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What is Mastodon, and why is it surging amid all the chaos at Twitter?

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With Twitter in disarray since the world’s richest person took control of it last week, Mastodon, a decentralized, open alternative from privacy-obsessed Germany, has seen a flood of new users.

“The bird is free,” tweeted Tesla mogul Elon Musk when he completed his $44-billion acquisition of Twitter. But many free-speech advocates reacted with dismay to the prospect of the world’s “town square” being controlled by one person and started looking for other options.

For the most part, Mastodon looks like Twitter, with hashtags, political back-and-forth and tech banter jostling for space with cat pictures.

But while Twitter and Facebook are controlled by one authority — a company — Mastodon is installed on thousands of computer servers, largely run by volunteer administrators who join their systems together in a federation.

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People swap posts and links with others on their own server — or Mastodon “instance” — and also, almost as easily, with users on other servers across the growing network.

The fruit of six years’ work by Eugen Rochko, a young German programmer, Mastodon was born of his desire to create a public sphere that was beyond the control of a single entity. That work is starting to pay off.

“We’ve hit 1,028,362 monthly active users across the network today,” Rochko tooted — Mastodon’s version of tweeting — on Monday. “That’s pretty cool.”

That is still tiny compared with his established rivals. Twitter reported 238 million daily active users who had seen an advertisement as of the second quarter of 2022. Facebook said it had 1.98 billion daily active users as of the third quarter.

Growing fast

But the jump in Mastodon users in a matter of days has still been startling.

“I’ve gotten more new followers on Mastodon in the last week than I have in the previous five years,” Ethan Zuckerman, a social media expert at the University of Massachusetts at Amherst, wrote last week.

Before Musk completed the Twitter acquisition on Oct. 27, Mastodon’s growth averaged 60-80 new users an hour, according to the widely cited Mastodon Users account. It showed 3,568 new registrations in one hour on Monday morning.

 

Elon Musk begins plan to cut half Twitter’s global workforce

 

Newly minted Twitter CEO Elon Musk has begun pushing forward with his plan to cut as much as half of the company’s global workforce, beginning with widespread layoffs at the social media company on Friday.

Rochko started Mastodon in 2017, when rumours were spreading that PayPal founder and Musk ally Peter Thiel wanted to buy Twitter.

“A right-wing billionaire was going to buy a de facto public utility that isn’t public,” Rochko told Reuters earlier this year. “It’s really important to have this global communications platform where you can learn what’s happening in the world and chat to your friends. Why is that controlled by one company?”

There is no shortage of other social networks ready to welcome any Twitter exodus, from Bytedance’s Tiktok to Discord, a chat app now popular far beyond its original constituency of gamers.

Mastodon’s advocates say its decentralized approach makes it fundamentally different: rather than go to Twitter’s centrally provided service, every user can choose their own provider, or even run their own Mastodon instance, much as users can email from Gmail or an employer-provided account or run their own email server.

Eugen Rochko founded Mastodon in 2017, and the network has grown steadily over the years before seeing exponential growth in recent weeks. (cbc)

No single company or person, can impose their will on the whole system or shut it all down. If an extremist voice emerged with their own server, the advocates say, it would be easy enough for other servers to cut ties with it, leaving it to talk to its own shrinking band of followers and users.

The federated approach has downsides: it is harder to find people to follow in Mastodon’s anarchic sprawl than on the neatly ordered town square that centrally administered Twitter or Facebook can offer.

But its growing group of supporters say those are outweighed by the advantages of its architecture.

Privacy is valued

Rochko, whose Mastodon foundation runs on a shoestring crowdfunded budget topped up with a modest grant from the European Commission, has found a particularly receptive audience among privacy-conscious European regulators.

Germany’s data protection commissioner is waging a campaign to get government bodies to close their Facebook pages, since, he says, there is no way of hosting a page there that conforms to European privacy laws.

Authorities should move to the federal government’s own Mastodon instance, he says. The European Commission also maintains a server for EU bodies to toot from.

“No exclusive information should be sent over a legally questionable platform,” data commissioner Ulrich Kelber said earlier this year.

While Mastodon is busier than ever before, it still has few of the big names from politics and showbiz that have made Twitter an addictive online home for journalists in particular. Few know comic Jan Boehmermann — Germany’s answer to John Oliver — outside his country, but more names are arriving daily.

For Rochko, the project’s only full-time employee, programming at his home in a small town in eastern Germany for a modest monthly salary of about $2,400 US, the work continues.

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Dow Jones Rises But S&P, Nasdaq Fall; Nvidia, SMCI Flash Sell Signals As Bitcoin's Fourth Halving Arrives – Investor's Business Daily

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[unable to retrieve full-text content]

  1. Dow Jones Rises But S&P, Nasdaq Fall; Nvidia, SMCI Flash Sell Signals As Bitcoin’s Fourth Halving Arrives  Investor’s Business Daily
  2. Iran fires at apparent Israeli attack drones: Mideast tensions  The Associated Press
  3. S&P 500 extends losing streak to sixth day, Dow up 210 points  Yahoo Canada Finance
  4. Stock Market Today: Dow, S&P Live Updates for April 19  Bloomberg
  5. Stock market today: Wall Street limps toward its longest weekly losing streak since September  CityNews Kitchener

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Netflix stock sinks on disappointing revenue forecast, move to scrap membership metrics – Yahoo Canada Finance

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Netflix (NFLX) stock slid as much as 9.6% Friday after the company gave a second quarter revenue forecast that missed estimates and announced it would stop reporting quarterly subscriber metrics closely watched by Wall Street.

