NSA Surveillance Fallout Hurts U.S. Companies Abroad

Wayne Ellis

[European and Chinese flag shopping bags]

NSA Surveillance Fallout Hurts U.S. Companies Abroad (USAToday.com)

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As more details of the National Security Agency’s (NSA) widespread spying efforts come to light, the companies complicit in these efforts — or even thought so — are paying the price overseas. In China, developing Asia and South America, sales for IBM, Microsoft, Hewlett Packard (HP) and Cisco products all have dropped significantly since allegations against the NSA came to light. Each company is assumed to have been involved. For example, Cisco saw sales for its top five emerging markets post year-over-year declines between 18 percent and 30 percent. While macroeconomic uncertainty may also be partly to blame, investors cannot ignore the fact that international sales are falling, when they should be rising. Is this enough to keep you away, or a momentary blip on the screen of profits.

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