Facebook Inc. services experienced unprecedented disruptions for more than six hours on Monday, adding to the already miserable day on the social network.
Shares have experienced their worst session in almost a year, falling 9.9% to $ 626.2 to their worst one-day percentage decline since falling 5% in November, 2020.
And a 2.1% loss in the tech-heavy Nasdaq Composite Index. COMP,
The fall comes after a national broadcast of Whistleblower’s allegations that social media networks have made a profit before security. Late Sunday, ViacomCBS Inc. Of VIAC,
The news program “60 Minutes” aired an interview with former Facebook data scientist Frances Hausen, who complained that the social media giant was deceiving investors about how it was behaving with hate speech and misinformation on its platform.
For more: Facebook whistleblower says its goal is not to harm the company
Hausen provided thousands of pages of documents to the Wall Street Journal, which formed the basis of the publication The Facebook File Series. Hausen is scheduled to testify before Congress on Tuesday morning and is also seeking protection for Whistleblower on allegations filed with the Securities and Exchange Commission.
Added to this was a massive shutdown of Facebook services, including Instagram and WhatsApp, which started just before noon. Even the status dashboard is not being used on Monday to inform Facebook developers of its availability. DownDetector, which tracks Internet disruptions, said Monday’s disruption was unprecedented.
Last afternoon, things got so bad that the problem could not be fixed remotely, requiring an engineer from the company’s main data center to try to reboot the server manually. Facebook’s internal systems were also shut down, leaving email as the main means of communication, the report said.
A Facebook spokesperson took to Twitter Inc.’s TWTR,
Platform to fix problems.
“We’re aware that some people are having trouble accessing our apps and products,” said spokesman Andy Stone. “We are working to get things back to normal as soon as possible and we apologize for any inconvenience.”
In terms of numbers: Facebook’s disruptive stock costs billions, could cost the company millions
Although Facebook did not elaborate on the cause of Monday’s disruption, experts said on Twitter that it appeared to be a problem with the company’s domain-name system or DNS.
Later Monday, Facebook’s chief technology officer admitted on Twitter that the company had “networking problems,” when the New York Times reported that Facebook had sent a team to a California data center to try to reboot the server manually as employees shut down the system. And could not enter the company building because their system was locked down.
Finally, by the eve of the evening, the landing pages of Facebook and Instagram were loading, and WhatsApp less than half an hour later. Facebook has confirmed on Twitter that the sites are accessible again.
Amid the corruption, Facebook filed a motion to dismiss the Federal Trade Commission’s amended no-confidence lawsuit against the company, saying the agency’s allegations still lack evidence that Facebook violated the no-confidence law.
“This court has given the agency a second chance to make a valid claim,” the company said at the time of filing in U.S. District Court for the District of Columbia. “But the same shortcoming that was fatal to the FTC’s initial allegation: the revised allegation still cannot establish any veracity of Facebook, and has exclusive powers at all relevant times.”
For more information: FTC has a chance to act in its ‘fiasco’ no-confidence case against Facebook, legal experts claim
Facebook’s speed was expected with CEO Mark Zuckerberg’s no-confidence motion promising to fight hard against any government attempt to disrupt the company.
Under new chair Leena Khan, the FTC reconsidered its case in August, offering further analysis of market share and its exclusive argument over how Facebook uses the billion-dollar merger with Instagram and WhatsApp in a “buy or bury” contest. The agency has claimed in its lawsuit that Facebook should be dismantled.
The judge has until mid-November to respond to Facebook’s proposal to dismiss the case.
Through one public insult and accusation after another, Facebook stock has largely escaped. The stock has risen 19.4% so far in 2021, surpassing the 14.5% growth of the S&P 500 index at that time, and the S&P 500 has more than doubled in the last three years, rising nearly 50%.
From Baron: Why Facebook stocks can be bought despite controversy
Institutional analysts continue to recommend stocks as well. According to Factset, 38 out of 51 analysts across Facebook – 75% – rated it as “buy” or equivalent, while 12 “hold” it and only one stock called it “sell”. The average price target until Monday morning was $ 421.55, which is about 30% higher than the current rate.
Other social networks and Big Tech stocks also suffered losses on Monday. Snap, Inc.
And Pinterest Inc. PINS,
Shares fell a larger percentage than Facebook, while Apple Inc.’s APL,
Microsoft Corporation MSFT,
Alphabet Inc. GOOGL,
And Amazon.com Inc. AMZN,
All shares are down 2% or more per day.