This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

LinkedIn Confirms Hacking; Why Its Stock Is Teflon

By Julia Boorstin, CNBC Correspondent

NEW YORK ( CNBC) -- After a day of rumors and investigations, LinkedIn (LNKD) has formally acknowledged that some of its users passwords have been "compromised."

This is the worst privacy and security news to slam the business networking service yet.

The company apologized and encouraged "best practices" to update passwords.

This is no small deal: by some reports it impacted over six million passwords, about 4 percent of LinkedIn's users. But still, LinkedIn's stock has been remarkably robust. At one point Wednesday it sank about 1.2%, but it closed the day up 9 cents, and it's up nearly 50% year-to-date. On Wednesday not a single analyst issued a note in response to the news or changed a rating or stock target.

More from CNBC
Here's Why Investors Are Pulling Money Out of the Market
Take-Two Interactive CEO Talks Digital, Mobile at E3
Forget 'Fear Factor': Banks, Market Set to Soar: Bove

So why is the stock immune to a hack attack?

LinkedIn's built a strong reputation on these matters. The great effort LinkedIn has made to stay out of the spotlight on security and privacy concerns seems to have paid off. The company hasn't drawn the outrage and concerns that Facebook (FB) has when it comes to privacy issues. This is partly due to LinkedIn's focus on business, rather than the personal photos and details people share on Facebook. By its very nature of enabling people to share their professional profiles, there is simply less risk.

I spoke to a number of Wall Street analysts who tell me they do not expect the news to at all impact LinkedIn usage. Why? These hack attacks and the need to change passwords are perceived as a cost of doing business in today's digital world. As long as "no one gets hurt," as one analyst put it, it's "not a big deal."

Perhaps most interesting, Wednesday's hacking news follows media storm over LinkedIn's mobile app violating personal privacy by improperly downloading and sharing personal details from users calendars, including conference call dial-ins and private notes. Users complained about the mobile app, and LinkedIn responded by changing its policy--it no longer downloads or shares the "notes" section of appointment reminders. When this news came out, the stock barely moved--ending the day less than a percentage point.

The company plans to update its privacy policy to give users more control sometime in the next few days. We'll hear when LinkedIn does its next quarterly report if there's been any impact on LinkedIn traffic. But Wall Street certainly thinks that users will take the news in stride; they'll change their password and perhaps click on through to connect with the service.

--Written by Julia Boorstin at CNBC

CNBC is a world leader in business news, providing real-time financial market coverage and business information.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs