Facebook shares rebounded in the premarket. However, on the eve of the paper fell 5%
Facebook’s capitalization lost 5% amid a global disruption and accusations by a former employee who agreed to speak about the company’s practices before the US Congress. However, after the collapse, the quotes turned to growth.
At preliminary trading on October 5, Facebook shares won back part of Monday’s losses when the social network quotes collapsed by 4.9%. At the American premarket on Tuesday, the company’s securities are growing by 1.6% – $ 331.6 per share.
The day before, they closed the session at $ 326.23. Then, Facebook shares fell sharply against the backdrop of a global disruption in the work of both the social network itself and its other services – Instagram, Messenger, and WhatsApp.
The crash lasted for six hours. Experts from the Cloudflare provider published a report in which they cited incorrectly updated routers as the cause of the failure in Facebook services. An update loaded with an error made the Facebook DNS server unavailable, experts said. Facebook founder Mark Zuckerberg apologized to users for disruptions in the work of the social network and its services.
According to Forbes estimates, Zuckerberg’s fortune was reduced by $ 6.3 billion due to the stock collapse. “Betrayal of Democracy” was not only a technical failure that could negatively affect the company’s value. On October 3, Bloomberg reported that former Facebook employee Frances Haugen sent the network’s internal documents to the media and US regulators. As a result, her lawyers filed at least eight complaints with the US Securities and Exchange Commission (SEC).
Haugen to tell the US Congress on Tuesday that the company is hiding the adverse effects of its platforms from the public and shareholders.
Haugen previously shared with The Wall Street Journal internal Facebook documents, based on which the newspaper published a series of articles.
In particular, the disclosed documents contain information that Facebook executives were aware of the negative impact of platforms on the psyche of adolescents but did not take any action.
In addition, Haugen said that Facebook understood the risk of disinformation during the 2020 elections and made changes to the operation of its security systems to reduce this risk. But immediately after the elections, the social network turned off or changed the corresponding settings and disbanded the employees who worked on these tasks. “To me, it looks like a betrayal of democracy,” added Haugen.
