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Trump-Biden fracas shows how social media gets mired in fact-check battles – POLITICO

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5 years ago

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The Twitter office building in San Francisco. | Jeff Chiu, File/AP Photo

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Republicans and Democrats’ accusations of online deception are posing an increasingly no-win dilemma for the Silicon Valley companies caught in the middle.

The latest example is Twitter, which found itself stuck between the campaigns of President Donald Trump and former Vice President Joe Biden this week as it tried to enforce a new policy of designating certain misleading content as “manipulated media.” But it’s unlikely to be the last, as Democrats escalate their demands for social media platforms to take action against online deception — while Republicans denounce any hint that the tech companies are censoring conservative speech.

Even the companies’ attempts to stay out of the political fray have drawn attacks from both ends of the political spectrum — as seen in Twitter’s much-criticized ban on campaign ads and Facebook’s policy of refusing to fact-check politicians’ statements.

“As companies increasingly insert themselves into making inherently subjective judgment calls, politicians are going to work the refs, and they’re also going to use those fights to draw attention,” said Jesse Blumenthal, who heads tech and innovation policy for the Koch-funded group Stand Together.

The latest kerfuffle took place Sunday, when Twitter slapped the “manipulated” tag on a video shared by Trump’s White House social media director, Dan Scavino. The video contained an incomplete quote from a campaign stop in which Biden appears to say that “we can only re-elect Donald Trump” — omitting his subsequent remark that a Trump victory is likely if Democrats attack each other during the primary.

The president retweeted the video to his 73.5 million followers Sunday amid a push by his campaign and advisers to portray Biden as senile. Branding it as manipulated media was Twitter’s first action to enforce a new policy of flagging — but not necessarily removing — content it deems deceptive.

Scavino’s tweet remained online as of Tuesday evening, but conservatives counterattacked, accusing Twitter of “manipulating the election” by striking down “political speech they don’t like.” So did Trump’s reelection campaign, which complained in a letter Monday from Chief Operating Officer Michael Glassner that Twitter was showing political favoritism by flagging a video that is “100% real, 100% authentic, 100% unedited.”

“It appears that many people employed by Big Tech corporations in Silicon Valley are assisting the Biden campaign by instituting a special ‘Biden protection rule’ that effectively censors and silences legitimate political speech Biden’s campaign and its supporters do not like,” Glassner wrote.

He then called on Twitter to prove its fairness by applying the same label to specific videos the Trump campaign contends unfairly criticize the president.

Twitter said its policy of denoting manipulated media does not apply to those videos or any other content posted before it went into force Thursday. The company acknowledged late Monday it had received the Trump campaign’s complaint and intends to respond.

Twitter declined to comment for this story. In a blog post last month, the company outlined its criteria for applying the manipulated media label and noted it would continue to reevaluate its approach based on feedback.

The episode showed how social media companies, which have faced criticism for refusing to referee deceptive claims, can also face criticism for making tough calls.

“When a platform decides to label certain content as deceptive, they’re signing up for some very difficult judgment calls about the substance of messages and videos, and the meaning of ‘deceptive,’ said Katy Bass, research director at Columbia University’s Knight First Amendment Institute.

“They will also have to have the backbone to stand up to powerful politicians when they get mad about the platform’s decisions,” she added. “It’s very hard to tell whether Twitter can do either of these things effectively.”

Companies like Twitter, Facebook and Google have waded hesitantly into moderating political speech on their platforms — at times settling on policies that anger both ends of the political spectrum.

Twitter banned political ads last year in a move that CEO Jack Dorsey justified by saying politicians should earn, not buy, influence on its platform. But the policy was less clear-cut on handling cause-based ads, raising questions about how to determine when an issue becomes political.

Google and Facebook, meanwhile, took less restrictive approaches to political ads. Google limited how narrowly political campaigns could target their ads, a decision that angered Democrats and Republicans alike. Facebook opted to leave the most controversial aspects of its own ads policies largely intact.

And Facebook separately came under fire from Democrats, including House Speaker Nancy Pelosi, just last week for permitting the Trump campaign to post an ad that invoked the U.S. census to direct users to the campaign’s website. The social network ultimately removed the ad, saying it violated the company’s policies against census-related misinformation.

Political speech often exists in the gray space between fact and fiction, and that remains true in the digital realm. Campaigns have long sought to spin the facts to favor their candidate. But social media allows that reality to happen on a broader scale and often with less accountability. The 2016 election brought that into sharp focus after it was revealed that Russian trolls had exploited social media to spread disinformation, as part of a Kremlin-directed effort that U.S. intelligence agencies have said was intended to help Trump win.

That experience has prompted some critics to assert that social media companies do not go far enough to combat political misinformation and should be subject to greater oversight.

“The platforms are largely lawless and will do anything that boosts their bottom line — democracy is a second concern at best,” said Jeff Chester, executive director of the Center for Digital Democracy. Chester argues the Federal Election Commission should impose rules requiring “fairness and honesty” online.

