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The Zacks Analyst Blog Highlights: Apple, Alphabet, Facebook and Twitter

For Immediate Release

Chicago, IL - March 02, 2016 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Apple Inc. ( AAPL ), Alphabet ( GOOGL ), Facebook ( FB ) and Twitter ( TWTR ).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .

Here are highlights from Tuesday's Analyst Blog:

Apple Wins iPhone Privacy Ruling vs. FBI: What's Next?

Yesterday, Apple Inc. ( AAPL ) tasted sweet victory in a privacy battle against the FBI.

Case and Verdict

With regard to the New York drug trafficking case, federal judge James Orenstein's verdict was in Apple's favor. The judge said, "after reviewing the facts in the record and the parties' arguments, I conclude that none of those factors justifies imposing on Apple the obligation to assist the government's investigation against its will."

The government had earlier ordered Apple to unlock an iPhone for a crime investigation leveraging the All Writs Act which authorizes the court to "issue all writs necessary or appropriate in aid of their respective jurisdictions and agreeable to the usages and principles of law."

However, Apple stood by its security and encryption standards and opposed the order.

How Will the Verdict Help Apple?

This legal victory is important for Apple not only because it wipes off one legal blemish, but also because it may help the tech giant to secure the court's favor in a separate but similar case. Since Dec 2015, Apple has been contesting another court ruling (in California) that had ordered it to assist the FBI in unlocking an iPhone used by one of the attackers in the San Bernardino shooting that claimed 14 lives.

The FBI had wanted Apple's assistance in creating a backdoor to unlock the iPhone of the alleged criminal. Apple devices are so designed that the operating system erases all data after 10 incorrect password attempts. Since neither Apple, nor FBI has the passcode to the device, the investigative agency required the iPhone maker to make another operating system that would have the backdoor to bypass the encryption and security.

Apple has been maintaining that it would have to make compromises with the security of other devices, if it fulfills the FBI's requirement. Furthermore, it would have meant additional costs and time for the company apart from an obligation to meet more such requests in the future. In fact, Apple is already involved in nine similar cases that require it to assist the government.

Orenstein's ruling specified, "In considering the burden the requested relief would impose on Apple, it is entirely appropriate to take into account the extent to which the compromise of privacy and data security that Apple promises its customers affects not only its financial bottom line, but also its decisions about the kind of corporation it aspires to be."

This legal victory should strengthen Apple's position in the San Bernardino shooting case for which the company is facing FBI at a Congressional hearing today.

Additionally, Apple is also being supported by most of the leading tech players including Alphabet ( GOOGL ), Facebook ( FB ), Twitter ( TWTR ), Amazon and Microsoft in the San Bernardino shooting case. Even other institutions like the Electronic Frontier Foundation and the American Civil Liberties Union backed Apple, emphasizing the need to ensure security and privacy of devices.

Zacks Rank

Apple carries a Zacks Rank #3 (Hold).

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- See more at: http://www.zacks.com/stock/news/209136/apple-wins-iphone-privacy-ruling-whats-next-in-fbi-battle#sthash.KchFkiAR.dpuf

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APPLE INC (AAPL): Free Stock Analysis Report

ALPHABET INC-A (GOOGL): Free Stock Analysis Report

FACEBOOK INC-A (FB): Free Stock Analysis Report

TWITTER INC (TWTR): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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