Facebook tweaks its language — again

January 31, 2019

After Facebook reported record profits yesterday, the stock has been on a tear. When I checked a short time ago, it was up over 12% for the day.

CNBC did a round-up on analyst comments after the earnings were released and it’s hard to describe it as anything other than glowing. Needless to say, almost every one raised their price targets for the stock as it continued to rise.

But in all of that coverage, I’ve yet to see anyone who has noticed a new disclosure in the forward-looking statements at the end of the earnings release. In the 313-word disclosure, there were these 22 new words:

risks associated with government actions that could restrict access to our products or impair our ability to sell advertising in certain countries

This is hardly the first time that Facebook has done this.  Back in April, I also noticed a similar tweak, which I wrote about here. But as I say all the time: there are no accidents in SEC filings. Everything is there for a reason and that reason is usually because some lawyer requested that disclosure.

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Some of you may have noticed that I’m not posting as frequently as I used to. There’s a good reason for that. My mom is dealing with a serious health issue and I’ve decided to focus more of my attention on her. Last summer, I moved back to NY after nearly six years in LA to be closer to her, since the regular cross-country flights were exhausting, not to mention hard on my son. Despite being a native New Yorker, it has not been an easy transition back, and on frigid days like this I definitely miss reading SEC filings under my grapefruit tree! Thanks for your understanding.

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