On Monday, Facebook and its sister companies WhatsApp & Instagram suffered a major outage. Due to these few hours, investors’ confidence is shattered as the shares went down to 4.8%. Not only this, Zuckerberg’s wealth has also fallen down by $US7 billion ($9.6 billion) in a few hours of facebook outage, knocking him down from the list of the world’s richest people.
The wealth of Facebook’s CEO declined by $5.9 billion and stood to $117 billion in total. The Facebook stock came under pressure due to two reasons. One is an unusually long outage and secondly, since it wanted to give its “By Facebook’ tag to sister companies WhatsApp and Instagram which cost it tens of millions of dollars in revenue.
Mark Zuckerberg loses $9.6 billion amid Facebook outage
This is not the first time Facebook has suffered from such a kind of blackout. In 2019 the network shut down for 14 hours. In 2008, it also suffered from such outages. However, there was a difference in the current blackout and it was worse since the Facebook employees were also not able to access emails and the internal messaging system named workplace. This issue made the communication between the employees impossible.
Other than this Facebook was also in the highlight as the former product manager Frances Haugen, who leaked internal data to the Wall Street Journal. In an interview, she criticized Facebook for putting “profits over people” and failing to maintain safeguards against misinformation after the 2020 presidential election. Maybe Facebook stocks will go down due to this interview as well.
During the last few years, surprisingly Facebook’s shares have remained durable despite last year’s ad boycott and the Jan 6. riots. Till Monday shared record remained high, closing Monday at $326, a more than 150% increase in five years.
Want to know what caused Facebook’s 6 hours outage? Read:‘Faulty Configuration Change’ Caused the Six Hours Outage: Facebook