Facebook Faces Largest Outage Ever and Apple Shares Are Trading Lower
Facebook fell 4.9%, their biggest daily drop since last November, amid a broader selloff in technology stocks on Monday.
Facebook announced in a statement late Monday that its platforms are “back up and running” after the company believes a “faulty configuration” change was the cause of a widespread outage that lasted roughly six hours.
“This disruption to network traffic had a cascading effect on the way our data centers communicate, bringing our services to a halt.”
CEO Mark Zuckerberg posted an apology Monday evening, saying the platforms were coming back online. “Sorry for the disruption today — I know how much you rely on our services to stay connected with the people you care about.”
The company has gained a lot of momentum in 2021, reaching a $1trillion market cap back in July. However, Facebook has received heavy criticism in the wake of its recent troubles.
“Facebook has demonstrated they cannot act independently… Facebook, over and over again, has shown it chooses profit over safety,” Haugen told 60 Minutes.
Shares of Facebook have climbed 23% this year.
Due to the weakness in Facebook and the broader market weakness, Apple fell as much as 3.1% on Monday amid another wave of selling.
Shares of companies in the broader technology space are trading lower amid a rise in bond yields, which has weighed on growth stock valuations.
Apple joins Facebook Inc. and Amazon.com among technology stocks that have fallen more than 10% from peaks.
According to the Insider Monkey Team, “If a company like Facebook is worth less, a company like Apple Inc. is also worth less to some investors based on relative valuation.”
Looking ahead, Apple provided insight about the company which included a forecast for slowing services growth and foreign exchange headwinds. Apple also expects supply constraints to impact iPhone and iPad sales in the period.
The next possible catalysts for Apple stock could be a second product launch event this fall or the company’s September-quarter results.
Shares of Apple have risen 19% this year.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.