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Is Facebook Dying?

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Facebook revenueFacebook has not seen a worthwhile income for some time, and now their stock is down more than 8% according to Business Insider. The company has already told investors that they must brace for a revenue growth rate slowdown, but that investors could expect aggressive opportunities next year.

While the earnings report for Facebook blew away the numbers, investors were not excited. Shares are down and continue to go down. Despite the fact that Facebook has seen a revenue growth of 56% over the past year, their operating margins were reported at 45%.

The reason for the decline, per Fortune, is that Facebook has been warning investors that their costs will increase and that the company may not maintain their great revenue cycle much longer. The warnings have grown more severe in the fourth quarter as well.

Facebook Hits Limit on Advertisements

Right now, a big concern for Facebook is their limited space for advertisements that they can place on user newsfeeds. While this was announced by Facebook last quarter, it is something they continue to warn people about, especially investors. They stated that their advertisement limit would cut into Facebook’s revenue growth rate and the company feels that ads will play less of a role in their growth overall.

Facebook Spending to Increase

The biggest news from Facebook is that their spending will accelerate in the upcoming year. They stated that they would spend aggressively in 2017 while they revamp their hiring process. Also, technical recruiting jobs will require them to offer better and more attractive packages to attract the top talent.

They also have a few projects underway, says Business Insider. These projects, which include a data center, are going to require funding as of 2017. Therefore, the company plans to have significant expenses.

In 2015, Facebook had warned their shareholders about their increase in spending, and they did increase it for the year as promised.

Some feel that Facebook is establishing a tick-tock pattern, which the odd years marked for their spending increases, and the even years are for revenue growth and cooling off. If that pattern holds true, investors can expect a cooling off period in 2018, with expenses increases again for 2019.

What is Revenue?

Revenue is a company’s income. Revenue recognition occurs during a given period, including any discounted products or returned items. To calculate revenue, a company will multiply the price of goods or services based on the number sold.

Deferred revenue occurs when a company reports income that has not yet actually been earned. For example, the money was reported as a liability for the enterprise, and the amount unearned is deferred on the financial statements.

Marginal revenue, on the other hand, is based on the theory of microeconomics. It is the additional income that is earned by increasing sales of a single unit. It also is referred to as “unit revenue.”

No Aloe Vera Found in Aloe Vera Products? It is True

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Aloe vera productsA recent study that looked at aloe vera gels, used to treat sunburns and other skin irritations, might harm consumers more than do good.

The reason is not that the aloe vera hurts the body, but because the aloe vera gel sold at stores like CVS, Target, and Walmart are lacking aloe vera, says Fox 6 Now. These brands all listed aloe vera juice as their main ingredient, yet the chemical markers that must be present for aloe vera juice were not present during testing.

Aloe vera has long been known for its healing properties. While the list of benefits is extensive, it will do no good if there is no real aloe vera in the products, says the Washington Post. These topical gels sold by retailers are not going to lower blood pressure or cure a sunburn because they consist of no natural aloe vera.

More Skepticism

Aloe vera has been marketed as a natural cure-all for diseases. In fact, people can now purchase aloe vera juice to drink and cure ailments ranging from lowering their blood pressure to relieving heartburn to curing frostbite and sores to stopping the growth of breast cancer, according to the Washington Post. However, the National Center for Complementary and Integrative Health says that those claims are not substantiated by science.

About the Recent Study

The study was conducted by Bloomberg, which found that the favorite brands of gels out there contain no aloe vera. These store-brand aloe vera gels are on the honor system, meaning that if they say there are products containing aloe vera, the FDA trusts them to carry what they say. The FDA does not test these company formulations to see if they contain the ingredients they claim.

This study now proves why consumers must be cautious about what they buy.

When Bloomberg tested the store brand versions of the aloe vera gels, they found that they contained maltodextrin, which is a sugar used to imitate aloe vera gel, but it does not heal the same. Walgreen’s aloe vera gel contained malic acid.

The company that produces these gels, Fruit of the Earth, has disputed the results, reports Fox 6 Now. The company went on to state that they know where the raw ingredients for their products come from, reports The Washington Post.

CVS commented that their supplier reviewed the product and affirmed the product’s authenticity; therefore, they have no intention of stopping sales or pulling the product from their shelves.

23,000 Stores Could Carry Fake Gels

The gels that were assessed from these retailers total to 23,000 stores across the nation that may be selling fake aloe vera to their customers, reports Bloomberg.

Some are scrutinizing the tests saying that the nuclear magnetic resonance test is not reliable because it does not detect the present of certain ingredients and there is no way to test for real aloe after the product is made, says Bloomberg.

