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What: Shares of Internet company Cogent Communications
So what: Megaupload.com was raided and shut down by the FBI in a crackdown of copyright infringement. According to the Department of Justice Megaupload leased about 36 servers from Cogent and paid the company about $1 million per month for its services.
Now what: Analysts say the company provided 2% to 3% of Cogent’s revenue and first quarter revenue could decline as a result of today's shut-down. Considering the relatively small slice of revenue the drop looks pretty extreme for Cogent's shares. I think they'll bounce back when we get more answers and see today as a nice buying opportunity.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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