Since the last post about Sony, Sony’s stock had a swing between $40/share to $50, basically going from ~$43/share to $50/share and dropped to $40/share and now back to $50/share today.
As mentioned, the reason I believe in Sony is because Blu-Ray had become the de facto standard of HD storage media. With this, I believe Sony will continue to see improvement on its Playstation unit, and the future benefits will be huge. However, one should realize that Sony is more than just Playstation, and there are many factors affecting Sony’s results:
- Sony/Ericsson cell phone unit – it’s not doing well lately, and will likely see further squeeze from RIM/iPhone, etc.
- TVs – It can be losing ground to lower price competitors, but Sony seems to be addressing this.
- Computers – no major short-term or long-term challenge in this area other than Apple, but this is nothing new.
- Sony’s Media – its picture and music unit seems to be doing ok.
- Others – Sony has many other businesses such as Sony Financial Holdings (an insurance company). In today’s environment, one never knows how a financial company will do.
- Exchange rate – Sony’s recent plunge to $40/share coincides with Yen’s appreciation over USD. USD can certainly plunge again, although lately it has firmed up a bit.
Therefore, beware of the various factors when one considers Sony as an investment.
