What Does it Cost: $7.84 Billion, Market Cap Lost Following Release Of H-P CEO’s Confidential Memo

> Company Market Cap: $79.29 Billion
> One-Day Loss in Market Value: $7.84 Billion

“We must watch every penny and minimize all hiring,” wrote Leo Apotheker, chief executive of Hewlett-Packard Co., in an email to senior H-P executives. This message,leaked yesterday, warned that H-P was in for “another tough quarter.” Shares of the company’s stock began to fall in premarket trading following news of Apotheker’s email. In an effort to staunch the blood loss, H-P released its earnings report a day earlier.

How much can a leaked memo cost a company? In this case, Hewlett-Packard lost $7.84 billion in market cap. The company also expects earnings for the current quarter of $1.08 a share, significantly lower than analysts’ expectations $1.23 per share. Chances are these numbers will do little to save H-P’s hiring practices.

Charles B. Stockdale