Carbonite Stocks Drop After They Drop Advertising on Rush
It seems that conservatives upset with Carbonite are logging on, pulling their files off the remote Carbonite servers and deleting their accounts. They are also selling off the Carbonite Stocks.
From the DailyCaller here:
On Saturday, Carbonite CEO David Friend released a statement on his company’s website declaring that Carbonite had decided to “withdraw” advertising from Rush Limbaugh’s radio show in the wake of his controversial remarks involving Georgetown Law student Sandra Fluke because it will “ultimately contribute to a more civilized public discourse”:
Even though Mr. Limbaugh has now issued an apology, we have nonetheless decided to withdraw our advertising from his show. We hope that our action, along with the other advertisers who have already withdrawn their ads, will ultimately contribute to a more civilized public discourse.
However, it hasn’t done much to contribute to his company’s stock price. Since the market opened on Monday through its close today, Carbonite stock (NASDAQ:CARB) has plummeted nearly 12 percent, outpacing the drop of the NASDAQ index in that same time period by nine-and-a-half points. It was also one of the biggest decliners on the NASDAQ on Tuesday.
Ah, the free market is speaking. Actually, I never use Carbonite or any other online backup. Its too risky to give away data ownership to an external group that will have access to snoop your files. There is a privacy issue, plus there is a major risk of actually losing the files that you think you are backing up. Just look at MegaUpload. Tons of people were using Kim DotCom’s service for legitimate file backup. When the Feds swooped in and shutdown the site, people lost those files.
Carbonite’s stock reflects the value of the company. Its obviously worth less now that it is not advertising on the most popular radio show on the planet. But its a security issue to give your files to any external group. Only use online backups for files that have a temporary nature or files you can live without.
