WhatsApp Username Feature Raises Concerns in India
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 42 minutes ago
0mins
Source: CNBC
- Privacy vs. Security Risks: Following the rollout of WhatsApp's username feature, Meta Platforms faced warnings from the Indian government about potential increases in cybercrime, particularly fraud and impersonation attacks, leading to a demand for a pause in the feature's launch to address security concerns.
- Implementation Details: Although users still need to provide a phone number, Meta stated that it would implement multiple protective measures, such as limiting new contacts, blocking repeated username guessing, and detecting suspicious activities; however, the feature is not yet live and is expected to be rolled out slowly later this year.
- Surge in Cybercrime: According to the Indian government, cybercrime incidents surged to nearly 2.3 million in 2024, doubling from 1 million in 2022, with WhatsApp's user base exceeding 500 million in India, making it subject to increased government scrutiny.
- Balancing Regulation and Innovation: As cybercrime rises, government oversight of digital platforms intensifies, with experts noting that finding a balance between protecting user privacy and fostering innovation will be a significant challenge moving forward.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 563.290
Low
655.15
Averages
824.71
High
1117
Current: 563.290
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Privacy vs. Security Risks: Following the rollout of WhatsApp's username feature, Meta Platforms faced warnings from the Indian government about potential increases in cybercrime, particularly fraud and impersonation attacks, leading to a demand for a pause in the feature's launch to address security concerns.
- Implementation Details: Although users still need to provide a phone number, Meta stated that it would implement multiple protective measures, such as limiting new contacts, blocking repeated username guessing, and detecting suspicious activities; however, the feature is not yet live and is expected to be rolled out slowly later this year.
- Surge in Cybercrime: According to the Indian government, cybercrime incidents surged to nearly 2.3 million in 2024, doubling from 1 million in 2022, with WhatsApp's user base exceeding 500 million in India, making it subject to increased government scrutiny.
- Balancing Regulation and Innovation: As cybercrime rises, government oversight of digital platforms intensifies, with experts noting that finding a balance between protecting user privacy and fostering innovation will be a significant challenge moving forward.
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- Surge in Trading Volume: The company's trading volume reached 45.1 million shares, approximately 159% above the three-month average of 17.4 million shares, reflecting strong investor interest in Meta's cloud business outlook, which may enhance future market performance.
- Increased Capital Expenditure Forecast: Meta has raised its 2026 capital expenditure forecast to between $125 billion and $145 billion, highlighting the company's commitment to AI infrastructure, prompting investors to assess whether this will yield sustainable financial returns.
- Earnings Report Anticipation: Investors are keenly awaiting Meta's next earnings report for insights into revenue growth, margins, and capital expenditures, particularly regarding whether AI infrastructure spending can deliver substantial financial returns.
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- Privacy vs. Security Risks: Following the rollout of WhatsApp's username feature, Meta Platforms faced warnings from the Indian government about potential increases in cybercrime, particularly fraud and impersonation attacks, leading to a demand for a pause in the feature's launch to address security concerns.
- Implementation Details: Although users still need to provide a phone number, Meta stated that it would implement multiple protective measures, such as limiting new contacts, blocking repeated username guessing, and detecting suspicious activities; however, the feature is not yet live and is expected to be rolled out slowly later this year.
- Surge in Cybercrime: According to the Indian government, cybercrime incidents surged to nearly 2.3 million in 2024, doubling from 1 million in 2022, with WhatsApp's user base exceeding 500 million in India, making it subject to increased government scrutiny.
- Balancing Regulation and Innovation: As cybercrime rises, government oversight of digital platforms intensifies, with experts noting that finding a balance between protecting user privacy and fostering innovation will be a significant challenge moving forward.
See More
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- Oil Prices Hit Four-Month Lows: Brent crude oil prices dropped 1% to $70.88 per barrel as President Trump noted positive developments in talks with Iran, potentially increasing supply and exerting downward pressure on oil prices, which could affect investor sentiment in the energy sector.
- Focus on U.S. Jobs Data: Investors are closely watching upcoming U.S. non-farm payroll data, with expectations of 110,000 new jobs in June and an unemployment rate steady at 4.3%, as job growth expectations may influence the Fed's rate hike decisions, impacting global market sentiment.
- Rising U.S. Treasury Yields: U.S. 2-year Treasury yields rose 2 basis points to 4.1806%, while 10-year yields increased by 2 basis points to 4.4911%, reflecting market expectations for strong job data that could elevate rate hike probabilities, thereby influencing stock market performance.
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- Surge in AI Spending: The five largest hyperscalers are projected to spend over $700 billion on AI infrastructure in 2026, with Microsoft alone nearing $190 billion, leading to capital expenditures rising from 70% of operating cash flow in 2025 to nearly 100%, which could impact future shareholder returns.
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- Market Sentiment Shift: Following the cloud business news, Meta's stock closed up 8.8% on Wednesday, marking its best performance in nearly six months, although it remains down 7% year-to-date, indicating a shift in investor sentiment towards optimism about the future.
- Competitive Landscape Change: Meta's cloud infrastructure plans could rival industry leaders like Amazon AWS, Microsoft Azure, and Google Cloud, with analysts believing this will enhance Meta's revenue and operating income while strengthening its strategic position in the AI sector.
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- Increased Market Competition: This initiative will place Meta in direct competition with AI infrastructure providers like Nebius and CoreWeave, as well as hyperscalers such as Microsoft and Google Cloud; despite the fierce competition, Meta's resources and technological prowess position it well in this rapidly expanding market.
- Ongoing Data Center Operations: Meta will continue to operate its vast data centers while renting access to its AI models to developers, which not only creates new revenue streams for the company but also enhances its market position in the AI sector.
- Positive Stock Reaction: Following this announcement, Meta's stock surged by 8.88% to $50.05, significantly boosting market expectations for its future profitability and reflecting investor confidence in its AI strategy.
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