“Hello literally everyone”, Twitter joked about the Facebook (FB) outage on Monday. For other social media, Facebook’s loss turned into a gain. During the outage, many users turned to Twitter to share memes and jokes about the six-hour global blackout.
On Twitter, the hashtags #facebookdown, #instagramdown, and #whatsappdown were trending.
Since then, Facebook is undergoing its worst sell-off of the year following its worst-ever blackout (which took down everything from WhatsApp to Instagram) since 2008. It was so significant that the situation urged a public excuse from Chief Executive Officer Mark Zuckerberg.
The social media giant’s stock suffered additional pressure after a whistleblower and former FB employee charged the company with “prioritising their own astronomical profits before people.”
With so much negative news swirling around it, FB stock has plunged.
This begs the question, how does social media affect markets?
People turn to social media, whether it is for social networking, news or business. Therefore, there is a growing monetisable market there.
Social media benefits from digitalisation and growing online advertising, so they grow increasingly relevant. As a result, the industry outlook is very positive.
At the same time, social media has become hugely important in stock trading. When social media make headlines, the relative stocks are highly affected. For instance, negative news back-to-back has been enough to send the Facebook stock tumbling.
‘Facebook was down; Apologies to your WiFi’
As for the blackout, Facebook will likely reemphasise its importance to its users and advertisers – and in doing so, it might be a happy ever after for the tech giant.
But, looking at the FB stock price movement, the whistleblower story could have a great impact on Facebook’s bottom line; any discussions swirling around social media could increase the likelihood of intervention by regulators.
What’s more, the mounting regulatory examination could also impact the stock negatively.
Social media aside, however, Facebook is also a leader in VR. Considering its growth potential, it’s not surprising that many investors are shrugging off Facebook’s recent challenges.
On top of that, while public sentiment has turned against Facebook in recent years, Wall Street has continued to reward its money-making talent.
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