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Opalesque Industry Update - Ransomware attacks can cost organizations huge amounts of money, and their frequency is on the rise. Ransoms range from thousands to millions of dollars. If the ransom isn't paid or the attacker withholds the decryption key, the resulting data loss and downtime can cripple a business.
But how do investors react to ransomware attacks? Do share prices on Wall Street reflect the damage and security posture of attacked companies? In this report, we'll attempt to answer those questions. Comparitech researchers analyzed historical share price data of 24 companies listed on the New York Stock Exchange. For each stock, We pulled the closing share prices ranging from six months prior to a ransomware attack being publicly reported up to three years afterward. We additionally broke down the data by the type of malware used, time of the incident, and industry. Highlights of analysis: • Share prices plummet 22% on average immediately after a ransomware attack. • The initial dip is short lived. Prices mostly recover within a day, and stocks are back to outperforming the market within 10 business days on average. • Share prices rose 4.4% on average six months after a ransomware attack, outperforming the NASDAQ by 11.2%. • Of all the strains we examined, Ryuk ransomware had the largest negative impact on share price. • Although tech companies' share prices suffered a larger initial drop following public disclosure of an attack, they outperformed non-tech companies 6 months after. Article source - Opalesque is not responsible for the content of external internet sites |
Industry Updates
Do ransomware attacks impact stock market performance?
Friday, September 24, 2021
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