Stanford Report, Key Findings on Facebook Deactivation: We explain what the Stanford report has found, plus how this builds on other evidence for the negative mental impact of being a Facebook user. However, a recent groundbreaking Stanford study has measured the changes in nearly 3,000 US Facebook users over a four-week period. However, most of the academic work out there has been based on small scale studies, while a lot of perceived evidence from outside academia has been anecdotal. Various studies have pointed towards how it can lead to increases in depression, eating disorders, low self-esteem and anxiety. It’s long been speculated that social media, in general, has had a negative effect on our mental wellbeing. Users just can’t seem to let go of Facebook, even though, according to a huge recent study by Stanford University, it’s also having a detrimental impact on our health. However, at the end of the day, Ford can now completely focus on its own blossoming EV lineup, and dish out a little extra cash to shareholders after monetizing its Rivian shares.Despite its continual bad press for privacy concerns and alleged ability to influence real-world politics, Facebook remains the most popular social network worldwide. To be fair, there are other issues Ford needs to fix that came to light during the fourth quarter. While the partnership between Rivian and Ford fizzled out before bearing any fruit, the headlines emphasizing Ford's $7.4 billion impairment on its investment don't do the full story justice. Thanks to the automaker's strong cash flow, and also the monetization of Ford's stake in Rivian, the company announced a first-quarter regular dividend of $0.15 per share, and also a supplemental dividend of $0.65 per share. Ford invested $1.2 billion in Rivian, and the sale of 91 million shares netted the company $3 billion. However, looking at it from a different angle helps put the scenario in perspective. Ford then had a special impairment of $7.4 billion during the fourth quarter that reflected the change in value of Rivian shares. To make matters worse, Ford was also starting to sell off shares of Rivian.įord originally owned 101.9 million Rivian shares, roughly 12% of the total share count, and sold 91 million of those shares during 2022. Then came 2022, which was a bit of a rough year for not only the automotive industry, but Rivian in particular - it dished out price increases and was hit with consumer backlash and a nose diving stock price. It turned Ford's original $500 million investment into a value of $10.6 billion, and then Ford reported a gain on that investment to the tune of $9.1 billion in 2021. Right before the two automakers announced they would cancel plans to develop a vehicle together, Rivian held its initial public offering (IPO), which was a huge success and the biggest public offering in nearly a decade. This is where things get a little interesting, at least on paper. Both companies decided it was beneficial for them to focus on their own priorities, although Ford kept its investment in Rivian. Those three electric vehicles would push Ford up the ranks to become the number-two seller of EVs in the U.S. However, it wasn't because the partnership soured, but rather because Ford quickly developed three big wins with the Mustang Mach-E crossover, E-Transit van, and its F-150 Lightning pickup. That partnership was scrapped before a vehicle was produced. The initial plan was for the automakers to build an all-new electric vehicle using Rivian's platform. Ford would later increase that investment to a total of $1.2 billion. Rewind the clock back to 2019, when Ford and Rivian formed a strategic partnership through a $500 million minority investment. Let's explain why the partnership between Rivian and Ford broke down, why the $7.4 billion impairment isn't as bad as you might think, and how it helped spur a supplemental dividend of $0.65 per share. In fact, investors also received a nice gift thanks to the monetization of Ford's Rivian shares. There's no doubt that Ford Motor Company's ( F -0.15%) fourth quarter was disappointing, especially considering cross-town rival General Motors (NYSE: GM) raised the bar with a better-than-expected result.Īnd if investors merely scratched the surface of the report, you might think that Ford's special impairment of $7.4 billion on its Rivian ( RIVN -2.22%) investment tanked the results.
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