“If we continue to allow Facebook, Google and Twitter to permit political groups to falsely scream there’s a ‘fire’ online, we will set the stage for a dystopian democracy where nothing can ever be trusted,” he said.

Let’s block ads! (Why?)



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Trump could cash out his DJT stock within weeks. Here’s what happens if he sells

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3 weeks ago

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August 23, 2024

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Former President Donald Trump is on the brink of a significant financial decision that could have far-reaching implications for both his personal wealth and the future of his fledgling social media company, Trump Media & Technology Group (TMTG). As the lockup period on his shares in TMTG, which owns Truth Social, nears its end, Trump could soon be free to sell his substantial stake in the company. However, the potential payday, which makes up a large portion of his net worth, comes with considerable risks for Trump and his supporters.

Trump’s stake in TMTG comprises nearly 59% of the company, amounting to 114,750,000 shares. As of now, this holding is valued at approximately $2.6 billion. These shares are currently under a lockup agreement, a common feature of initial public offerings (IPOs), designed to prevent company insiders from immediately selling their shares and potentially destabilizing the stock. The lockup, which began after TMTG’s merger with a special purpose acquisition company (SPAC), is set to expire on September 25, though it could end earlier if certain conditions are met.

Should Trump decide to sell his shares after the lockup expires, the market could respond in unpredictable ways. The sale of a substantial number of shares by a major stakeholder like Trump could flood the market, potentially driving down the stock price. Daniel Bradley, a finance professor at the University of South Florida, suggests that the market might react negatively to such a large sale, particularly if there aren’t enough buyers to absorb the supply. This could lead to a sharp decline in the stock’s value, impacting both Trump’s personal wealth and the company’s market standing.

Moreover, Trump’s involvement in Truth Social has been a key driver of investor interest. The platform, marketed as a free speech alternative to mainstream social media, has attracted a loyal user base largely due to Trump’s presence. If Trump were to sell his stake, it might signal a lack of confidence in the company, potentially shaking investor confidence and further depressing the stock price.

Trump’s decision is also influenced by his ongoing legal battles, which have already cost him over $100 million in legal fees. Selling his shares could provide a significant financial boost, helping him cover these mounting expenses. However, this move could also have political ramifications, especially as he continues his bid for the Republican nomination in the 2024 presidential race.

Trump Media’s success is closely tied to Trump’s political fortunes. The company’s stock has shown volatility in response to developments in the presidential race, with Trump’s chances of winning having a direct impact on the stock’s value. If Trump sells his stake, it could be interpreted as a lack of confidence in his own political future, potentially undermining both his campaign and the company’s prospects.

Truth Social, the flagship product of TMTG, has faced challenges in generating traffic and advertising revenue, especially compared to established social media giants like X (formerly Twitter) and Facebook. Despite this, the company’s valuation has remained high, fueled by investor speculation on Trump’s political future. If Trump remains in the race and manages to secure the presidency, the value of his shares could increase. Conversely, any missteps on the campaign trail could have the opposite effect, further destabilizing the stock.

As the lockup period comes to an end, Trump faces a critical decision that could shape the future of both his personal finances and Truth Social. Whether he chooses to hold onto his shares or cash out, the outcome will likely have significant consequences for the company, its investors, and Trump’s political aspirations.

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Arizona man accused of social media threats to Trump is arrested

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3 weeks ago

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August 23, 2024

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Cochise County, AZ — Law enforcement officials in Arizona have apprehended Ronald Lee Syvrud, a 66-year-old resident of Cochise County, after a manhunt was launched following alleged death threats he made against former President Donald Trump. The threats reportedly surfaced in social media posts over the past two weeks, as Trump visited the US-Mexico border in Cochise County on Thursday.

Syvrud, who hails from Benson, Arizona, located about 50 miles southeast of Tucson, was captured by the Cochise County Sheriff’s Office on Thursday afternoon. The Sheriff’s Office confirmed his arrest, stating, “This subject has been taken into custody without incident.”

In addition to the alleged threats against Trump, Syvrud is wanted for multiple offences, including failure to register as a sex offender. He also faces several warrants in both Wisconsin and Arizona, including charges for driving under the influence and a felony hit-and-run.

The timing of the arrest coincided with Trump’s visit to Cochise County, where he toured the US-Mexico border. During his visit, Trump addressed the ongoing border issues and criticized his political rival, Democratic presidential nominee Kamala Harris, for what he described as lax immigration policies. When asked by reporters about the ongoing manhunt for Syvrud, Trump responded, “No, I have not heard that, but I am not that surprised and the reason is because I want to do things that are very bad for the bad guys.”

This incident marks the latest in a series of threats against political figures during the current election cycle. Just earlier this month, a 66-year-old Virginia man was arrested on suspicion of making death threats against Vice President Kamala Harris and other public officials.

