It turns out Recode's tech sources are not to be doubted. Yahoo (YHOO) was quick to confirm the online news site's Thursday claims that a massive data breach had occurred at the Sunnyvale, Calif.-based Web giant, in which at least 500 million accounts were hacked in 2014. Yahoo shares were tumbling about 1.5% in premarket trading.
The cyber theft appears to be the world's largest Internet security breach to date, in which personal data including passwords, names, telephone numbers and other details were stolen from Yahoo's platform. Yahoo attributed the theft Friday to a state-sponsored hacker. Recode was first to break news of the data breach on Thursday, citing "sources close to the situation," also noted on Thursday that the data breach could also pressure Yahoo's $4.8 billion sale of core Web assets to Verizon (VZ) , a deal struck in July that is still subject to approval by some regulators.
Meanwhile, Twitter (TWTR) could be losing its appeal among Web advertisers, putting the bread and butter of the social media giant's business model in jeopardy.
At least that's what analysts with RBC Capital Markets said in a postmarket investment note, downgrading the social media giant's stock to Sector Perform from Outperform, with an analyst team noting a recent survey found that Twitter's "value proposition to advertisers could be waning." The analysts added, "Twitter believes it can command premium ad pricing, but its dramatic ad revenue deceleration doesn't support that." Shares of Twitter were down about 4% before Friday's opening bell.
Facebook (FB) was also among Silicon Valley's premarket losers Friday, with shares falling more than 2% after the company said in a statement it may have been providing an inflated view to advertisers on some of its key video metrics that calculate view rates.
The company said in a statement the "error has been fixed, it did not impact billing, and we have notified many of our partners both through our product dashboards and via sales and publisher outreach," adding the feature has been fixed to more easily allow partners to access their video ad campaigns. (Facebook is a holding in Jim Cramer's Action Alerts PLUS charitable trust)
Finally, Finish Line (FINL) shares were charging ahead Friday after booking a quarterly earnings beat that sent shares in a more than 4% rally before the opening bell. The Indianapolis athletic-footwear retailer reported quarterly sales of $509, 3% above analysts forecasts as earnings of $0.53 a share fell roughly in line with consensus estimates.
"With our enhanced supply chain now operating efficiently, our focus shifts to streamlining our organizational structure to optimize productivity, adapt more quickly to market changes and better serve our customers," CEO Sam Sato said in a statement.
Overall, markets were down slightly as rallying crude oil prices began to slide. The S&P 500 and Dow Jones Industrials were each down about 0.2% as oil slid about 0.5% to $46.11 a barrel, based on U.S. benchmark West Texas Intermediate.