Is YHOO Stock Done For?
Yahoo! Inc. (NASDAQ:YHOO) and YHOO stock are in hot water on Thursday as details of a massive hack affecting potentially over one billion users were released by the company.
YHOO stock is down 4.6% as of early afternoon trading following confirmation of the enormous data breach that occurred in 2013. Though details on what exactly was mined during the attack are still inconclusive, the company wrote in a statement that names, e-mail addresses, telephone numbers, dates of birth, passwords, security questions, and security answers were accessed. Basically, it was everything a hacker would need to breach other systems using a similar process of authentication. (Source: “Important Security Information for Yahoo Users,” Business Wire, December 14, 2016.)
Yahoo! was the target of a believed state-sponsored hack in 2014 which had set the previous record for most users information breached at 500 million. This is one area where YHOO stock definitely does not want to show year-over-year growth. (Source: “Worried that your Yahoo account was hacked? You should be,” The Globe and Mail, December 15, 2016.)
Probably most important to YHOO stock is how the hacking revelations will affect the proposed sale of Yahoo!’s digital operations to Verizon Communications Inc. (NYSE:VZ). The deal is currently valued at $4.83 billion, but Verizon is reportedly looking to renegotiate or even back out of the agreement following Thursday’s hacking reveal. (Source: “Verizon Explores Lower Price or Even Exit From Yahoo Deal,” Bloomberg, December 15, 2016.)
“As we’ve said all along, we will evaluate the situation as Yahoo continues its investigation,” Verizon said on Wednesday in an e-mailed statement to Bloomberg. “We will review the impact of this new development before reaching any final conclusions.”
In any case, Yahoo! users affected are now advised to change their passwords and security questions, and be sure that any other online accounts have a different verification process.
As for YHOO stock investors, sure get those passwords changed, but they’d also be well served keeping an eye on what Verizon’s next move will be going forward.