Sabra Hummus Recalled for Listeria Again

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Sabra hummus recallHummus is undergoing yet another recall from Sabra. Sabra Dipping Company voluntarily recalls their hummus products that have best by dates up to January 23, 2017, says Fortune.

Sabra hummus products are found in almost all supermarkets in the country, but now they are worried about potential listeria contamination in their products, which is what prompted the recall, says the Miami Herald. This is the second recall in just 20 months, which is a concern for the company.

About the Listeria

The company had first found listeria at one of their manufacturing plants, and the U.S. Food and Drug Administration was immediately notified says Fortune. The bacteria have not been found in finished products, but because it was present at the manufacturing plant, the company is recalling all the goods out of precaution.

Listeria monocytogenes can cause a life-threatening infection. For some, there are little to no symptoms, but pregnant women and small children could suffer from a severe infection.

Listeria recalls growing in numbers over the past few months. In fact, Miami Herald pointed out how several companies in California recalled everything from cheese to ice cream when they discovered listeria in their plants as well.

Back in April 2015, Sabra recalled over 30,000 cases of their Classic Hummus after a random sample tested positive in Michigan for listeria.

The FDA states that Listeria affects pregnant women, elderly adults, children, newborns, and adults who have a weak immune system. Healthy individuals still suffer mild discomfort and gastrointestinal complications. Sometimes it takes days to over a month for symptoms to develop after eating a contaminated source.

Fortune states that symptoms of listeria include fever, stomach cramps, stiffness, nausea, headaches, and diarrhea. Some patients never experience symptoms, especially pregnant women.

Listeria can also affect other portions of the body, including the nervous system. In some cases, these infections are life-threatening, says The Huffington Post.

About the Products Infected

The products that are being recalled, according to The Huffington Post, were made before November 8, 2016, and have their best by date on the product up to January 23, 2017. The date is found on the lid of each Sabra Hummus package.

It is important to note that the company is not recalling their Organic Hummus, Guacamole or Greek Yogurt Dips. There is a full list of the products that may be contaminated on the FDA’s website for consumers.

Sabra Offers Refunds to Those Affected

Sabra is offering refunds to those who were affected by the recall. They can contact Sabra via their 1-800 number or fill out the form on the recall info site for Sabra. The recall will request details about where the product was purchased and the best by date. Then the company will send a refund check to the consumer to buy new Sabra products, says Miami Herald.

Creating New Bonds: Russia and Saudi Arabia Sign Energy Cooperation

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Russia and Saudi Arabia Sign Energy CooperationNew deals are afoot between Russia and Saudi Arabia.

Saudi’s Energy Minister, Khalid al-Falih, invited Russia’s Alexander Novak to meet as their effort to cooperate with non-OPEC members and help stabilize the oil market, reports Reuters.

During the G-20 summit in China, Saudi Arabia and Russia gave a joint statement about their efforts to maintain prices for crude oil, says CNBC. Both countries are aware of the volatility in the market. As one of the biggest producers of oil, Russia has a role in the stability of the market, says Reuters.

Their agreement consists of both countries monitoring the crude oil market prices and ensuring steady investments. They are expected to meet for the first time in November 2016, says CNBC.

In September in Algiers, the Organization of the Petroleum Exporting Countries agreed to cuts for oil output, says Reuters. Their goal is to reduce production by 32.50 to 33.0 million barrels per day. Both countries are aware the impact the low oil prices have had on the producers, including decreased investments, which may lead to a severe barrel supply shortage in the future. If a deficiency occurs, it does not just affect producers; it impacts the globe.

The Impact on Oil Futures and Investments

Future for crude oil grew heavily right after the announcement, says the Wall Street Journal, but shortly after they calmed down. For October, WTI futures stayed steady at three percent higher, but still at about $46 per barrel. In October, Natural Gas futures saw the best growth, increasing to 3.114, says Reuters.

During the energy summit, Russia’s Energy Minister Alexander Novak stated that ceasing production is the best way to stabilize oil prices.

He went on to say that their partnership is a historical event for OPEC and non-OPEC relations. Currently, Saudi Arabia is considered the de facto leader of the oil cartel and Russia is non-affiliated, says the Wall Street Journal.

Production Freezes Have Not Worked in the Past

Similar attempts to freeze production to boost crude oil prices for OPEC have failed in the past, typically because Saudi Arabia kept their outputs higher to keep their market share stable, says CNBC.

Saudi Arabia is not the only non-OPEC to affect these deals. In February 2016, Iran refused to partner with Saudi Arabia for a similar deal between Russia, Qatar, and Venezuela.

For this agreement to work this time around, Iran and Iraq must cooperate. Otherwise the chance of better deals for oil prices and a stable market will fail.

