H-P Gets Much Cheaper

Updated from 1:36 p.m. EDT

Shares of Hewlett-Packard(HPQ Quote) were pummeled Thursday, losing over 17% after the hardware giant blindsided Wall Street with news that its third- and fourth-quarter earnings would badly miss estimates because of problems in its server and storage division.

The stock was recently down $3.36 to $16.16.

In an announcement that stunned Wall Street, the Palo Alto, Calif., tech outfit confessed Thursday to a seven-cent earnings shortfall for the fiscal third quarter ended July 31, while forecasting an earnings miss that may be as wide as eight cents in the current quarter. ...