Take a look at the stock market and you’ll see that FireEye, Inc. (NASDAQ:$FEYE) stock is sharply lower today. Surprisingly, this is ahead of its second-quarter earnings report, which is due Tuesday after the closing bell. There has been a FireEye Inc. hack that looks set to upset their Q2 earnings.
What caused the company’s stock to be this way?
The primary reason is due to the fact that late Sunday night (July 30), professional and personal records of a Mandiant analyst were leaked. Amongst the leaked records was a warning that a larger data breach was possible in the future.
Why is that a problem for FireEye stock?
This is a big deal for two reasons in particular: 1) FireEye owns Mandiant, and 2) FireEye does cyber security. To put this into perspective, a cyber security company getting hacked is exactly the sort of news companies in the industry try to avoid.
Consequently, FireEye stock was down nearly 4% at 11:47 a.m. EDT.
Mentioned briefly, FireEye is approaching its second-quarter earnings report, and many now forecast that the latest hack foreshadows disappointing Q2 earnings. This shouldn’t come as a huge surprise as second-quarter cyber security earnings have been quite disappointing across the board. However, only time will tell.
If you’re an investor, keep an eye out for FireEye’s earnings tomorrow to see how the latest hack will play into the results.
Featured Image: twitter
