Why Mimecast Stock fell today
What happened
Actions of Mimecast (NASDAQ: MIME), an email security management company, slipped today after saying that a certificate the company uses to authenticate certain Microsoft services have been compromised. the technological actions fell 12.8% today and was down 12.6% as of 3:28 p.m. EST.
So what
The company said in an SEC filing today that about 10% of its customers are using the now compromised certificate and that there were “indications that a low single digit” of its customers were specifically target. Mimecast said it contacted customers to “resolve the issue.”
Image source: Getty Images.
Mimecast said Microsoft informed them that a “sophisticated threat actor” compromised the certificate the company uses to authenticate some of Microsoft’s services, including Microsoft 365 Exchange web services. This too stated in the file that: “The safety of our customers is always our top priority. We have engaged a third-party forensic expert to assist us with our investigation, and we will work closely with Microsoft and law enforcement, where applicable. ”
Today’s drop in stock prices leaves Mimecast stock down 7.9% in the past 12 months.
Now what
Today’s Mimecast announcement comes as tech and cybersecurity firms are still reeling from a recent attack on Solar winds, in which the company said US government systems were compromised by Russian-linked hackers. Mimecast did not say whether or not today’s announcement is related to the SolarWinds attack.
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