Impact on Stock Following a Data Breach – Dec 2016

If you read my original post on the Impact on Company Stock following Data Breaches, let alone the follow-ups to that post, you’ll know that I’ve effectively debunked the myth that breaches materially impact stock price. I’ve continued to update the data every 6-12 months and add new breaches to track as well.

Changes this iteration:
1. I’ve also left in the Sector Index ETF I’m using to track, for more visibility into how the sausage is made.
2. Added T-Mobile, Wendy’s, Verizon, LinkedIn (again…), and Yahoo. For T-Mobile, I thought about including Experian, but felt T-Mobile made more sense.
3. Created an automated spreadsheet to perform the calculations.
4. Removed the stock prices and focused on the percentages.

Since I began this research almost 2.5 years ago, I continue to believe that the numbers do not lie and continue my work to educate those that would say otherwise. There is really no reason to be misinformed with the amount of data available to us, and using stock price concerns as a method to add to FUD (Fear, Uncertainty, and Doubt) is simply unfounded. There is enough valid concern in the security market that you commenting about stock price is not something that is warranted. Considering the costs to respond, remediate, and harden environments after a data breach, these costs alone should be enough of a deterrent for an organization to consider becoming more aggressive in their security posture. This is also not withstanding immediate loss of business and damage to the company image and reputation.

That being said, I believe that the Yahoo breach breaches that were announced this year provide perhaps our first real outlier. Considering the timing of the notifications that are coinciding with a [poor] decision by Verizon to purchase Yahoo, we’ve seen the stock get pummeled both by the media and the market. Still, as of this writing, Verizon looks poised to push through with the acquisition and we’ll see what- if any- stock movement happens before the deal is finalized.

Finally, if you happen to be from Google and are reading this. Please know that your GOOGLEFINANCE function within Google Sheets is near impossible to work with and will literally work one second and error out the next.

If you have a request for a missing stock, or are interested in further discussion, just message me on twitter (@SeanAMason).


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