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These 10 internet stocks could be in trouble if they’ve been hacked

By Ben Levine for Kapitall.

According to a story that the New York Times broke Tuesday, a group of Russian hackers have amassed a collection of around 1.2 billion online username/password combinations . Yes, 1,200,000,000 of them.

The company that discovered the records, Hold Security , isn't naming the victims who range "from Fortune 500 companies to very small websites," but apparently most of them are still vulnerable. And that's a big deal.

While the list hasn't been released due to still-extant security concerns of many companies, it's likely that many of us are using sites that have been targeted-and, very possibly, our own passwords too. Though there isn't much way to know who has been hit unless you're a hacker yourself, or on the inside of one of these companies, there are ways to determine what companies would be at risk should they turn out to be targets.

We took a look at a long list of internet stocks, and screened them to see which had positive VIX correlations , meaning that they closely align with the Chicago Board Options Exchange Volatility Index (VIX). A positive correlation indicates that investor predictions about a company being volatile may be accurate.

While few of these stocks have had recent press about hacking, one of the top players on the list, AOL ( AOL ), was hacked in April . A company post confirmed that "there was unauthorized access to information regarding a significant number of user accounts." "Significant" sounds a bit like PR-speak for "rather large."

Another significant member of the list, networking giant LinkedIn ( LNKD ), hasn't received press coverage about hacks recently. However, on the subject of a virus operating out of Yahoo! Mail , a data researcher at the German security firm G Data said that the author could likely "also use social media platforms such as Facebook and LinkedIn."

Many companies have been hacked, but do you think these companies' volatility puts them in a riskier position? Take a look at the tools below to begin your analysis, and let us know what you think in the comments.

Click on the interactive chart to view data over time.

1. AOL, Inc. ( AOL , Earnings , Analysts , Financials ): Operates as a Web services company that offers a suite of brands and offerings for the worldwide audience. Market cap at $3.45B, most recent closing price at $43.70.

Correlation with the VIX index at 0.551 over the last 60 days.

2. ChinaCache International Holdings Ltd. ( CCIH , Earnings , Analysts , Financials ): Provides Internet content and application delivery services to businesses, government agencies, and other enterprises in the People's of Republic of China. Market cap at $515.32M, most recent closing price at $22.57.

Correlation with the VIX index at 0.584 over the last 60 days.

3. Jiayuan.com International Ltd. ( DATE , Earnings , Analysts , Financials ): Operates an online dating platform in the People's Republic of China. Market cap at $222.46M, most recent closing price at $7.41.

Correlation with the VIX index at 0.52 over the last 60 days.

4. IAC/InterActiveCorp. ( IACI , Earnings , Analysts , Financials ): Engages in the Internet business in the United States and internationally. Market cap at $6.16B, most recent closing price at $74.16.

Correlation with the VIX index at 0.56 over the last 60 days.

5. LinkedIn Corporation ( LNKD , Earnings , Analysts , Financials ): Operates an online professional network. Market cap at $23.93B, most recent closing price at $199.59.

Correlation with the VIX index at 0.508 over the last 60 days.

6. Taomee Holdings Ltd. ( TAOM , Earnings , Analysts , Financials ): Operates as a children's entertainment and media company in the People's Republic of China. Market cap at $234.51M, most recent closing price at $6.39.

Correlation with the VIX index at 0.614 over the last 60 days.

7. ClickSoftware Technologies Ltd. ( CKSW , Earnings , Analysts , Financials ): Provides workforce and service management software products and solutions. Market cap at $297.81M, most recent closing price at $9.21.

Correlation with the VIX index at 0.588 over the last 60 days.

8. eLong Inc. ( LONG , Earnings , Analysts , Financials ): Operates as an online travel service provider in the People's Republic of China. Market cap at $566.4M, most recent closing price at $16.26.

Correlation with the VIX index at 0.593 over the last 60 days.

9. QuinStreet, Inc. ( QNST , Earnings , Analysts , Financials ): Operates as an online media and marketing company in the United States and internationally. Market cap at $297.43M, most recent closing price at $6.85.

Correlation with the VIX index at 0.613 over the last 60 days.

10. Sina Corp. ( SINA , Earnings , Analysts , Financials ): Provides online media and mobile value-added services (MVAS) in the People's Republic of China. Market cap at $5.09B, most recent closing price at $76.08.

Correlation with the VIX index at 0.566 over the last 60 days.

(List compiled by Ben Levine. Monthly returns sourced from Zacks Investment Research. All other data sourced from Finviz.)

Kapitall Wire is a division of New Kapitall Holdings, LLC. Kapitall Generation, LLC is a wholly owned subsidiary of New Kapitall Holdings, LLC. Kapitall Wire offers free investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by New Kapitall Holdings, LLC, and its affiliate companies.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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