Business News

CCTV Script 02/05/18


— This is the script of CNBC's news report for China's CCTV on May 2, Wednesday.

There are 2 highlights on the annual developer conference. First, Facebook introduced a new "Dating" feature that helps to connect people who are not Facebook friends with each other, builds a real, sincere and long-term exclusive relationship. But users whose status is on stable love relationship can't use this feature.

Zuckerberg said "there are around 0.2 billion Facebook users whose emotional status is Single, so it's obvious that Facebook can do something for them" The market holds an positive view to this new feature, cause the Dating feature gives the advertisers a new chance. This service, however, also challenge the predominant existing dating apps, Dating service not only affect the latter's profitability but also influences the latter's potential for acquiring new users.

This service is free and can compensate the increasing cost with potential ads' income. For example, Match Group that owns Tinder and OkCupid is the major dating apps in the US, making profits by user subscription.

The stock price of Facebook climbed 1.08% in the overnight trading and a 0.24 increase was seen in the after-hours session after Facebook announced this new feature.

The stock price of Match Group took a tumble after Facebook's announcement, slumping 22.09%, which is the largest one-day drop for 2 years.

IAC, the parents of Match Group also closed down 17.77%. So Facebook enters the dating market will led to a new round industry shuffle.

Meanwhile, another highlight on the developer's conference is that Facebook launched more transparent and stricter data protection test tied to the data leakage scandal. In a related move, Facebook announced an upcoming feature called "Clear History"

That means users can see information about websites or the third-party apps that update ads and use analyze tools on Facebook, delete personal related information from your account, and turn off storing information from the third party. Zuckerberg hopes this kind of responsibility can help to rebuild the public's confidence to Facebook.

[Zuckerberg] "We are all here because we are optimistic about the future. we have real challenges to address, but we have to keep that sense of optimism too. What I leant this year is that we need to take a broader view of responsibility. It's not enough to just build powerful tools, but we also need to make sure they are used for good. and we will."

New feature and new regulation are 2 major developing trends for Facebook, but will they bring more profit to Facebook and prevent Facebook from data leakage scandal? We will keep an eye on this issue.