In this video, I will be talking about the Facebook (META 0.49%) outage and the whistleblower situation. Facebook and all of its services were down on Monday, October 4, one day after a whistleblower came out and talked about the company's "malpractice." Regardless of all the noise, I still think Facebook is a long-term buy. You can find the full video below.
Monday, Oct. 4 will be remembered as the day most of our communication services went down. But what happened exactly? Facebook's DNS (domain name system) and other services were down. It appeared that its BGP (border gateway protocol) routes had been withdrawn from the internet. In simple words, all "road signs" that indicate where Facebook is located on the internet disappeared. The issue was so bad that it couldn't be fixed remotely. Engineers had to be called to the data centers to try to fix it.
The timing of this event raised some questions because it happened one day after a whistleblower went on record to talk about Facebook's and Mark Zuckerberg's "unethical" behavior. Most of what that person said was already known to the public. More on that in the video.
In Q2, Facebook reported revenue growth of 56% and earnings-per-share growth of 101% year over year. It also reported that there are 1.9 billion daily active users and 2.9 billion monthly active users. It's hard to find another company of Facebook's size that still manages to grow the way it does, and that's without any significant impact from augmented or virtual reality.
For the full insights do watch the video below.
*Stock prices used were the closing prices of Oct. 4, 2021. The video was published on Oct. 5, 2021.