Before the commodities slump in 2014, crude oil futures remained steadily over $100 per barrel. While prices are on the rise, they are nowhere near this amount, reports CNBC – and this seems to be the number that Russian and Saudi Arabia leaders would prefer to see.

Official talks for OPEC begin in Vienna this November, but informal talks have started in Algeria. Russia’s Novak intends to meet with Saudi Arabia’s Falih at both events.

Jared’s Ex-Wife Suing Subway

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The former Subway spokesperson, Jared Fogle, is in the news again. However, this time it is not about him: it is about his wife.

Fogle’s ex-wife is filing a lawsuit against Subway, accusing the company of knowing about her husband’s sexual perversions toward children and ignoring it, reports The Huffington Post.

Subway was notified at least three occasions that their spokesperson had an interest in young children, and that he had exploited them in the past, reports IndyStar. However, Subway failed to act.

About the Lawsuit

Katie McLaughlin had filed for divorce after her husband pleaded guilty to federal charges of child pornography alongside being charged with having sex with a minor, reports CNN. He was sentenced to more than 15 years, per The Huffington Post. She then filed her lawsuit because she and her children had suffered emotional harm from her husband’s behavior and that she should have known about those behaviors before they were married in 2010.

She states that a responsible company would have acted after learning about their spokesperson’s predilections. Instead, Subway ignored their responsibility and allowed him to continue even after receiving complaints.

The Huffington Post reports that Subway took action on no claims issued to them, and they continued to allow their spokesperson to visit hundreds of schools with children. Subway was alerted of Fogle’s behavior as early as 2004, which was six years before he was married and 11 years before being arrested.

Subway’s actions were driven by profits and not for children, claims Fogle’s ex-wife. She stated that they would send their own public relations team to ask Jared about the allegations; instead of meeting with the alleged victim to find out the real story, reports The Huffington Post.

There are some alarming facts cited in the study, including an incident that occurred in 2008. It states that a franchisee contacted the CEO at the time and reported about Fogle’s interactions with children. Fogle had told the franchisee that he liked children “really young,” and admitted that he had sex with children ages nine to 16.

The CEO told the franchisee to stop telling him details, and that Fogle had met someone, so it wasn’t a big deal, reports CNN. The CEO was referring to McLaughlin.

Subway knew about the predatory nature of Fogle, but continued to use him as their paid spokesperson and then assumed that his marrying would keep him from acting the way he was. The suit alleges that Subway was grossly negligent. It also goes on to discuss how Subway created a campaign to stop childhood obesity that included Fogle visiting local schools and that Fogle was depicted as a family man in those campaigns, reports CNN.

McLaughlin has two children, who are three and five years old. She told the Indy Star that her children regularly ask about prison and that when they get older, they will continue to ask for more detail about their father. Therefore, she feels Subway is partially to blame for the position her family is put in.

The Evolution of Minimum Wage

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Minimum wage is nothing new, yet it also hasn’t been around for all that long. The Federal government established the minimum wage in 1938 at 25 cents an hour. While adjusted for inflation that would be about $4.19 cents today, seeing how the minimum wage has changed and what its inflated value would be is rather interesting. It also shows not just the change in a mandated minimum wage, but also how the United States economy changed over the course of the last century.

The Creation of the Minimum Wage

When the Federal government created the minimum wage immediately prior to World War II, it did so to establish some sort of a worker’s net. As workers were paid very little during the time of the Great Depression while profits for major corporations grew, the government wanted to reduce government dependency with the minimum wage.

Of course, the government had very little information to go on when creating the minimum wage. This is why the wage immediately went up to 30 cents the following year, which would be about $5.10 in today’s value. It is possible the wage would have continued to increase, but World War II broke out in 1939. This had several different lasting effects on the wage. First, minimum wage froze and did not increase again until 1945, the year the war ended. It also saw a rise in costs as materials were used for war production. This decreased the value of a worker’s wage. So, while the minimum hourly salary in 1944 was the same in 1939, the $5.10 inflation value dropped to $4.03.

Following World War II

Following the conclusion of World War II, the United States went back to work; production increased, and as such, so did the minimum wage. In fact, outside of the occasional increase in inflation (due to varying reasons ranging from the federal government changing interest rates), the value of the minimum wage continued to increase.

The federal minimum wage officially hit $1 in 1956, which with inflation would be valued at $8.69 (which is greater than the current minimum wage). Now, with the boom of production, inexpensive houses and the plethora of jobs, this helped make this kind of minimum wage possible. Moving jobs to Mexico or India was not a viable option, and production competition from China or Japan didn’t exist either. Just about everything needed in terms of manufacturing came from the U.S.

