Meta Shares Dip Amidst Global Facebook and Instagram Outages

On the morning of March 5, 2024, Meta Platforms, Inc., known for its social media giants Facebook and Instagram, experienced a significant service outage that resulted in a temporary drop in its stock price. Reports confirmed that both the Facebook and Instagram platforms were inaccessible from around 10:20 am ET, affecting users' ability to log in and use the services on a global scale.

Impact on Meta's Stock Value

The disruption had immediate financial repercussions, as Meta's share price quickly fell by approximately 1.55 percent in the wake of the outage. The volatility of the stock continued throughout the morning as users and investors watched the situation unfold.

Scope of the Outage

According to the online outages tracking platform, DownDetector, the impact of the outage was massive, with hundreds of thousands of American users reporting issues with Facebook, while Instagram and Messenger witnessed tens of thousands and thousands of reports respectively. The outage was not confined to the United States, having reached users in the UK, parts of Europe, China, Australia, and Mexico.

Users experienced a range of issues, from being kicked out of Facebook to being unable to log back into their accounts, even with the correct credentials. Instagram users also encountered error messages when attempting to view their News Feed.

Broader Market Trends

It wasn't just Meta feeling the heat in the stock market. Overall, US stocks fell by 1.7 percent, led by weak performances from several technology firms. Apple Inc. saw a nearly 3 percent drop after reports showed a significant decline in iPhone sales in China. Tesla Motors also faced a decrease of 4.92 percent in its shares as it, too, experienced a slump in the Chinese market.

These shifts led to Amazon founder Jeff Bezos overtaking Elon Musk as the world's richest person, as Tesla's market valuation took a dip.

Other tech giants, such as Netflix and Microsoft, also experienced losses of more than 2 percent, indicating a broader market trend that is affecting some of the most prominent players in the industry.

Tech Stocks and Their Market Influence

The S&P 500 has benefited greatly from the performance of the 'Magnificent Seven,' a term referring to the top tech stocks of Microsoft, Alphabet, Amazon, Nvidia, Apple, Meta, and Tesla. In the past year, these companies were responsible for two-thirds of the S&P 500's 24 percent annual gain.

Today's setback for Meta, while minor in the broader context, reflects the susceptibility of tech stocks to immediate market changes, including service disruptions.

Meta, Outage, Stocks