Facebook CEO Mark Zuckerberg loses $6 billion in hours as stock tumbles
Former White House Chief Information Officer under Bush 43 Theresa Payton discusses Facebook’s longest outage, the platform’s whistleblower Frances Haugen’s testimony and CEO Mark Zuckerberg losing billions after shares sink.
Facebook's stock bounced back after the fallout from Monday's outage and even as a whistleblower blasted the company's practices during congressional testimony.
Shares recouped about half of the 5% loss as of 3:30 pm EDT.
FACEBOOK, INSTAGRAM HAVE LONGEST OUTAGE EVER
The outage that knocked down the social media giant for hours Monday contributed to investor skittish for large-cap tech names shaving off over 2% for the Nasdaq Composite which is also rebounding.
It also dented CEO Mark Zuckerberg's net worth reducing it by about $6 billion. He is the second-largest individual shareholder with 0.12% shares outstanding.
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The company said in a blog post that its engineering teams found that "configuration changes on the backbone routers that coordinate network traffic between our data centers caused issues that interrupted this communication. This disruption to network traffic had a cascading effect on the way our data centers communicate, bringing our services to a halt."
Shares of Facebook are up 22% this year, outperforming the S&P 500's 16% rise.
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