The New High

Wages continued to increase as the economy boomed. By 1968, the minimum wage was $1.60 an hour, which in modern value would be $10.86 an hour. Of course, this came right before the Vietnam War. Now, currency value decreased during World War II and there was a small dip during the Korean War. War can be good for an economy in some aspects, as the production of war machines did help the United States escape the Great Depression with the creation of millions of new jobs. However, Vietnam proved incredible unpopular as the years went, sending the value of wages in a tailspin. By 1974, the same minimum wage dropped in value to $7.67, meaning someone working 40 hours a week was bringing home $150 less.

In order to help offset these drops, the government started to drastically increase wages. However, the sudden hike in wages (from $1.60 in 1974 to $3.35 in 1989) compounded the issue as the economy could not sustain a nearly double the cost employee raise, which in turn affected the cost of business across the board.

Current Costs

Currently, the minimum wage in the United States is $7.25. It is expected for the wage to continue to go up, and in some locations, nearly double. The economy will have to see if it sustains the double cost increase better than it has ever done in the past, when wages doubled. It may end up being more beneficial to bring about a slower increase to allow the economy to grow into the new wages without drastically inflating the value of a dollar.

How to Check Wells Fargo Accounts for Fraud

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Wells Fargo is under federal investigation for creating secret accounts in order to receive additional federal assistance. In order to meet sales goals and reach set account numbers, the financial company pushed its employees into creating accounts customers did not request (according to the Washington Post). The investigation is currently being conducted by the U.S. attorney’s office. It is yet to be determined if charges will be filed against Wells Fargo. However, for thousands of customers around the United States, it is important to determine whether or not accounts have been created under their name as it may affect future financial decisions. Due to this, every Wells Fargo account holder should investigate their own standing with Wells Fargo to determine if additional accounts exist.

Account Payouts and Fees

As USA Today points out, Wells Fargo has agreed to pay $185 million in fines and to repay customers for account creation fees (which, according to the company, average around $25 per account). Wells Fargo states that while the potential fraud is widespread, the accounts only make up for around one percent of current accounts, so it makes up a very small portion of what the company monitors and maintains. With millions of created accounts under tens of thousands of account holders, looking into this situation isn’t difficult, but should be performed. This situation shows staying on top of a customer’s personal financial information and having a yearly credit report performed is extremely valuable.

Logging into the Account

For a Wells Fargo account holder to check into the issue, they first need to have online access. Most account holders do have online access with log-in information available on monthly billing statements. For individuals who are unable to access their online account or who don’t have access at all, contacting Wells Fargo via phone is necessary to create Internet access.

Once online, the main page of the individual’s Wells Fargo account will highlight all the different accounts, providing an overview of what a customer has under their name. Selecting each account individual brings up added information. If a customer identifies an account they do not recognize or know for a fact they did not create, it is necessary to not only contact Wells Fargo to have it removed, but to inquire about any fees associated with the creation of the account. They may also contact the U.S. attorney’s office in New York to report the account issue if they wish.

Secondary Manor of Checking Accounts

For someone who is unable to access their Wells Fargo account through an Internet connection or simply wants a secondary option to look into the matter, performing a credit report will outline all financial accounts open in the person’s name, including these falsely created accounts at Wells Fargo. It is important to perform a credit report and not a credit score check as the information provided is different. Wells Fargo does state all accounts created under a person’s name will appear online. Having this secondary report can prove beneficial in cross referencing information posted on the online account summary.

It is not determined yet whether or not fines for Wells Fargo will increase at the present time. The $185 million the company agreed to pay out is self sanctioned, so the federal government may determine the bank needs to pay out more and offer additional restitution to clients it created accounts for. For anyone who has had such an account created, it is important to maintain documentation on the account, including any and all fees associated with it. Should the U.S. attorney’s office decide to file formal charges against the company in a class action lawsuit, this documentation will help an account holder receive proper financial compensation. It should be noted Wells Fargo is not in trouble of shutting down, so it isn’t necessary to move funds from the account to other banks due to the situation.

Apple Goes Green in Florence, Arizona

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Apple says it takes the same innovative approach toward the environment as it does with its products. It declared itself to be committed to reducing its carbon footprint by creating new and fresh solar energy initiatives.

Greener materials will be used for the manufacturing processes and to create better products. Apple says mindfulness is a key component of these initiatives, including taking care of working forests and maintaining sustainable resources. So far, this all sounds wonderful.

It looks like this innovation isn’t merely a promise from Apple. The company has actually begun to go green, just as it said it would. A ‘humble beginning’ can hardly describe the project that was unveiled to the public on Tuesday the 20th of September.

