Facebook Failure Odds: Will it Happens Soon?

One of the biggest disruptions in its history occurred on the global Internet. Due to the incident, the capitalization of Facebook, Amazon, Apple, Netflix, and Alphabet decreased by $ 243 million. Meanwhile, Mark Zuckerberg lost $ 6.4 billion in a day. Let’s look at the Facebook failure odds!

First, Facebook and its affiliated WhatsApp and Instagram were inaccessible to users. Later, problems arose with other instant messengers, social networks, as well as online stores, including Twitter, Google, and Amazon. Market participants associate the current situation with a multitude of internal problems of messengers and social networks that have accumulated as they grow. Data leaks of billions of users, problems with integrating large assets, and other complexities increase the number of vulnerabilities faced by large digital companies. 

Why did Facebook disappear?

The users began to report problems with access to Facebook, WhatsApp, and Instagram on the 4th of October. According to data from the American resource Downdetector, it tracked major outages on the Internet. It is clarified that the subscribers of the main European cellular operators Vodafone, T-Mobile, and O2 have faced difficulties. 52% of users complained about the work of mobile applications, 26% – about the activity of websites. Two hours later, TikTok was no longer available. Problems with Twitter and VKontakte also happened. At the same time, the press service of the last company noted that there were no failures in the work of the social network. They also indicated a surge in the activity of users of the services. So can we already look for the Facebook failure odds in online sportsbooks in the USA?

Later it became known that Netflix, Zoom, Viber, Tinder, YouTube also crashed. Most of the problems were reported by users from the US and UK, as well as from Canada, the Netherlands, Germany, Italy, and France. But what was the problem? To put it simply, the company’s systems have stopped “communicating” with the rest of the broad Internet. It’s like someone ripped cables from all data centers at the same time, and disconnected the systems from the Internet, explains Cloudflare, which specializes in network infrastructure. Besides, Mark Zuckerberg apologized for the global failure of Facebook services. He lost $ 6 billion due to the crash. Meanwhile, Facebook’s explanation was more technical. “Change in configuration on the main routers that coordinate the exchange of traffic between data centers caused the interruption in this exchange,” the company said. “This, in turn, led to a cascade effect that caused the suspension of services.”

Facebook failure odds: Outcomes 

Nowadays, the Internet is divided into hundreds of thousands of subnets. Large companies like Facebook have their own larger networks – these are autonomous systems. When you go to Facebook (or Instagram or WhatsApp), your computer connects to its network using the so-called Border Gateway Protocol (BGP), which can be called a kind of Internet postal service. To guide the user to the page he wants to get to, this protocol outlines all possible routes of information and chooses the optimal one. On the 4th of October, Facebook’s servers stopped providing information required for the protocol to work. Indeed, This means that users have lost contact with Facebook systems, and hence Instagram and WhatsApp.

But why was this allowed to happen? At about 4:45 pm London time, reports began to appear that Facebook’s social networks had stopped working. At first, the Internet reacted with ordinary jokes, and it was not the fallen Twitter that began to mock its competitors. However, it soon became clear that the situation was serious. Indeed, reports of chaos in the Facebook headquarters began to arrive from California. New York Times reporter Shira Frenkel told the BBC that it took so long to solve the problem because people trying to figure out what the problem was were physically unable to get into the building.

The load on other social networks and services increased. Thus, disconnected users discussed what had happened and looked for an alternative to the fallen social networks. We still don’t know exactly why Facebook’s communications collapsed – whether it was a bug or someone else’s mistake. However, conspiracy theories are already blooming. One is sabotaged by someone inside the company. The Bet365 Sportsbook offers various bets on such events. Check our article on How TikTok Can Change Gaming in 2021!

Financial Complications

The shares of other digital companies in the United States also turned out to be in the red: Apple, Netflix, Nvidia. The capitalization of Facebook, Amazon, Apple, Netflix, and Alphabet by 23:00 e in total decreased by $ 243 million. Besides, the NASDAQ stock index on these messages fell by more than 2.3%. The internal technical problems of Facebook not only collapsed the company’s shares. However, it also caused an increased load on other social networks and instant messengers. Meanwhile, The New York Times reported at 10:30 pm that Facebook employees cannot enter the company building.

“Just over the phone, an FB employee described the inability for employees to enter the building this morning to begin assessing the extent of the failure because their badges do not open the door locks,” correspondent Shira Frenkel wrote on Twitter. The same publication concerning the employees of Facebook Inc., who wished to preserve anonymity reported that the failure of social networks Facebook and Instagram, as well as the WhatsApp messenger is unlikely to be the result of a cyberattack. Indeed, they are too different from each other to simultaneously become victims of the same hack.

Only in 12% of cases, the distribution of databases with personal information was allowed by banks. So far, everything looks as if someone changed the DNS (digital addresses on the Internet) of users of Facebook and other social networks. “This may be because recently the data of 1.5 billion users of the social network have leaked to the darknet,” the experts suggest. – All of this points to a targeted attack on Facebook. The Independent’s Brian Krebs also reported that DNS records that tell systems how to find Facebook.com or Instagram.com have disappeared.

Facebook Failure Odds: More to The Story

At the moment, companies do not have data that the difficulties with access to many services are associated with cyber attacks. Most likely, this is a consequence of a malfunction in the work of global providers. Such failures are not uncommon. For example, on November 25, 2020, many services didn’t work due to problems in the operation of Amazon Web Services. Experts associate the crisis around Facebook with the accusations leveled against the company by its former employee Frances Haugen. According to The Wall Street Journal, the company, in its pursuit of profit, turned a blind eye to the “toxic” consequences of using the social network by teenagers. In addition, in her messages to the American media and various departments, Haugen pointed out that the social network is where some drug dealers and other criminals communicate.

The situation around Facebook and its subsidiaries may well be related to public dissatisfaction with their actions, TelecomDaily CEO Denis Kuskov does not rule out. But the blow to the investment attractiveness of Facebook is obvious. Indeed, failure shows investors that the company has not been able to digest and adapt the businesses that were bought at one time for a lot of money. How this will affect Facebook shares in the future, the expert found it difficult to predict. But online sportsbooks in the USA already make their predictions.

Conclusion

For Facebook itself, the biggest impact of disruption would be a drop in its stock and profits. Indeed, there were no ads on the platforms for more than six hours. Some analysts believe the crash cost Facebook more than $ 6 billion. Unfortunately, its shares fell more than 5%. Today, it can also bring problems to the company. An insider responsible for a major leak of internal company documents will appear before the US Senate. Besides, Facebook also has problems from a regulatory perspective. From the leak, it is clear that for this company, profit is more important than employees.

In addition, regulators in different countries of the world have already paid attention to Facebook. They believe that the company may be too big to effectively counter challenges such as misinformation, incitement to hatred, and attempts to steal users’ personal information. Of course, there have been failures in the work of the social network before. However, as a rule, they fix them after about an hour. 

Failures are not only due to the fault of large social media firms but also often due to the miscalculations of network infrastructure companies such as Cloudflare and Fastly. This shows that problems with key infrastructure in one part of the planet can affect users around the world. And this brings us back to the question – should the internet be owned by a few small companies? Facebook failure odds have already appeared on the Bet365 Sportsbook. Check it and make your winning bet!

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