Symantec stock dives 33% as mystery investigation has people imagining the worst
Summary
The worlds top maker of cybersecurity software started selling more to corporations — chasing growth and balancing out its consumer-centric business.So Wall Street was blindsided when the Mountain View, Calif., company disclosed that it is conducting an internal investigation that will delay the filing of its annual report and could potentially lead to a restatement of earnings."We believe this raises a red flag as it relates to the potential severity of this issue," said Anne Meisner, an analyst at Susquehanna International Group, in a note to clients.Last year, Symantec looked into acquiring Splunk Inc., but decided against it after reviewing the analytics software companys finances, people familiar with the matter said at the time.Symantec has not identified the former employee who lodged the complaint that launched the internal probe, but the management turnover over the last two years suggests there are plenty of senior people with vast knowledge of the business who could have complained.
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