Peter Thiel is leaving the board of Meta, more than 16 years after becoming one of Facebook's earliest investors. In a statement, Mark Zuckerberg said that “we've always known that at some point he would devote his time to other interests.” The New York Timesreported that those interests include “influencing” the upcoming November midterm elections and "backing candidates who support the agenda of former president Donald J. Trump."

“Peter has been a valuable member of our board and I'm deeply grateful for everything he has done for our company — from believing in us when few others would, to teaching me so many lessons about business, economics, and the world,” Zuckerberg said in a statement. “Peter is truly an original thinker who you can bring your hardest problems and get unique suggestions.”

Thiel has advised Zuckerberg from the earliest days of Facebook. He joined the board of the social media company in 2005 after investing $500,000 in the fledgling social network. In a statement, he called Zuckerberg "one of the great entrepreneurs of our time." 

The Palantir founder is also one of the more controversial members of Meta’s board. Thiel was an early supporter of Trump, and was at a White House dinner in 2019 when Zuckerberg reportedly “came to an understanding” with the president’s team that Facebook would not fact check the president.

Developing...

Nearly five years after going public, Snap is finally profitable. The company shared the milestone in its fourth-quarter earnings report, where it reported $23 million in positive net income.

That may be a tiny percentage of its $4.1 billion in quarterly revenue, but it’s an important step for the company which has at times struggled with user growth. But those challenges appear to be firmly behind Snapchat, as daily active users climbed to 319 million, an increase of 13 million for the second quarter in a row. DAUs were up 20 percent overall in 2021.

The news for shareholders was particularly welcome as Snap’s results came a day after Meta reported that Facebook’s daily active users had declined for the first time in its history. The resulting stock slide wiped more than $200 billion off the company’s market cap.

Developing..

Mark Zuckerberg’s metaverse pivot is off to slow start. The company now known as Meta lost just over $10 billion on its Reality Labs division in 2021, according to its fourth-quarter earnings report.

“This fully realized vision is still a ways off,” Zuckerberg said of Meta’s metaverse investments. “And although the direction is clear, our path ahead is not yet perfectly defined.” Zuckerberg said the company planned to launch a new "high-end" VR headset as well as a mobile version of its Horizon VR experience.

It’s the first time the company has shared the financial performance of the AR and VR division that’s central to its metaverse ambitions. That the metaverse isn’t yet turning a profit isn’t a surprise. The company said last quarter that its AR and VR investments would result in a $10 billion loss for the company. But combined with flat user growth and continued hits to its advertising business, the company’s fourth-quarter results sent Meta's stock into a nosedive.

Meta

Facebook’s daily active users (DAUs) declined from 1.93 billion last quarter to 1.29 billion, a change that Zuckerberg attributes in part to increased competition from TikTok. “We're in the middle of a transition on our own services towards short form video like Reels,” Zuckerberg said. “Reels is now our fastest growing content format by far.” But he added that Reels doesn’t yet monetize as well as Stories or feeds.

Though Facebook’s ad business is still incredibly profitable — it made $32.6 billion in the last quarter — the company warned that Apple’s iOS 14 privacy changes will have a significant impact in the next quarter. “The accuracy of our ads targeting decreased which increased the cost of driving outcomes,” COO Sheryl Sandberg said on the call. Zuckerberg said improving the company’s ads despite Apple’s changes was one of Facebook’s top priorities, and that it was “rebuilding a lot of our ads infrastructure.”

Developing...

Yelp is sharing new stats on the backlash some businesses have faced due to pandemic safety measures like mask requirements. The company says it took down more than 15,500 reviews for violating the company’s COVID-19 guidelines in 2021. That’s a 161 percent increase compared with the same period (March through December) in 2020, when the company first implemented new policies regarding COVID-19 related content.

The stats, which the company published in its 2021 Trust and Safety report, offer a glimpse into how the pandemic has affected the review site. Since the start of the pandemic, the company has implemented rules to mitigate COVID misinformation and encourage businesses to follow public health requirements. For example, reviewers are prohibited from criticizing businesses for implementing pandemic safety measures, like mask and vaccine requirements. The company also allows businesses to indicate vaccine requirements and other safety precautions.

At the same time, though, Yelp has had to navigate a big spike in “review bombing” due to pandemic-related restrictions. In all, nearly 25 percent of all “unusual activity alerts” — when a business’ page sees a sudden influx of reviews that "appear motivated by a recent news event rather than actual consumer experiences" — in 2021 were related to the pandemic, according to the company.

The pandemic wasn’t the only source of review bombing Yelp dealt with over the last year. The report notes the company placed alerts on more than 80 businesses, and removed more than 2,800 reviews, for “incidents related to the Capitol insurrection,” after reviewers targeted businesses owned by alleged rioters. The company also placed alerts on 90 businesses due to review bombing stemming from TikTok.

