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Facebook’s Volatile Year in One Giant Chart

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Facebook's Volatile Year Explained in One Chart

Facebook’s Volatile Year in One Giant Chart

View the high resolution version of today’s graphic by clicking here.

Facebook has found itself in the headlines a lot in 2018, but not for reasons investors are likely to be excited about.

The tech giant battled privacy scandals, policy changes, and dwindling user engagement throughout the year, and in July the company made history with an overnight drop of $119 billion in market capitalization – the single largest drop in U.S. history.

We did today’s chart in conjunction with Extraordinary Future 2018, a tech conference featuring Cambridge Analytica whistleblower Christopher Wylie as a speaker on Sep 19-20 in Vancouver, BC, to show Facebook’s volatile year in perspective.

Here is a recap of some of the more major events that prompted volatility so far in 2018:

Zuckerberg Sells Shares

Facebook CEO Mark Zuckerberg drew attention in September 2017 when he announced plans to systematically sell off up to $12 billion in stock – nearly 50% of his personal stake.

It’s all part of a plan to transfer the bulk of his stake to the Chan-Zuckerberg Initiative. Zuckerberg and his wife Priscilla Chan founded the philanthropic company at the end of 2015 with the stated focus of “personalized learning, curing disease, connecting people and building strong communities.”

Zuckerberg started unloading stock with an initial sale of 1.14 million shares in February 2018 – the biggest insider sale of shares of any public company in the preceding three months. While analysts didn’t see any red flags for the sale at the time, the volume came when the share price needed all the stability it could get.

Facebook’s Privacy Scandal

On March 16, The Guardian and The New York Times published joint exposés reporting that 50 million Facebook user profiles were harvested by Cambridge Analytica without user knowledge. Later estimates pegged that number at closer to 87 million profiles.

Facebook soon found itself the focus of an investigation from the Federal Trade Commission, and published full-page ads in British and American newspapers to apologize for a “breach of trust”. As Facebook scrambled to regain user trust, share values dropped by 17.8% over the 10 days after the scandal broke.

In April, Zuckerberg appeared before Senate to answer tough questions about Facebook’s privacy policies. The CEO’s testimony restored some faith in the stock, and it gained some traction over the next three months, but the damage was already done.

Facebook’s History-Making Stock Drop

Facebook posted disappointing Q2 results on July 24, attributing their sluggish quarter to dropping user numbers and continued privacy challenges driven by General Data Protection Regulation (GDPR) deadlines.

The report triggered an overnight stock drop of 19% – the single biggest one-day value loss ($119 billion) in U.S. stock market history.

As a result of the rout, Zuckerberg’s personal fortune dropped by nearly $16 billion, an amount that exceeds the total market cap of companies like Dropbox or Snapchat.

Where to from here?

Is this the end for Facebook? The halo may have slipped from the social media golden child, but the company may not be in danger quite yet.

The company’s namesake social network is not the only sandbox it plays in, and the company’s diversity is just the thing that might keep Facebook afloat amidst changing social media sentiment.

Facebook’s purchases of Instagram and WhatsApp are paying off, as those platforms continue to grow steadily. Meanwhile, the investment in Oculus Go could be a game-changer for VR, bringing standalone virtual reality systems to the home market. Finally, Facebook is leveraging its main social network as a place to fine tune algorithms and pave the way for new developments in artificial intelligence and machine learning.

Despite Facebook’s challenges in the realm of social media this year, its expansion into other emerging technologies might help the company secure its future.

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Energy

All the World’s Coal Power Plants in One Map

Today’s interactive map shows all of the world’s coal power plants, plotted by capacity and carbon emissions from 2000 until 2018.

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All The World’s Coal Power Plants in One Map

The use of coal for fuel dates back thousands of years.

Demand for the energy source really started to soar during the Industrial Revolution, and it continues to power some of the world’s largest economies today. However, as the clean energy revolution heats up, will coal continue to be a viable option?

Today’s data visualization from Carbon Brief maps the changing number of global coal power plants operating between 2000 and 2018. The interactive timeline pulls from the Global Coal Plant Tracker’s latest data and features around 10,000 retired, operating, and planned coal units, totaling close to 3,000 gigawatts (GW) of capacity across 95 countries.

On the map, each circular icon’s size represents each plant’s coal capacity in megawatts (MW). The data also highlights the type of coal burned and the CO₂ emissions produced as a result.

A Precarious Power Source

Throughout its history, coal has been used for everything from domestic heating and steel manufacturing, to railways, gas works, and electricity. The fuel played a pivotal role in powering economic development, and had a promising future with a flurry of plant openings.

However, in 2016, coal output dropped by 231 million tons of oil equivalent (Mtoe). Combined with a rapid slowdown of new plants being built, total coal units operating around the world fell for the first time in 2018.

With the remaining fleet of plants operating fewer hours than ever, plant closures have been triggered in South Africa, India, and China—steadily eroding coal’s bottom line. Industry trends have also forced a wave of coal companies to recently declare bankruptcy, including giants such as Peabody Energy and Alpha Natural.

Can Coal Compete with Clean Energy?

Today, coal is experiencing fierce competition from low-priced natural gas and ever-cheaper renewable power—most notably from wind and solar. Further, solar power costs will continue to decline each year and be cut in half by 2020, relative to 2015 figures.

chart

Source: Lazard

Natural gas surpassed coal as America’s #1 power source in 2016, with the total share of power generated from coal tumbling from 45% in 2010 to 28% in 2018. By next year, the role of coal is expected to be further reduced to 24% of the mix.

