Tag Archives: request

Congress Pledges To Decide Phone Encryption Issue Pitting Apple, FBI

Advocates for law enforcement and personal privacy on Tuesday clashed at a congressional hearing weighing the issue of smartphone encryption, a debate most recently pitting Apple against the FBI. Speaking at the hearing, U.S. Rep. Bob Goodlatte, R-Va., said the matter is “too complex to be left to the courts and must be answered by Congress.” The House Judiciary Committee held a hearing titled “The Encryption Tightrope: Balancing Americans’ Security and Privacy.” Witnesses testifying at the inquiry included FBI Director James Comey and Apple ( AAPL ) General Counsel Bruce Sewell. Comey and Sewell presented their sides in a case being played out in a federal court in California. A U.S. magistrate on Feb. 16 ordered Apple to assist the FBI in hacking an iPhone belonging to one of the two shooters in the Dec. 2 massacre in San Bernardino, Calif. Apple is seeking to have the order rescinded. Comey said the FBI is simply pursuing every avenue in its investigation to determine possible accomplices and links to terror groups. He admitted the case could set a precedent for other law enforcement agencies and governments to press Apple to crack its encryption. But he says national security concerns win out in this case. Sewell said the court’s order is government overreach and would force it to write special software for the FBI to get around its security protections. It also would lead to security vulnerabilities that would threaten the security of personal and financial data stored on all iPhones its customers use, he said. CEO Tim Cook, who wasn’t at the hearing, has led Apple’s fight in this case. Rep. John Conyers, D-Mich., suggested the FBI could be exploiting a national tragedy to pursue a change in the law. He said the FBI appeared to be taking an end run around the legislative branch with its judicial requests to hack smartphones. Comey said he isn’t asking for Apple to remove the encryption on its iPhones, only to give it an opportunity to figure out the password without the risk of the data being erased after 10 incorrect tries and to remove time barriers between password tries. It also wants Apple to allow the FBI to electronically submit password tries in a “brute force” attack on the device. “We are asking Apple to take the vicious guard dog away and let us pick the lock,” he told the panel. Some members of the committee sided with law enforcement. U.S. Rep. Trey Gowdy, R-S.C., said he didn’t want to see smartphones become “evidence-free zones.” Sewell said Apple continues to improve the security on its devices because customers demand it. They don’t want their data accessed by cybercriminals and spies, he said. “We see ourselves as being in an arms race with criminals, cyberterrorists and hackers,” he said. “We’re trying to provide a safe and secure place for the users of our devices to be assured that their information cannot be accessed, cannot be hacked or stolen.” On Monday, a federal judge in a Brooklyn drug case ruled that the Justice Department cannot force Apple to provide the FBI with access to locked iPhone data. If the FBI gets access to encrypted iPhones, terrorists are likely to move to encrypted apps to avoid detection, Sewell said. The issue is popping up elsewhere. Early Tuesday, Brazilian federal police arrested the head of Facebook ’s ( FB ) Latin America operations for not complying with police requests to access WhatsApp messages linked to an organized-crime and drug-trafficking case.

Tesla Stock Falls As Citron Shorts; IBD 50 Car Chips Gain

Tesla Motors ( TSLA ) stock wiped out an early gain Tuesday to close down almost 3% as short-selling outfit Citron Research panned the electric-car maker, ahead of the planned March 31 introduction of its mass-market Model 3. Meanwhile, chipmakers on the IBD 50 list that work in the connected cars field gained. “Citron shorting $TSLA,” Citron said in an afternoon  Twitter ( TWTR ) tweet. “Supply AND demand problems should take down to $100 by years end. News flow all around does not look good for stock.” Citron shorting $TSLA Supply AND demand problems should take down to $100 by years end. News flow all around does not look good for stock — Citron Research (@CitronResearch) March 1, 2016 Tesla stock had been heading up to meet its 50-day line this week, just about touching it before the Citron report, but the electric-car maker holds a low IBD Composite Rating of 22 out of a possible 99. Meanwhile, on Tuesday, Tesla tweeted about how the MIT Technology Review has now ranked its Autopilot self-driving system among the top 10 Breakthrough Technologies of 2016, along with immune engineering and genetic editing of plants. Tesla Autopilot named an MIT @techreview Top 10 Breakthrough Technologies 2016 https://t.co/u3C9gJA0Ba — Tesla Motors (@TeslaMotors) March 1, 2016 Tesla has moved forward with autonomous-car technology, but partner Mobileye ( MBLY ) got hit in December after Citron called the camera-based car safety technology provider its 2016 “short of the year.” Car Chipmakers Go North Mobileye stock closed up 2.2% Tuesday but remained nearly 50% off its August all-time high. Two chipmakers that work in connected cars and self-driving cars on the IBD 50 list of leading growth stocks rose in the stock market today :  Nvidia ( NVDA ), which is also a Tesla partner, and  Broadcom ( AVGO ). Both companies serve a variety of fields and are  Apple ( AAPL ) suppliers. Automakers talked up some of the technology in car debuts at this week’s Geneva International Motor Show — such as Daimler ( DDAIF ) with a Mercedes-Benz E-Class that can brake and park itself. Tesla’s also there, showing off its Model X crossover SUV. Nvidia, which counts Tesla and Mercedes among more than 50 carmaker partners, surged 4.4% Tuesday. Broadcom gained 3.3%, ahead of its Thursday afternoon earnings report. Broadcom stock has been consolidating and is about 8% under a buy point, while Nvidia is about 4% away and has just formed a cup base. Mobileye gets a 62 Composite Rating from IBD. Nvidia gets a best-possible 99 and Broadcom a 98. Other chipmakers also working in the car space rallied Tuesday, too: Qorvo ( QRVO ) by 5.1%, NXP Semiconductors ( NXPI ) by 4.2% and Skyworks Solutions ( SWKS ) 5.9%. Tesla stock closed down 2.9% Tuesday at 186.35. RELATED: Tesla Goes To Geneva Motor Show: What It Means For Model X . Image provided by Shutterstock .

