Tuesday, January 17, 2012

The Other Shoe Drops for Zappos

The CEO and co-founder of online shop Zappos, Tony Hsieh, wrote a book called
Delivering Happiness. In it, he that customer service is absolutely critical in
today's hypercompetitive world. But Zappos customers might not be happy right
now. Over the weekend, hackers accessed personal information on potentially more
than 24 million accounts. The good news is credit card numbers were not
affected, but Zappos still has encouraged its customers to change their
passwords. The company is just one of many others that have experienced security
breaches. Some of the biggies include Sony (NYSE: SNE ), EMC (NYSE: EMC ) and
Lockheed Martin (NYSE: LMT ). Zappos actually is wholly owned by Amazon.com
(NASDAQ: AMZN ), but the incident has not fazed investors, with AMZN stock up
over 2% Tuesday. Also, the security breach might be good news for security
software operators. Companies like Fortinet (NASDAQ: FTNT ) and Check Point
Software (NASDAQ: CHKP ) are posting strong gains in todays trading. Tom
Taulli, InvestorPlace.com

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