On the sunlit plains of Arizona, in the national historical district of Florence, solar cells and glassy mirrors are presenting a very different view from that of the sparkly and shiny casinos half-an-hour’s drive away. The world’s largest tech enterprise sticks to its word and taps into the most available energy source in the region. Sun is what this place has in abundance. It matches Apple’s noble ambitions to power up all of its functions – offices, outlets, and data centers – with green energy. Renewables are the name of the game.

On Monday, a company VP in charge of environmental issues announced that nearly all of Apple’s worldwide facilities — 93% to be precise — rely fully on natural energy. Natural energy sources include sun, wind, and water.

Florence, Arizona, is the place where Apple goes green. A huge power plant, which covers a space of 300 acres, stretches across the flat of Pinal Country. What used to be a secretive project now ensures that when Apple’s customers consult their faithful Siri, it has no negative impact whatsoever on the Earth’s climate.

Apple’s tremendous investment is to be admired. This Tuesday, the Salt River Project was finally revealed after a great deal of secrecy throughout construction. The Phoenix-based plant is supposed to ease off the use of electricity in Apple’s Mesa data center. It looks like it won’t have trouble fulfilling that goal.

This is the first time since Apple announced in 2015 an intent to run its facility with solar power that we see the meaning of their intentions. It’s impressive, to say the least.


The power plant is meant to sell energy to SRP, but the costs of this are still to be disclosed. Recently SRP’s board members have agreed to turn to Bonnybrooke Plant for purchasing their power for an undisclosed price. Under the shining sun, 50 megawatts of the plant’s solar capacity are sufficient to power up to 12,500 homes in one go.

A similar deal was initiated with the Sandstone Solar Plant, which is the one next to Florence. This time, the price was revealed to be 5.3 cents per kWh. According to SRP, the agreement with Apple is fair for its consumers; they are always paying for any power SRP acquires. Through its spokesman, Scott Harelson, SRP confirms that it will be paying a wholesale or market price so that the product’s purchase won’t have any negative impact on their customers.

With Bonnybrooke’s generation of kilowatt hours standing at an estimated 151 million a year, it will cost SRP around $8 million per year. Simple math shows us that it will round up to $160 million total during the 20 years of the contract.

Controlling Wild Horse Population in the U.S.

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Wild horse populationIn an attempt to control the number of wild horses spread across the country, the United States government has made a proposal to euthanize the off-range animals.

The recommendation came from the National Wild Horse and Burro Advisory Board to the Bureau of Land Management; the board said the best course of action would be to euthanize or sell excess horses which are currently in off-rage corrals and pastures.

The total number of unadoptable horses and burros is over 45,000; these animals are around 5 years old and less appealing to buyers and adopters.

According to The Wild Free-Roaming Horses and Burro Act of 1971, wild horses and burros are to be “protected from capture, branding, harassment, and death” by the Bureau of Land Management (BLM). The agency may humanely destroy old and sick animals, as well as humanely capture and remove the animals in order to restore the land.

If an “overpopulation exists on a given area of the public lands,” the proper action can be taken in order to protect natural resources from deterioration.

Wild horse and burro herds have the potential to double in size every four years or so, and as of now there is no effective method of fertility control in order to manage the population.

The largest population of off-range horse and burros is currently on Nevada land, while the smallest group remains in Montana. The total population of roaming animals number over 67,000 and stretches across western ten states.

In fiscal year 2015, the BLM spent almost $50 million in care of off-range animals, making up two-thirds of the wild horse and burro budget.

In response to the government’s ruling, the Humane Society of the United States has launched a petition which aims to call for the protection of the animals. The petition is directed toward the Secretary of Interior and the director of BLM. In a release dated September 9, the senior VP of Programs and Innovations with the organization stated that “the decision…is a complete abdication of responsibility” and pointed to “long-term mismanagement” within the BLM as a contributing factor to the current situation.

In addition to the Humane Society, other animal rights groups have spoken out against the proposal, including In Defense of Animals.

The president of that animal welfare organization stated that “this is the final straw” and “we call on the government to immediately halt the mass horse slaughter plans and revoke BLM’s right to manage public lands” due to ineptitude and failures to properly protect horses.

According to the BLM website, the Bureau’s advisory board is made up of local ranchers, public land users, state and local government officials, and environmental groups. One board member had taken to social media in order to justify the decision and further explain the “plight” of mustang horses while also welcoming feedback and ideas.

News outlets have incorrectly stated that the government “voted” to have the horses euthanized, but this is incorrect. The action currently stands as a recommendation to the BLM and no decision has been made as of yet. 

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