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Sony stock stiffs on limp earnings

While Sony's games division may have gone into the black, a small rise in profit and a cut outlook in recent quarterly financials damaged the company's shares to the tune of 7 percent today, says this.

"The earnings report prompted HSBC to cut its rating on Sony to 'neutral' from 'overweight', citing the risk that a weakening U.S. economy and the strengthening yen could sap future profits at the maker of PlayStation 3 game consoles and Vaio PCs," said the report.

Jubilation in the games trade met the news that Sony's PlayStation division had finally turned a profit earlier this week, and any dip is already being seen as short-lived.

"Investors appear to be overselling Sony," said Koichi Ogawa, a chief portfolio manager at Daiwa SB Investments. "Maybe this presents a buying opportunity for the stock as, if you take a step back and see, Sony has started making profits on its game business."

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Patrick Garratt

Founder & Publisher (Former)

Patrick Garratt is a games media legend - and not just by reputation. He was named as such in the UK's 'Games Media Awards', the equivalent of a lifetime achievement award. After garnering experience on countless gaming magazines, he joined Eurogamer and later split from that brand to create VG247, putting the site on the map with fast, 24-hour a day coverage, and assembling the site's earliest editorial teams. He retired from VG247, and the games industry, in 2017.

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