Snap may not be particularly keen on the metaverse — at least, not as it’s been articulated by Mark Zuckerberg — but the company’s latest experiment certainly sounds a lot like a version of one. The company is teaming up with Universal to host a virtual concert featuring Jennifer Lopez and Colombian pop singer Maluma, which viewers can watch as their Bitmoji avatars.

The concert itself won’t take place in the Snapchat app, but would-be spectators can access the show by signing into the concert’s dedicated website with their Snapchat login. Users’ Bitmoji avatars will appear as spectators in the crowd. There are also a handful of interactive effects that will be available during the show, including the ability to start “the wave” and trigger a virtual laser effect. Lopez and Maluma will also appear as 3D Bitmoji avatars.

The event, scheduled for February 3rd, is meant to promote the upcoming rom-com Marry Me (also starring Lopez and Maluma), and is expected to last about 10 minutes, according to the company.

Virtual concerts have become one of the earliest examples of a metaverse-like experience. Fortnite’s in-game concerts are often referenced in discussions of what an eventual metaverse will look like. And Epic Games CEO Tim Sweeney has said he wants the Fortnite publisher to be a leader in the space. Meta CEO Mark Zuckerberg has also referenced concerts in the metaverse, writing last year that in the future people may be able to “teleport instantly as a hologram” in order to attend shows.

But Snap executives have talked about the metaverse very differently. Snap AR exec Sophia Dominguez told Engadget in December that the company’s vision for the future is not to “escape into another world” but create experiences that can bridge physical spaces with virtual ones. (Snap CEO Evan Spiegel put it slightly differently, remarking last fall on the dystopic origins of the word metaverse. “I think the basic notion was that you know as the physical world was sort of crumbling in this dystopian future that people would escape into this virtual world — that's not at all a focus for us,” he said referring to Neal Stephenson’s Snow Crash.)

What’s less clear is if Snap intends for Bitmoji-led concerts to be a regular occurrence like Fortnite has (Live streaming platform Oz is powering the tech behind the show). But if the company’s first big foray into metaverse adjacent experiences is a hit, it’s not difficult to imagine Snap could host more Bitmoji-driven live events.

Diem, the ambitious crypto project funded by Facebook has collapsed. The Diem Association confirmed that it’s selling its assets to Silvergate, the bank that had previously partnered with the group, and that it would “begin the process of winding down.” Bloomberg had reported talks of a sale last week. A Diem Association spokesperson alleged at the time that the report had unspecified "factual errors."

Now that the sale is official, it marks the end of a more than two year effort to launch the stablecoin championed by Mark Zuckerberg. Though the Diem Association was a separate organization from Facebook and parent company Meta, much of its funding came from Facebook. “I believe that this is something that needs to get built, but I get that I’m not the ideal messenger for this right now,” Zuckerberg told Congress in a 2019 hearing about his cryptocurrency ambitions.

The group previously known as the Libra Association had reportedly hoped to launch its stablecoin last January. But it ran into repeated roadblocks from lawmakers and regulators around the world, and the project was delayed and scaled back numerous times. Among officials’ top concerns was that Diem could be used for money laundering and other illicit purposes.

In a statement, Diem CEO Stuart Levey blamed US regulators for Diem’s demise, and defended the organization’s work to minimize risk with “industry-leading controls to protect consumers and combat financial crime.”

“Despite giving us positive substantive feedback on the design of the network, it nevertheless became clear from our dialogue with federal regulators that the project could not move ahead,” Levey. “As a result, the best path forward was to sell the Diem Group's assets, as we have done today to Silvergate.”

It’s unclear what this means for Facebook’s cryptocurrency wallet Novi, which launched a “small pilot” last year with the Pax Dollar stablecoin. At the time, Facebook’s former crypto chief David Marcus said the company remained committed to launching Diem. Marcus left the company a month later. Facebook didn’t immediately respond to a request for comment.

Pinterest is expanding its augmented reality “try on” feature to home furniture. With the update, users will be able to preview how furniture and other home decor will look in their space.

The company has teamed up with major retailers, including Wayfair, Crate & Barrel, Macy’s and Target, which have made more than 20,000 products to the service. And, like Pinterest’s earlier AR try-on features for beauty products, the new furniture pins are shoppable, so users can buy the items they are trying out.

Pinterest isn’t the first to use augmented reality for furniture shopping — Ikea introduced an AR-powered app in 2017 — the app is also able to recommend specific items based on your previous searches and pins you’ve saved. “Home decor and redesigning and planning for the future is one of the main things people come to Pinterest for,” says Jeremy King, Pinterest’s head of engineering.

While the new pins have an obvious benefit to retailers, King says the platform’s creators are also interested in the feature. Pinterest has been leaning into creator-centric features over the last year, and while AR shopping isn’t explicitly a creator tool, it gives the app’s lifestyle influencers another avenue to create (potentially monetizable) content.