Yahoo Stock Keeps Climbing On Sale Talk, Alibaba Buyback Chatter

Yahoo ( YHOO ) stock climbed for the fifth straight trading day on Tuesday amid chatter that China e-commerce giant Alibaba Group ( BABA ) might buy back the valuable stake Yahoo now holds in it, according to a media report. Rumors that Alibaba might buy back its stake from Yahoo have emerged before, although some observers say such a transaction is unlikely because of high tax implications for Alibaba. Yahoo has said it is approaching buyers potentially interested in all or part of the company — and Alibaba’s recent financial moves have some investors wondering if the Chinese conglomerate is ready to make a play for Yahoo , according to a report in Variety. Alibaba senior executives Jack Ma and Joe Tsai said on Monday that they will spend a combined $500 million to buy company stock. It will be part of a $4 billion stock-buyback plan that Alibaba announced in August. Comcast ( CMCSA ), Verizon ( VZ ) and AT&T ( T ) “remain the leading candidates to acquire Yahoo,” said Mizuho analyst Neil Doshi in an industry note this week, adding that those companies could offer a higher price than private equity groups, wield huge subscriber bases across Internet and TV, and operate leading mobile services. Time ( TIME ) has also been mentioned as a possible Yahoo acquirer. Yahoo stock was up just over 3% ahead of the closing bell in the  stock market today , near 33, while Alibaba was up nearly 3%. Yahoo has gained 25% since early February, but is down 26% from where it was trading this time last year. Yahoo shares also climbed more than 3% on Monday. Yahoo’s Asian assets — comprised of its Alibaba holdings and a 35.5% stake in Yahoo Japan — represent the vast majority of Yahoo’s $3.8 billion market value. Yahoo owns a 15% stake in Alibaba, or about 384 million shares. Asked about Alibaba’s interest in buying back its shares from Yahoo, Alibaba Executive Vice Chairman Joe Tsai said during an October call with analysts that Alibaba would buy back its shares “if it is very significantly accretive to our shareholders and that’s the principal we operate on.” Scott Rostan, founder and CEO of Training the Street, a group teaching corporate valuation and merger and acquisition skills, told IBD this week that Alibaba’s buyback of its shares from Yahoo “is definitely possible.” He added: “They could buy back 15% of their own stock and then (effectively) own Yahoo, which would be a very ironic twist.” In 2012, Alibaba bought about half of Yahoo’s then-40% stake in a deal valued at about $7.6 billion with the backing of China’s sovereign-wealth fund, China Investment Corp., and a clutch of private-equity firms. Because Alibaba’s purchase of the remainder could result in a huge tax bill on Yahoo’s gains from the Alibaba, “I think they have no interest,” Shanghai-based 86Research analyst Sean Zhang told the Wall Street Journal in December. “They will continue to focus on growth, focus on building a more competitive company,” Zhang said. Alibaba said that it had $18.2 billion in cash, cash equivalents and short-term investments as of December 2015. Yahoo’s directors are close to offering at least two board seats to activist hedge fund Starboard Value in order to avert a proxy fight, according to a report on Friday in the New York Post. Starboard founder Jeff Smith is looking to oust Yahoo CEO Marissa Mayer and force a sale of the company’s core Internet business. Analysts say Yahoo is likely to lose advertising dollars to Facebook ( FB ), Alphabet ( GOOGL )-owned Google and high-profile startups like Snapchat and Pinterest. On Monday, Yahoo also said that it may have to write-down the goodwill value of Tumblr , more than two years after the Web pioneer spent $1.1 billion to buy the microblogging site. Yahoo said earlier that it took a $230 million impairment charge related to Tumblr and was considering strategic alternatives for its core Internet business.