Facebook Suffered From $500,000 in Revenue Loss

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On Thursday June 19, Facebook suffered from $500,000 in revenue loss due to a brief website outage. The outage prevented both computer and mobile users from using the website. Facebook was recorded to be unavailable for less than an hour.

Billions of users are on Facebook each day, with millions of users accessing their Facebook account per day. Although it is common for technical difficulties to occur within the numerous technological devices and applications that come with it, Facebook suffered from a technical difficulty itself and was inaccessible this past Thursday night. Account holders were unable to access Facebook on both their computers and mobile devices and were directed straight to an error message.

On estimate, Facebook successfully earns $1.6 million per hour. With the approximate half-hour outage, the billion dollar company only loss $500,000 in revenue. In one quarter, Facebook makes up to $2.5 billion. In 2010, Facebook suffered from a two-and-a-half hour outage that left the website inaccessible for that amount of time.

Users looked mostly to Twitter to accommodate to their social media needs. Twitter users all over the world used tags like #WhenFacebookWasDown and “FacebookDown” to connect with other users who had to deal with the struggle of not using the ultimate social media resource on the planet. Most made it comical, but there were others who could not handle the lack of Facebook.

The reason why Facebook was down for a half-hour is still unknown, and officials are still working to see where the glitch took place. While Facebook officials and experts are attending to this problem, users all over are just happy that the site is accessible since they felt so “empty” without it. It was fortunate that the site was down for such a limited time so that it did not more of an affect on customer confidence.

Investors in Facebook had a lot to say about the $500,000 revenue loss and found that they had suffered themselves also. As soon as Facebook and the stock market reopened on Friday, the stock was already down 14 percent, and a new low of under $23 a share. They also faced an 8 percent decline just in regular trading on that Thursday.

Mark Zuckerberg, the inventor of Facebook, created the social media website eight years ago in his dorm room. Although the website has brought him much success over the years, many would not believe just how much money Facebook is losing and the significant decline it is facing. Zuckerberg has recently left investors disappointed due to site’s decline. The half-hour outage only gave investor more reason to be unhappy with Facebook.

Facebook suffered revenue loss of $500,000 due to the outage that occurred Thursday. That loss was due to an outage that only occurred for a half hour and only adds on to the numerous financial problems that Facebook is undergoing. This goes to show how significant a loss a company could have by being “closed for business” when the site does not work. Fortunately for the company, they were able to get back up and get their operation underway.

By Tricia Manalansan

Sources:

Fox News
CNN
Sydney Morning Herald
New York Times

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