On the interactive visualization, the decline of coal is especially evident in 2018 as plant closures sweep across the map. The chart shows how several countries, notably China and India, have been closing many hundreds of smaller, older, and less efficient units, but replacing them with larger and more efficient models.

As of today, China retains the largest fleet of coal plants, consuming a staggering 45% of the world’s coal.


Use the above slider to see the difference between China’s coal plants in 2000 with projected future capacity.

Towards a New Reality

Coal is the most carbon intensive fossil fuel, and for every tonne of coal burned there are approximately 2.5 tonnes of carbon emissions. The International Energy Agency states that all unabated coal must be phased out within a few decades if global warming is to be limited.

Despite these warnings, global coal demand is set to remain stable for the next five years, with declines in the U.S. and Europe offset by immediate growth in India and China. The latter are the main players in the global coal market, but will eventually see a gradual decline in demand as they move away from industrialization.

A total phaseout of unabated coal is planned by 14 of the world’s 78 coal-powered countries, with many of these countries working to convert coal capacity to natural gas.

As the price of premium solar generation drops steadily, and innovation in renewable energy technology becomes more prominent, the world is shifting its attention to a clean energy economy. A global revival of coal looks less and less likely—and the fossil fuel might very well one day become obsolete.

Editor’s Note: The map uses WebGL and will not work on some older browsers. The map may also fail to load if you are using an ad-blocking browser plugin.

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Cannabis

The Big Pharma Takeover of Medical Cannabis

The Big Pharma industry is entering the cannabis space, by swapping patients for patents. But what are the impacts of such a takeover?

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The Big Pharma Takeover of Medical Cannabis

As evidence of cannabis’ many benefits mounts, so does the interest from the global pharmaceutical industry, known as Big Pharma. The entrance of such behemoths will radically transform the cannabis industry—once heavily stigmatized, it is now a potentially game-changing source of growth for countless companies.

Today’s infographic comes to us from CB2 Insights, and explores how and why the notorious Big Pharma are interested in the nascent cannabis industry.

Who are “Big Pharma”?

The term refers to some of the largest pharmaceutical companies in the world, considered especially influential as a group. To give a sense of their sheer size, the market cap of the top 10 Big Pharma companies is $1.7 trillion—Johnson & Johnson being the largest, with a market capitalization of $374 billion.

So far, Big Pharma has watched the cannabis industry from the sidelines, deterred by regulatory concerns. What we are seeing now is the sleeping giant’s takeover slowly intensifying as more patents, partnerships, and sponsored clinical trials come to fruition.

Could Cannabis be Sold Over the Counter?

The cannabis plant has been used in medicine for 6,000 years. However, there is still considerable debate around the role it plays in healthcare today. There are currently almost 400 active and completed clinical trials worldwide surrounding cannabidiol (CBD), a type of cannabinoid that makes up 40% of the cannabis plant’s extract.

Cannabis relies on CBD’s therapeutic properties, and recent studies suggest it may be useful in combating a variety of health conditions, such as:

  • Epilepsy
  • Schizophrenia
  • Multiple sclerosis
  • Migraines
  • Arthritis
  • Cancer side effects

As of 2019, 33 states and the District of Columbia have legalized cannabis for medical use. Its potential for pain management has led some experts to recommend it as an alternative to addictive painkillers, with one study of 13 states showing opiate-related deaths decreasing by over 33% in the six years since medical cannabis was legalized.

As the industry evolves, data is becoming increasingly important in understanding the potential of cannabis—both as a viable medical treatment, and as a recreational product. The shift away from anecdotal evidence towards big data will inform future policies, and give rise to a new era of consumer education.

Big Pharma’s Foray into Cannabis

Further legalization of cannabis will challenge Big Pharma’s bottom line, and poach more than $4 billion from pharma sales annually. In fact, medical cannabis sales are projected to reach $5.9 billion in 2019, from an estimated 24 million patients.

Seven of Canada’s top 10 cannabis patent holders are major multinational pharmaceutical companies, a trend that is not unique to Canada.

Company Rank🇨🇦 Canadian PatentsCompany Rank🇺🇸 U.S. Patents
1. Novartis211. Abbvie59
2. Pfizer142. Sanofie39
3. GW Pharmaceuticals133. Merck35
4. Ericsson134. Bristol-Myers Squibb34
5. Merck115. GW Pharmaceuticals28
6. Solvay Pharmaceuticals76. Pfizer25
7. Kao Corporation77. Hebrew University of Jerusalem19
8. Ogeda SA78. Roche17
9. Sanofi69. University of Connecticut16
10. University of Connecticut610. U.S. Health and Human Services13

It comes as no surprise that many pharmaceutical giants have already formed strong partnerships with cannabis companies, such as Novartis and Tilray, who will develop and distribute medical cannabis together in legal jurisdictions around the world.

Data is the Missing Link

While the body of knowledge about the many uses of cannabis continue to grow, clinical evidence is key for widespread adoption.

Products backed by data will be a defining criteria for major companies to come into the market en masse. And ultimately, Big Pharma’s entry could accelerate public understanding and confidence in cannabis as a viable option for a range of ailments, and mark the next major milestone for the industry.

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