11.19.2015
Good to Know: Global investment bank Goldman Sachs is telling people to buy Apple’s stock. Why though? Goldman says Apple is no longer a hardware company but evolving into a services company. This means more growth = more $$$$. Enough said.
THE SKINNY
When You Give a Helping Hand …
Many people around the world are trying to do right by Syrian refugees. Instead of funneling funds through traditional nonprofits like the Red Cross, people are choosing crowdfunding sites like Indiegogo and GoFundMe to make online donations.
WHEN YOU HAVE All The Feels …
Norwegian web developer and activist Gissur Simonarson saw a pic on Twitter of a Syrian refugee dad holding his daughter while trying to sell pens on the streets of Beirut, Lebanon. The image touched Simonarson so much that he wanted to do something help. So this past August, he tracked them down and launched a pretty successful Indiegogo campaign.
When Something’s not what you expected …
The campaign raised about US $190,000, and the family ended up using the money to buy a bakery. But, Simonarson says issues came up that he didn’t anticipate. First, between Indiegogo and the payment service PayPal, the family lost about US $20,000 of their donations to fees charged by these platforms. Sidenote: Indiegogo’s new charity platform eliminates these fees. Second, so you’ve raised the money, now where do you keep it? Yes, a bank account would be logical, but there was no way for Simonarson and the family to set one up. Add security and safety to the list of concerns.
WHEN YOU’RE DOWN FOR THE CAUSE …
People pouring money into online platforms to help others is a good thing, right? Well, yes and no. There’s concern that increased online giving to individuals may create issues of equitable distribution since crowdfunding platforms may reflect biases of societies that use them. Also, opting for online platforms takes money away from nonprofit institutions capable of addressing crises at a macro-level. In other words, crowdfunding platforms may potentially hurt the larger cause. Perhaps, online platforms will put pressure on traditional organizations to reform their practices, some of which have not been great (e.g., mismanaging funds).
WHAT ELSE IS GOING ON?
Playing the Blame Game …
In the wake of the Paris attacks, U.S. lawmakers and law enforcement launched a blame game targeted towards today’s technology. First up? Encrypted devices. CIA director John Brennan said it’s hard to uncover info because of encryption. Then, some lawmakers blamed the Internet. One lawmaker thought it would be a great idea to shut down “ISIS websites and social networks.” Now, U.S. Federal Communications Commission Chairman Tom Wheeler is saying that it’s time for Congress to look into the Communications Assistance for Law Enforcement Act (CALEA). Basically, CALEA would make companies build mandatory pathways or “backdoors” into their technology to decipher encrypted messages. May sound good in theory, but in reality, a backdoor in these technologies would be accessible by anyone and everyone savvy enough. Privacy issues much?
On High Alert …
The European Union (EU) is considering ways to cut off terrorist financing. Virtual currencies like Bitcoin and anonymous forms of payment are on the chopping block so to speak. EU officials met last Friday and concluded that they’ll try to convince the European Commission to tighten up controls of “non-banking payment methods such as electronic/anonymous payments and virtual currencies and transfers of gold, precious metals, by pre-paid cards.”
When people aren’T Feelin’ yOU like they used to …
Match Group, the parent company of dating apps like Tinder, is now officially ‘MTCH’ on NASDAQ. The company’s IPO price came in at US $12/share, the low end of the US $12-$14 expected range. Mobile payments company Square is officially public as of today. Its price came in at an underwhelming US $9/share, way below the expected $11-$13 range we originally thought. Ouch! Attention companies worth at least a billion dollars or more (aka unicorns): These are probably more signs that investors are cooling off on tech IPOs.
It’s All About Mobile These Days …
Google is changing up how mobile search works. The company’s transitioning into the mobile age and will start indexing content from Android apps, even if these apps don’t have a corresponding website. Google is letting mobile users “stream” content from apps (Note:app downloads not necessary). The company’s testing things out with a few partners including horoscope sites and the New York Subway.
THE STREETS ARE TALKIN’
Yesterday, we said that ride-hailing app and Uber rival, Lyft, is looking for $500 million. Now, we know why thanks to some leaked docs. In the first half of the year, Lyft lost a ton of money and didn’t bring in much revenue. To be more specific, we’re talking losing $127 million on $46.7 million in revenue. We’re not financial experts, but …
Dutch file-sharing service WeTransfer is tapping into the online music streaming game alongside Spotify and Apple Music. For the company, it’s not about making money from music (ha!) but simply about getting on the map in the U.S.
Social network Facebook is improving its “Donate” button to help nonprofits raise funds. Organizations like Mercy Corp, National MS Society, and Worldwide Wildlife Fund are the first to get on board. BTW, #IStillUseFacebook was trending on Twitter. #NoHate #NoShade, but we chuckled at some tweets, especially those poking fun at how FB is late to the party when it comes to breaking news.