On Thursday, Netflix guided to second quarter revenue of $9.49 billion, a miss compared to consensus estimates of $9.51 billion.

The company said it will stop reporting quarterly membership numbers starting next year, along with average revenue per member, or ARM.

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“As we’ve evolved our pricing and plans from a single to multiple tiers with different price points depending on the country, each incremental paid membership has a very different business impact,” the company said.

Netflix reported first quarter earnings that beat across the board on Thursday, with another 9 million-plus subscribers added in the quarter.

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Subscriber additions of 9.3 million beat expectations of 4.8 million and followed the 13 million net additions the streamer added in the fourth quarter. The company added 1.7 million paying users in Q1 2023.

Revenue beat Bloomberg consensus estimates of $9.27 billion to hit $9.37 billion in the quarter, an increase of 14.8% compared to the same period last year as the streamer leaned on revenue initiatives like its crackdown on password-sharing and ad-supported tier, in addition to the recent price hikes on certain subscription plans.

Netflix’s stock has been on a tear in recent months, with shares currently trading near the high end of its 52-week range. Wall Street analysts had warned that high expectations heading into the print could serve as an inherent risk to the stock price.

Earnings per share (EPS) beat estimates in the quarter, with the company reporting EPS of $5.28, well above consensus expectations of $4.52 and nearly double the $2.88 EPS figure it reported in the year-ago period. Netflix guided to second quarter EPS of $4.68, ahead of consensus calls for $4.54.

Profitability metrics also came in strong, with operating margins sitting at 28.1% for the first quarter compared to 21% in the same period last year.

The company previously guided to full-year 2024 operating margins of 24% after the metric grew to 21% from 18% in 2023. Netflix expects margins to tick down slightly in Q2 to 26.6%.

Free cash flow came in at $2.14 billion in the quarter, above consensus calls of $1.9 billion.

Meanwhile, ARM ticked up 1% year over year — matching the fourth quarter results. Wall Street analysts expect ARM to pick up later this year as both the ad-tier impact and price hike effects take hold.

On the ads front, ad-tier memberships increased 65% quarter over quarter after rising nearly 70% sequentially in Q3 2023 and Q4 2023. The ads plan now accounts for over 40% of all Netflix sign-ups in the markets it’s offered in.

FILE PHOTO: Netflix reported first quarter earnings after the bell on Thursday. REUTERS/Dado Ruvic/File PhotoFILE PHOTO: Netflix reported first quarter earnings after the bell on Thursday. REUTERS/Dado Ruvic/File Photo

Netflix reported first quarter earnings after the bell on Thursday. REUTERS/Dado Ruvic/File Photo (REUTERS / Reuters)

Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.

For the latest earnings reports and analysis, earnings whispers and expectations, and company earnings news, click here

Read the latest financial and business news from Yahoo Finance

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Oil Prices Erase Gains as Iran Downplays Reports of Israeli Missile Attack – OilPrice.com

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Oil Prices Erase Gains as Iran Downplays Reports of Israeli Missile Attack | OilPrice.com



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Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

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  • Oil prices initially spiked on Friday due to unconfirmed reports of an Israeli missile strike on Iran.
  • Prices briefly reached above $90 per barrel before falling back as Iran denied the attack.
  • Iranian media reported activating their air defense systems, not an Israeli strike.

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Oil prices gave up nearly all of early Friday’s gains after an Iranian official told Reuters that there hadn’t been a missile attack against Iran.

Oil surged by as much as $3 per barrel in Asian trade early on Friday after a U.S. official told ABC News today that Israel launched missile strikes against Iran in the early morning hours today. After briefly spiking to above $90 per barrel early on Friday in Asian trade, Brent fell back to $87.10 per barrel in the morning in Europe.

The news was later confirmed by Iranian media, which said the country’s air defense system took down three drones over the city of Isfahan, according to Al Jazeera. Flights to three cities including Tehran and Isfahan were suspended, Iranian media also reported.

Israel’s retaliation for Iran’s missile strikes last week was seen by most as a guarantee of escalation of the Middle East conflict since Iran had warned Tel Aviv that if it retaliates, so will Tehran in its turn and that retaliation would be on a greater scale than the missile strikes from last week. These developments were naturally seen as strongly bullish for oil prices.

However, hours after unconfirmed reports of an Israeli attack first emerged, Reuters quoted an Iranian official as saying that there was no missile strike carried out against Iran. The explosions that were heard in the large Iranian city of Isfahan were the result of the activation of the air defense systems of Iran, the official told Reuters.

Overall, Iran appears to downplay the event, with most official comments and news reports not mentioning Israel, Reuters notes.

The International Atomic Energy Agency (IAEA) said that “there is no damage to Iran’s nuclear sites,” confirming Iranian reports on the matter.

The Isfahan province is home to Iran’s nuclear site for uranium enrichment.

“Brent briefly soared back above $90 before reversing lower after Iranian media downplayed a retaliatory strike by Israel,” Saxo Bank said in a Friday note.

The $5 a barrel trading range in oil prices over the past week has been driven by traders attempting to “quantify the level of risk premium needed to reflect heightened tensions but with no impact on supply,” the bank said, adding “Expect prices to bid ahead of the weekend.”

At the time of writing Brent was trading at $87.34 and WTI at $83.14.

By Tsvetana Paraskova for Oilprice.com

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