WikiLeak Attack May Hurt Visa Stock Tomorrow (NYSE: V)
If you try to visit Visa Inc’s (NYSE: V) website right now you will find that it is down. Try to visit www.visa.com right now and you will soon see that whatever is going on is not good for Visa (V). It may not be detrimental for the long term, but however, this may give bears an excuse to go short and gain the upper hand.
For those of you who are out of the loop, WikiLeak has had its services cut off by companies like PayPal which is owned by eBay (Nasdaq: EBAY), Mastercard (NYSE: MA) and also Visa Inc (NYSE: V). As a result, grass root supporters of the site have vowed to attack anyone trying to ‘silence’ the website and take it off the web. Whether you agree with WikiLeaks or not, one thing is certain, everyone is wondering why so many want this site shut down. We’ve never seen someone, or something, under such attack releasing content on the internet. Being a mainly web based business, we can’t help but have some sort of worry and sympathy for WikiLeaks and internet freedom of speech.
Looking at the chart of Visa (V), we can see it has failed to close above the major resistance line of the channel it is trading in. This press might bring sellers to the market and have it fail to break support levels. Let’s look at the chart of Visa Inc (NYSE: V) below.WikiLeak Stocks To Watch During “Operation Payback”
So this leads the question, more-or-less idea generation, what stocks could be negatively impacted by anonymous supporters/hackers of WikiLeaks. WikiLeak’s founder Julian Assange has already stated that he has a lot of information that would be detrimental to a major U.S. bank if it was released. Speculators are thinking that WikiLeak’s information is on Bank of America (NYSE: BAC) but however until anything is seen this is mere speculation. On another note, we can already see the direct affects of WikiLeaks on Visa Inc. (NYSE: V) by having it site down for what appears to be hours now.
Imagine if the individuals attacking Visa’s site were to take down a site such as eBay Inc. (Nasdaq: EBAY). If PayPal is on their hit list then it could be very probable that if PayPal’s site is not attacked, eBay's could. So many individuals deal with eBay Inc (EBAY) on a daily basis that having the site down for hours or days could possible cost the company tens of millions of dollars in revenue, yet alone the reputation would be tarnished with its breach of security. We want to definitely hope for the best for eBay and hope that these attacks do not cause any other businesses any more harm. We are sure that having their site down during the holiday season would be very costly.
Going back to the Visa (V) situation, we must also assess Mastercard Incorporated (NYSE: MA). Could they also be negatively impacted? The two could trade in unison while this all develops so maybe some pairs trading could be profitable as long as nothing major comes out against one (that does not come out against the other.)
One most not also forget that Amazon.com, Inc. (Nasdaq: AMZN), which originally hosted the WikiLeaks website, shut the site down and refused to host it any longer. Amazon.com (AMZN) could be another stock for us all to watch as well as they are extremely dependent upon their website for business as well. We think that shutting down of any of these sites could have short term, negative impacts on their stocks most likely.
All in all tomorrow could be an eventful day if these hackers keep on doing these attacks in response to the company’s trying to help silence them.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.