global social media, Twitter is one of the most important platforms which is why I am incredibly bullish on the stock.
U.S. Democratic nominee Joe Biden understands the role of digital media in the upcoming election the hard way by being forced to be rooted in front of a webcam instead of rallying the masses at in-person live events.
Unable to round the circuit is an outsized blow for Biden and his digital response to it will be measured up to the Republican’s controversial response to the health crisis.
Trump has Twitter at his disposal and is much more adept at wielding it for his personal and career interests than Biden.
This U.S. election could become a Twitter contest to an extreme degree.
Twitter intruding into Trump’s daily flow of tweets and the backlash resulting from it is a clear signal that Trump is adamant that he can say whatever he wants through his Twitter account and in his mind, that will springboard him to re-election.
Facebook has benefited the most from Section 230 by Zuckerberg building his tech firm into a $650 billion company. Google’s YouTube platform is another outsized winner too.
This is the very law that undergirds Facebook’s entire competitive advantage since the company doesn’t actually produce anything, not even its own content.
Remember that Facebook effectively profits off of other’s personal data by giving digital ad companies the ability to post ads to a specific audience of Facebook subscribers.
I understand that Zuckerberg doesn’t consider this selling personal data and the difference at most comes down to technical verbiage.
I believe it will not devolve to a litigious stage.
This is merely a hands-off warning by Trump who wants control over his Twitter account and destiny up until the November election without any distractions or tech firms playing boss.
Zuckerberg wants Twitter CEO Jack Dorsey to shut his mouth and continue with the status quo which would mean higher stock prices and extreme wealth generation for everyone involved.
The exorbitant costs associated with auditing content of over 2 billion people keep Zuckerberg up at night.
Artificial Intelligence cannot identify the next threat and its backdated database can only identify what was assumed malicious in the past.
There is simply no way to ensure that 100% of content flowing through these digital arteries is mainstream enough to be deemed acceptable and social media platforms would open themselves up to lawsuits.
The lead up to the 2020 U.S. presidential election will most likely experience record social media engagement and these powerful platforms like Facebook and Twitter are the last tech stocks investors should go bearish on in the short-term.
Trump’s panic at the Twitter fact check is a stamp of approval for Twitter and Facebook.
Buy them on the dip.