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Trump Media & Technology Group Faces Declining Stock Amid Financial Struggles and Increased Competition

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3 weeks ago

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August 20, 2024

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Trump Media & Technology Group’s stock has taken a significant hit, dropping more than 11% this week following a disappointing earnings report and the return of former U.S. President Donald Trump to the rival social media platform X, formerly known as Twitter. This decline is part of a broader downward trend for the parent company of Truth Social, with the stock plummeting nearly 43% since mid-July. Despite the sharp decline, some investors remain unfazed, expressing continued optimism for the company’s financial future or standing by their investment as a show of political support for Trump.

One such investor, Todd Schlanger, an interior designer from West Palm Beach, explained his commitment to the stock, stating, “I’m a Republican, so I supported him. When I found out about the stock, I got involved because I support the company and believe in free speech.” Schlanger, who owns around 1,000 shares, is a regular user of Truth Social and is excited about the company’s future, particularly its plans to expand its streaming services. He believes Truth Social has the potential to be as strong as Facebook or X, despite the stock’s recent struggles.

However, Truth Social’s stock performance is deeply tied to Trump’s political influence and the company’s ability to generate sustainable revenue, which has proven challenging. An earnings report released last Friday showed the company lost over $16 million in the three-month period ending in June. Revenue dropped by 30%, down to approximately $836,000 compared to $1.2 million during the same period last year.

In response to the earnings report, Truth Social CEO Devin Nunes emphasized the company’s strong cash position, highlighting $344 million in cash reserves and no debt. He also reiterated the company’s commitment to free speech, stating, “From the beginning, it was our intention to make Truth Social an impenetrable beachhead of free speech, and by taking extraordinary steps to minimize our reliance on Big Tech, that is exactly what we are doing.”

Despite these assurances, investors reacted negatively to the quarterly report, leading to a steep drop in stock price. The situation was further complicated by Trump’s return to X, where he posted for the first time in a year. Trump’s exclusivity agreement with Trump Media & Technology Group mandates that he posts personal content first on Truth Social. However, he is allowed to make politically related posts on other social media platforms, which he did earlier this week, potentially drawing users away from Truth Social.

For investors like Teri Lynn Roberson, who purchased shares near the company’s peak after it went public in March, the decline in stock value has been disheartening. However, Roberson remains unbothered by the poor performance, saying her investment was more about supporting Trump than making money. “I’m way at a loss, but I am OK with that. I am just watching it for fun,” Roberson said, adding that she sees Trump’s return to X as a positive move that could expand his reach beyond Truth Social’s “echo chamber.”

The stock’s performance holds significant financial implications for Trump himself, as he owns a 65% stake in Trump Media & Technology Group. According to Fortune, this stake represents a substantial portion of his net worth, which could be vulnerable if the company continues to struggle financially.

Analysts have described Truth Social as a “meme stock,” similar to companies like GameStop and AMC that saw their stock prices driven by ideological investments rather than business fundamentals. Tyler Richey, an analyst at Sevens Report Research, noted that the stock has ebbed and flowed based on sentiment toward Trump. He pointed out that the recent decline coincided with the rise of U.S. Vice President Kamala Harris as the Democratic presidential nominee, which may have dampened perceptions of Trump’s 2024 election prospects.

Jay Ritter, a finance professor at the University of Florida, offered a grim long-term outlook for Truth Social, suggesting that the stock would likely remain volatile, but with an overall downward trend. “What’s lacking for the true believer in the company story is, ‘OK, where is the business strategy that will be generating revenue?'” Ritter said, highlighting the company’s struggle to produce a sustainable business model.

Still, for some investors, like Michael Rogers, a masonry company owner in North Carolina, their support for Trump Media & Technology Group is unwavering. Rogers, who owns over 10,000 shares, said he invested in the company both as a show of support for Trump and because of his belief in the company’s financial future. Despite concerns about the company’s revenue challenges, Rogers expressed confidence in the business, stating, “I’m in it for the long haul.”

Not all investors are as confident. Mitchell Standley, who made a significant return on his investment earlier this year by capitalizing on the hype surrounding Trump Media’s planned merger with Digital World Acquisition Corporation, has since moved on. “It was basically just a pump and dump,” Standley told ABC News. “I knew that once they merged, all of his supporters were going to dump a bunch of money into it and buy it up.” Now, Standley is staying away from the company, citing the lack of business fundamentals as the reason for his exit.

Truth Social’s future remains uncertain as it continues to struggle with financial losses and faces stiff competition from established social media platforms. While its user base and investor sentiment are bolstered by Trump’s political following, the company’s long-term viability will depend on its ability to create a sustainable revenue stream and maintain relevance in a crowded digital landscape.

As the company seeks to stabilize, the question remains whether its appeal to Trump’s supporters can translate into financial success or whether it will remain a volatile stock driven more by ideology than business fundamentals.

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