Facebook down for six hours resulting in $7 billion in losses

Facebook Inc. and its family of apps, including Instagram and WhatsApp, were inaccessible for hours on Monday, taking out a vital communications platform used by billions and showcasing just how dependent the world has become on a company that is under intense scrutiny. Facebook’s entire network of services suddenly went offline, the worst outage for Facebook since a 2019 incident took its site offline for more than 24 hours, as the downtime hit hardest on the small businesses and creators who rely on these services for their income.

Facebook down for six hours resulting in $7 billion in losses

Facebook Inc. issued an explanation for the outage on Monday evening, saying that it was due to a configuration issue. The company says it doesn’t believe any user data was impacted. Facebook Inc blamed a faulty configuration change for a nearly six-hour outage on Monday that prevented the company’s 3.5 billion users from accessing its social media and messaging services such as WhatsApp, Instagram and Messenger.

The outage was the second blow to the social media giant in as many days after a whistleblower on Sunday accused the company of repeatedly prioritizing profit over clamping down on hate speech and misinformation.

As the world flocked to competing apps, shares of Facebook fell 4.9 per cent, their biggest daily drop since last November, amid a broader selloff in technology stocks on Monday. Shares rose about half a percent in after-hours trade following resumption of service.

Soon after the outage started, Facebook acknowledged users were having trouble accessing its apps but did not provide any specifics about the nature of the problem or say how many users were affected.

Mark Zuckerberg's personal wealth has fallen by almost $7 billion in a few hours, knocking him down a notch on the list of the world's richest people, after a whistleblower came forward and outages took Facebook Inc.'s flagship products offline. A selloff sent the social-media giant's stock plummeting around 5% on Monday, adding to a drop of about 15% since mid-September.

The stock slide on Monday sent Zuckerberg's worth down to $120.9 billion, dropping him below Bill Gates to No. 5 on the Bloomberg Billionaires Index. He's lost about $19 billion of wealth since Sept. 13, when he was worth nearly $140 billion, according to the index.