Adobe (ADBE) Responds to Hacking Report (Update 1)

Updated to reflect Adobe's response. 

NEW YORK (TheStreet) -- Adobe (ADBE) has refuted a media report that up to 152 million customer accounts have been compromised by hackers. According to Reuters, cybersecurity firm LastPass found data, including email addresses and passwords, from millions of Adobe users on underground Web sites frequented by cybercriminals. 

In an email sent to TheStreet on Friday Adobe said that the reported figure of 152 million compromised accounts "does not accurately reflect the number of impacted Adobe users."

Adobe had already admitted to a lesser security violation which occurred in mid September. Initially, the software maker said that 2.9 million customers were affected, a figure which quickly grew to 38 million.

On Friday Adobe told TheStreet that it has emailed all affected users and automatically prompted a password reset. A spokesperson also said that many affected accounts were invalid and inactive and that no unauthorized activity has occurred so far.

Despite the news, shares have gained 1.9% to $54.18, leading the S&P 500's 0.82% gain.

TheStreet Ratings team rates Adobe Systems Inc as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about its recommendation:

"We rate Adobe Systems Inc (ADBE) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

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