Can Sony Recover from Escalating Stock Market Punishment?

Shares of Sony Corporation SNE slid ever lower on Monday, shedding another 1.4% as investors continued to fret over the company's devastating cyber attack. This spring's hacking attack, which brought down Sony's popular online PlayStation gaming network, has been damaging both financially and in reputation. Sony estimates that is has accumulated $171 million in losses so far, and unknown users have left the PlayStation console when their personal information was exposed. The company's stock has been punished in the mean time. Sony shares were above $35 in March, but have since fallen to the $25 range after the April attacks. The company's market capitalization now stands at $25 billion, an obviously painful blow to shareholders. Can Sony recover from this debacle? In a word, yes. But with a strong caveat. Sony management must take this issue by the horns and correct it in the eyes of customers and shareholders. Online security must be beefed up beyond the industry standard. Consumer data must be protected without doubt. A rejuvenated effort to win over skepticism should be more than apparent. More than ever, profitability must come from happy customers. In blunter terms, Sony must grovel. The company must acknowledge that it made a mistake, correct it, and make amends for it. Consumers and shareholders were unnecessarily exposed to cyber attacks because of Sony, and management must make strong moves to recapture the hearts (and wallets) of the public.