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Wheeler On FCC Privacy Proposal: This Is About ISPs And Only ISPs

Federal regulators moved forward Thursday with a proposal to require that Internet service providers get customer consent to collect data for targeted advertising  — a policy that ISPs claim would put them at a disadvantage vs. Internet companies such as Alphabet ’s ( GOOGL ) Google or Facebook ( FB ). The Federal Communications Commission, with three Democratic appointees and two Republicans, voted 3-2 along party lines to open a public comment period on the consumer privacy proposal. The agency could formally approve the rules by year-end. Comcast ( CMCSA ), AT&T ( T ) and Verizon Communications ( VZ ) are among ISPs that would be impacted by FCC Chairman Tom Wheeler’s proposal. “To be clear, this is not regulating what we often refer to as the edge — meaning the online applications and services that you access over the Internet, like Twitter and Uber,” said Wheeler in a statement. “It is narrowly focused on the personal information collected by broadband providers . . .  this is about ISPs and only ISPs. “And this proposal does not prohibit ISPs from using and sharing customer data — it simply proposes that the ISP first obtain customers’ express permission before doing so.” The FCC in early 2015 reclassified broadband services as a public utility, using Title II of the Communications Act of 1934.  AT&T, Comcast and industry trade groups are challenging the net neutrality rules in federal court, with a court ruling expected in April. The FCC’s new consumer privacy proposal seeks broadband authority under Section 222 of the Communications Act of 1934. Under the rules, providers would need to tell consumers what information is being collected, how it is being used and when it will be shared. While the Federal Trade Commission has rules to protect consumer privacy, the FCC says more regulation is needed. Commissioner Ajit Pai, a Republican, said Thursday that there is no good reason to single out broadband providers for regulations, while not regulating websites. The plan “favors one set of corporate interests over another,” he said.

Alphabet Moonshot Company Nest Missed Revenue Outlook: Report

Employees are flying away from Nest, the smart home device maker that was acquired by Google for $3.2 billion in 2014 to compete with Apple ( AAPL ) in that growing market, but which isn’t generating the revenue that Google parent company Alphabet ( GOOGL ) had expected. A Re/Code report Thursday said that Nest’s initial three-year budget will run out at the end of 2016 unless Alphabet agrees to continue funding its Internet-connected home device division, and employees are nearing the point when their stock vests, meaning those workers will be able to finally cash in their shares. “Once the vesting period sunsets, some key executives could feel free to depart, something that several people close to the company said is very possible given the growing crisis,” said Re/Code . Nest’s original budget was around $500 million annually, the report said, and Nest’s revenue has fallen short of expectations. According to Re/Code, the company generated $340 million in revenue in 2015 — far below Wall Street estimates, which projected $400 million to $672 million in revenue. While Nest beat the $300 million internal sales target that Google set for the company when it was acquired, it made its numbers only by acquiring security camera maker Dropcam, according to the report. At a November meeting for engineers at Nest’s Palo Alto, Calif., headquarters, the company’s co-founder Matt Rogers said he was “losing sleep” over an exodus of staffers—roughly 70 in about six to 12 months, out of its workforce of roughly 1,000, according to a report in The Information last week. Nest CEO Tony Fadell allegedly pointed out that many of those departing employees had come from either Google or from Dropcam, which Nest bought in mid-2014. According to Business Insider, Fadell went on to say that about half of Dropcam’s 100 employees had left and that “a lot of the employees were not as good as we hoped. … Unfortunately, it wasn’t a very experienced team .” Alphabet’s executives have repeatedly said they intend to hold the lid on spending by the company’s speculative “moonshot” companies, a wide-ranging group that includes Nest. Alphabet, created last year as the parent company for Google and non-core businesses, broke out financials for its non-core ‘Other Bets’ long-shot subsidiaries for the first time in Q4, showing they lost $3.57 billion as a group in 2015, up from a $1.94 billion loss in 2014. Google’s ‘Other Bets’ segment posted revenue of $448 million in 2015, up 37% year over year, with the majority of revenue generated by the company’s smart home device group Nest, its fast Internet service Google Fiber and its health segment Verily, Alphabet and Google CFO Ruth Porat said on the company’s earnings conference call with analysts in February. Nest’s smart thermostat is its flagship product, while the company also earns revenue from its energy partnerships with utility companies. Nest also sells its Protect smoke detector and Nest Cam, the home-monitoring video successor to Dropcam. Other products, primarily in home security, have long been in the works, Re/Code said . Alphabet stock was down a fraction in midday trading in the stock market today , near 763. Apple stock was also flat, near 109.

March Madness: ‘Final Four’ IBD 50 Stock Performers This Month

After college basketball teams duked it out all month long during “March Madness,” the four best performing teams will compete at the NCAA Final Four this weekend. Here’s a look at the IBD 50’s “Final Four” performers this month: Inphi ( IPHI ), Broadcom ( AVGO ),   Ulta Beauty ( ULTA ) and AMN Health ( AHS ). Inphi Leads IBD 50 Pack Inphi is up 33% in March. The chipmaker received bullish analyst commentary this month, including an upgrade to buy from Deutsche Bank, as Inphi announced new products. Shares cleared a double-bottom base buy point on March 17, and gapped up to clear a secondary entry just a few sessions later. The stock is now trading near all-time highs, down 1.4% Thursday. Apple Supplier Climbs On Earnings Apple ( AAPL ) supplier Broadcom has gained 17% this month, fueled by a first-quarter earnings beat and estimate-topping second-quarter guidance. Shares cleared a double-bottom base buy point on March 4 and climbed out of an 8-month-long consolidation less than two weeks later. The stock set another all-time high intraday, turning down 0.9% in the afternoon. Meanwhile, Apple fell fractionally Thursday. Ulta Gains Look Good Ulta Beauty also gained 17% for the month. Nearly all of those gains came on March 11, after the beauty products retailer issued a view-topping quarterly report the prior evening. The move helped the stock break out of a consolidation base with a 188.58 buy point. The stock has traded in a tight range since, and is still in buy range as it dipped 0.4% Thursday. Health Care Stock AMN Powers Higher AMN Healthcare jumped 19% in March, building on gains from the health care staffing firm’s better-than-expected earnings report in February. Shares reclaimed their 200-day line near the start of the month and have been able to find support above that level as they continued to climb higher. The stock hit a six-month high on Thursday, up 0.6% in afternoon trading, and is trading 9% below its high reached last September. Where Are Facebook, Alphabet? The IBD 50 list also sports names like Facebook ( FB ) and Google owner Alphabet ( GOOGL ), which have racked up modest gains this month. Facebook has risen 7% and Alphabet has also gained 7%. Both are working on the right side of consolidations, with Facebook particularly close to a buy point. Facebook and Alphabet shares fell fractionally Thursday afternoon. Image provided by Shutterstock .