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Monday, 4 June 2012

Whats happening at Facebook?

Have you had problems logging in to FB? Are the investors happy with the timing of all this? What's going on within Facebook? Here's some possible reasons and speculations being made by industry experts about the less talked about factors that may have caused the issues at the social networking giant.

Facebook has had a lot of things happening over the last week or so. The hype about its IPO was overwhelming even for the big media companies to digest and speculations drove public attention and made them zombies. I make that comparison because they were blinded and were not looking at actuality of events. It was a very important occasion though for Facebook but it did not turn out as well as they had predicted it to. The IPO reached much lesser value from its initial prediction by not just Facebook itself but even big time investors.

Mark Zuckerberg stocks Facebook's IPO :)

What made matters worse was Facebook's so called outage. The entire website was inaccessible for hours on certain days. Mark Zuckerberg had mentioned a statement in his IPO which said that, 'If the website goes down then users will go away and may never return'. No one looked at this back then but now that it did happen, investors were losing patience. Hackers like ' The Anonymous' were predicted to have hacked the website and Facebook stayed away from explanations and this made matters even worse. Big investors had already invested aggressively, all thanks to the media speculation but thanks to all the problems at the wrong time, the stocks plunged. IPO investors were now scared and they might even start selling soon. When they do so, stocks will plunge deeper.

But the point is why did this happen. Is all this random occurrences of events that just happened to happen or was there a strategic business plan behind what happened? Well, there are three major possibilities for these turn out of events according to us:

Its Mark's plan to make buy-backs possible: Before you say what are you talking about? Think about this, it was him who was against making Facebook public and held it from happening for longer than he could stop it. Finally when he was under immense pressure from all sources is when he cracked and made the public offering. So, all this could be his plan to sell the stocks at a certain price then make the stocks fall and offer buy-backs when it sounded that they were unsuccessful.

The website was hacked: It is a very high possibility that the website was hacked. The worst part of this is that Facebook would never let public know that it did happen because they would lose public confidence especially when its privacy rules are under so much of confusion. By the way, they are having users vote on their change in privacy today. Something does sound fishy because again why now? but who knows whats gonna happen next, even Facebook can not be certain or can they be?

They did have a problem with their cache: The last possibility could have been that Facebook did actually have a problem with how they were handling their cache and changed the software in use. It apparently made matters worse and they have now fixed it. Well, its quite possible but the timing of this makes no one feel comfortable especially if you have invested millions just a week ago and the stock prices are falling. Investors are very nervous.

Well, Facebook has really had a lot of drama right from the word go. So, we as the people are certainly not surprised by how its public offering turned out. Lots of drama as usual. Hope things change for the good for everybody.

Well, thats what we think. But do let us know what you feel and how things may turn out for Facebook in the next month or so. Do you think this is truly Mark's plan? He isn't new to doing things like this or is it just another hurdle for Facebook that they will fight through?

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