And while the company has had shoppable AR for beauty products for years, the addition of furniture will vastly expand the number of shoppable pins with “try on” enabled, from 14,000 beauty pins to 80,000 home decor pins.

In addition to boosting Pinterest’s commerce features, having a catalog of shoppable AR objects would seem to make the service well-positioned for an eventual metaverse play, should one ever materialize. “We're definitely watching it,” King says of the metaverse. “The good news is all this technology translates exactly into the metaverse. I think it's on its way, but there's not a lot of people shopping for physical objects yet in the metaverse.”

The last year has been a boon for social media scammers, according to a new report from the FTC. The agency says more than 95,000 people lost $770 million to scammers who found them via social media platforms in 2021. That’s more than double the $258 million they say scammers made off with in 2020.

The report doesn’t speculate on why there was such a big increase in 2021, but it notes that reports of scams have “soared” over the last five years. It also states that there was a “massive surge” in scams related to “bogus cryptocurrency investments” and that investment scams accounted for nearly $285 million — more than third — of the $770 million lost last year.

Romance scams have also “climbed to record highs in recent years,” according to the report. “These scams often start with a seemingly innocent friend request from a stranger, followed by sweet talk, and then, inevitably, a request for money,” the FTC says. Also prevalent are scams related to online shopping, most of which involve “undelivered goods” that were purchased as the result of an ad on social media.

Of note, Facebook and Instagram are the only two platforms named in the report. “More than a third of people who said they lost money to an online romance scam in 2021 said it began on Facebook or Instagram,” the report states. Likewise, the FTC says that Facebook and Instagram were the most commonly cited platform for reports of undelivered good, with the two apps cited in 9 out of 10 reports where a service was identified.

“We put significant resources towards tackling this kind of fraud and abuse,” a spokesperson for Meta said in a statement. “We also go beyond suspending and deleting accounts, Pages, and ads. We take legal action against those responsible when we can and always encourage people to report this behavior when they see it.”

Interestingly one of the FTC’s recommendations is that users try to opt out of targeted advertising when possible as scammers can “easily use the tools available to advertisers on social media platforms to systematically target people with bogus ads based on personal details such as their age, interests, or past purchases.” The agency also recommends users lock down their privacy settings and to be wary of any messages asking for money, especially in the form of cryptocurrency or gift cards.

TikTok is adding PSAs and informational resources about the Holocaust in an effort to combat antisemitism in its app. With the changes, TikTok will link to aboutholocaust.org when users search for Holocaust-related content. Holocaust-related hashtags will also link to the website, along with a brief PSA.

“While browsing this topic, we recommend you verify facts using trusted sources, such as the multilingual website (aboutholocaust.org) for essential information about the history of the Holocaust and tis legacy,” the message says. The app will also add a permanent banner at the bottom of Holocaust-related videos that urges users to “get the facts about the Holocaust.” That change will be rolling out “in the coming months.”

Though TikTok’s rules prohibit hate speech, Holocaust denialism and other forms of antisemitism, the app has faced criticism in the past for allowing antisemitic content to spread on its platform. Last year, the Anti-Defamation League published a blog post with a number of examples of “posts perpetuating age-old antisemitic tropes and conspiracy theories.” The organization urged TikTok “to address this systematically.”

TikTok

In its latest statement, TikTok notes that it blocks search results about the Holocaust that may break its rules, and that it uses “a combination of technologies and moderation teams to remove antisemitic content and accounts from our platform, including Holocaust denial or any other form of hate speech directed at the Jewish community.”

It’s looking more and more likely that Diem, Meta’s ill-fated cryptocurrency previously known as Libra, will never actually materialize. The Diem Association is reportedly “weighing a sale of its assets as a way to return capital to its investor members,” Bloombergreports.

It’s unclear what assets the Diem Association owns, but the report notes the group is talking to bankers about selling its intellectual property and finding "a new home for the engineers that developed the technology.”

If a sale were to happen, it would seem to be the final nail in the coffin for Diem, the cryptocurrency project that Mark Zuckerberg has championed. Plans to get the stablecoin off the ground have stalled for years amid regulatory pushback and lawmaker concerns. After first launching as Libra, several high-profile partners pulled out in 2019.

Last fall, Facebook started a small pilot of Novi, the cryptocurrency wallet formerly known as Calibra. But the fact that Novi was forced to launch without support for Diem — it used a different stablecoin called the Pax Dollar — was a sign that Diem's future remained uncertain. Longtime Facebook exec David Marcus, who oversaw the social network’s crypto plans, said at the time that Facebook remained committed to Diem. “I do want to be clear that our support for Diem hasn’t changed and we intend to launch Novi with Diem once it receives regulatory approval and goes live,” he wrote. Marcus announced a month later that he was leaving Facebook. 

A representative for the Diem Association said that Bloomberg's reporting contained unspecified "factual errors," but declined to elaborate or comment further.