WhatsApp with Facebook's Instagram Post?
Hey, Hisa fan,
Good morning! It’s just Tuesday and lot’s of stuff already happening. Or maybe it’s a Friday and we’re programmed to think it’s Tuesday? Anyway, here’s what we have.
Facebook Inc., [NASDAQ: FB]
In this time and age of tech, when a company’s website is down, the first thing that comes to mind is a server downtime, but when it’s down for over 2 hours and the Domain Name Service (DNS) records are erased, then a hack comes into mind. And that’s what happened to Facebook yesterday.
The DNS records are tasked with telling computers/users on the Internet where to find Facebook services but with these disabled, the only way was to get physical and since Engineers could not access them remotely. The records for Facebook and subsidiary companies and other socials including WhatsApp and Instagram were also down during this time.
But guess what? Even the engineers couldn’t get in for a while as the problem seemed to have disabled the office access badges for Facebook’s tech team who were trying to enter the building.
Two weeks ago, in our cowries, we wrote about the concerns over Facebook’s long term CTO leaving and the possibilities of a smooth transition. Looks like we didn’t have to wait that long. Nevertheless, we are not pinning yesterday’s blackout on the CTO.
On the share price
Facebook closed Monday with the company down by 4.89% in share price at $326.23. This was the company’s worst decline since last November, Facebook was one of the top decliners in the big-tech stocks on Monday and was the leading drag on the Nasdaq.
The drag on facebook also came through after the identity of a former product manager with the company who has been a whistleblower on the data findings of the company emerged. The former FB employee Frances Haugen, who worked on civic integrity issues at the company said that “Facebook knows its platforms are used to spread hate, violence and misinformation, and that the company has tried to hide that evidence.”
Haugen is set to testify today, Tuesday, before the Senate Subcommittee on Consumer Protection, Product Safety, and Data Security.
Why is this important?
The main driver for the downward trend on Facebook’s share price began on September 13th when Jeff Horwitz, a journalist for the wall street journal debut a famous 6 episode series dubbed “The Facebook Files”.
This series brought Facebook to the Senat’s committee for the second time this year. This time, it was a much more concern as it stated Facebook knowingly put aside user protection over Ads and profit.
Remember: It’s the Wall Street Journal report that caused the massive fall out of Theranos, so in as much as Facebook may not be in the same industry as Theranos, most analysts have implied that it sure treats its data the way Theranos did.
This latest info has all raised concerns over social media companies and just to what level they affect users.
So, are you buying Facebook today? Did you buy the Dip?
Let us know on the Hisa App.
Disclaimer: This report does not constitute any investment recommendations. Investors and the general public are advised to do their own research before making any investment decision.