Symantec (NASDAQ:SYMC) was in the news this week as it was revealed that some hackers had acquired access to codes for Symantec’s consumer security software like Norton Antivirus and pcAnywhere. Apparently, the hackers demanded a payment of $50,000 from Symantec, threatening to release the codes which could compromise the security of PC users who are using the previous versions of the software. [1] Symantec refused to pay the hackers, released some patches which would fix the vulnerabilities and contacted users to update their software.
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The hacker has already leaked the source code for pcAnywhere publicly, and Symantec expects that the hacker may release codes for other programs like Norton Antivirus and Norton Internet Security in the coming weeks. While the company is making its best efforts to convey that the leaked code was from the older versions of the software, the damage might already have been done.
Symantec currently leads the consumer antivirus software market with 46% market share. We expect its market share to decline marginally in the coming years in the face of increasing competition. Controversies like these could lead damage Symantec’s image as well as impact its revenues. You can check the impact of a decline in Symantec’s consumer anti-virus market share on the Trefis price estimate using this chart.
Symantec competes primarily with McAfee by Intel (NASDAQ:INTC), and other antivirus software makers like Kaspersky and Trend Micro. We currently have a $21 Trefis price estimate for Symantec, which stands nearly 20% above its current market price. Norton Antivirus accounts for around 37% of its total value.
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Notes:- Hacker releases Symantec source code, Reuters [↩]
