Facebook Fiasco Impacts Exceedingly On Shares
Facebook, WhatsApp, and Instagram experienced massive blows as the application went down on Monday (10/4). The decline of the three Facebook Group social networking programs caused Facebook shares listed on the Nasdaq composite index to drop. After "down" reports from Downdetector, Facebook-WhatsApp-Instagram underwent a flood of reports from its numerous users. It's still unclear why Facebook, WhatsApp, and Instagram are all shutting down simultaneously. However, this was dubbed the worst outage for a Facebook group since the 2019 event, which knocked the platform offline for more than 24 hours. Cybersecurity experts say the problem lies in the Domain Name System (DNS). Cisco's ThousandEyes internet analytics division proclaimed testing indicated the outage was due to a DNS failure. "I'm not sure if I've ever seen this sort of outage from a big internet business before," said Doug Madory, Kentik's director of network analysis, reported by CNN International, Tuesday (10/5). Aside from that, another catalyst affected this drop. Nationwide broadcast of a whistleblower's accusations that the social media network Facebook prioritized money before safety. Late Sunday, ViacomCBS Inc.'s news show "60 Minutes" broadcast an interview with former Facebook data scientist Frances Haugen, who claims the social-media company has misled investors about how it handles hate speech and disinformation on all of its platforms. Many Investors grew weary because of this sudden news which reflects on the situation of Facebook shares.
The higher-up of Facebook, Mark Zuckerberg, is said to have cost US$7 billion or equivalent to Rp99.8 trillion after WhatsApp, Facebook, and Instagram went down since Monday night (10/4). Admeasurement firm Standard Media Index estimates Facebook lost about US$545 thousand per hour during the disruption. As a result of this disruption, Facebook shares immediately fell around 5% at US$323.34. However, Stock markets in the United States started trading Tuesday (10/5) local time with an increase. Facebook shares have finally recovered after dropping nearly 5% on Monday triggered by global service disruptions. The Nasdaq's technology stock index rose after the index fell more than 2% at the close on Monday (10/4) local time. The stock market has faced many concerns about the economy and the policy landscape heading into the year's final quarter.
As of now, Facebook shares somewhat recovered on Tuesday (10/5), up about 2.5% after the social media company fully restored its services, regrouped slightly to US$332.75. This recovery is still unstable as a Facebook whistleblower, Frances Haugen appeared at a hearing investigating the harmful impact the tech giant's platforms have on young people. She urged members of Congress to change the regulatory framework under which the social networking giant operates, or it will continue to buy corporate profits over the safety of its users. She demanded that Facebook make changes to its operations. Facebook needs to be willing to accept some trade-offs on profit, she reiterated. "Yesterday, Facebook had a platform outage. But for years, it has had a principles outage. Its only principle is profit," said Senator Marky on Tuesday (10/5). Haugen’s testimony turned investors wary of other tech platforms, Twitter and Snapchat for instance. All in all, Facebook outage and social responsibility pariah should be taken into serious consideration as this will change the social giants' climate and impact many tech IPOs, deals that need to be pulled to lessen the supply of shares.
Sources :
Bloomberg
CNBC International
CNN International