Per media reports, Facebook Inc FB has furnished “detailed” records on Russian ad spending during U.S. Presidential elections to special counsel, Robert Mueller. This was in response to Mueller obtaining a search warrant against the tech giant.
There has been a widespread speculation that Russia meddled with 2016 U.S. presidential elections that resulted in Donald Trump’s victory. To investigate this, the Department of Justice (DoJ) appointed Mueller, an ex FBI chief.
Per Wall Street Journal, the furnished records include details of the accounts and the copies of ads and the targeted audience. Almost a fortnight back, Facebook revealed to Congress that it identified Russian accounts (about 470) spending nearly $100,000 in ads (over 3K) coinciding with the U.S. election (from June of 2015 to May of 2017), causing a massive uproar.
The report also added that Facebook might not have disclosed all information to Congress for fear of Privacy Law violation or disturbing the probe by DoJ. Also, Facebook feared that revealing everything to Congress escalated chances of a leak compared to furnishing details to DoJ.
Business Insider quoted ex federal prosecutor Renato Mariotti who said that the warrant implies that “Mueller has concluded that specific foreign individuals committed a crime by making a 'contribution' in connection with an election."
Mariotti further added, "That has implications for Trump and his associates, too. It is a crime to know that a crime is taking place and to help it succeed. That's aiding and abetting. If any Trump associate knew about the foreign contributions that Mueller's search warrant focused on and helped that effort in a tangible way, they could be charged."
However, there has been no word from Mueller’s office while Facebook has maintained that it will cooperate with the concerned authorities.
Zacks Rank and Share Price Movement
Facebook carries a Zacks Rank #3 (Hold).
Notably, the company has outperformed the industry in the past year. Shares of Facebook have surged 33.4% compared with the industry’s 14.6% increase.
Stocks to Consider
Better-ranked stocks in the broader technology sector include Applied Materials AMAT, Activision Blizzard ATVI and FormFactor Inc FORM, all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Applied Materials, Activision and FormFactor is currently projected to be 17.1%, 13.6% and 16%, respectively.
New Report: An Investor’s Guide to Cybersecurity
Cyberattacks have become more frequent and destructive than ever. In fact, they’re expected to cause $6 trillion per year in damage by 2020.
The cybersecurity industry is expanding quickly in response to these threats. In fact, a projected $170 billion per year will be spent to protect consumer and corporate assets. Zacks has just released Cybersecurity: An Investor’s Guide to Locking Down Profits which reveals 4 promising investment candidates.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment