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Friday, September 28, 2018

Cramer: People in Silicon Valley tell me Facebook is a hated company who broke their trust

A number of people in Silicon Valley hate Facebook and believe the social network's problems will result in difficulties for everyone else in the tech community, CNBC's Jim Cramer said Friday.

"This company is a rogue in the eyes of a lot of other tech companies," Cramer said on "Squawk on the Street" on Friday from San Fransciso during a swing this week through Silicon Valley. "They say, 'How do they even have any trust at all'?"

Cramer said people in recent days have told him off the record that Facebook violated the tech communities trust.

"I've been out here, and everybody tells me off the record, they violated our trust," Cramer said Thursday night on "Mad Money." "Violation of trust is what brings in the government."

Facebook did not immediately respond to CNBC's request for comment.

Cramer, whose chairtable trust owns shares of Facebook, has been critical of the platform ever since reports on March 17 that Cambridge Analytica had harvested the data from more than 50 million users of the social network without their permission.

At the time, Cramer said Facebook CEO Mark Zuckerberg and COO Sheryl Sandberg were notably silent, and said Facebook should hire a special counsel to show it has nothing to hide.

Breaches of data privacy have compromised personal information of millions of U.S. internet and social media users, prompting lawmakers to doubt that tech firms successfully regulate themselves.

Sandberg, along with Twitter CEO Jack Dorsey, spoke with lawmakers earlier this month on social media's role in protecting elections from misinformation and disinformation.

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