Twitter, the social media giant, recently made an announcement that it would be investigating unusual traffic on its website that could be caused due to state-sponsored hackers. Shortly following the claim, Twitter’s shares fell almost 7 percent in a matter of a few hours. This is the biggest drop for Twitter shares in the last two months.
In a blog post published by Twitter, it said that its customer support site faced a significant surge in traffic coming from specific servers located in China and Saudi Arabia. The security bug exposed huge amounts of data from the platform such as the phone country codes and details about locked accounts.
The blog post said,
“While we cannot confirm intent or attribution for certain, it is possible that some of these IP addresses may have ties to state-sponsored hackers. We continue to err on the side of full transparency in this area and have updated law enforcement on our findings.”
Why has the breach affected the price of shares?
One may be wondering as to why the mere news of a security breach has caused such a huge change in the billion-dollar company’s shares. Such news can definitely raise questions in the minds of users and investors. Michael Pachter, Analyst at Wedbush, said, “Clearly, a breach like this impairs user trust in the platform”.
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