Sony share prices drop 11%, biggest decline in four years
Sony’s stock took a tumble this morning due to the company reporting its eight straight quarter of losses. Their shares dropped by 11%, down to 1,360 Yen.
This would be the biggest drop in their shares since late 2008. The reason for this drop is that the people who recently bought Sony stock thought the weakening yen would turn around Sony’s profits. There was a huge rush of people thinking this would happen and they seem to be disappointed with Sony’s latest quarterly results.
The weak yen seems like it has helped them a bit but they still managed to report losses this past quarter.
Sony looks like they may be on the track to not reporting losses every quarter but I’m far from an expert. Kaz Hirai has been doing a pretty good job since he took over the company and I do believe he has them on the right track, though it looks like it is going to be a long ride.
Their Playstation meeting that takes place on February 20th just might be the thing they need to boost their stock. If they announce their next-generation console at the event it could cause excitement for the Playstation brand that could spill over into the stock market. At least I would think so.
At the same time if a new product doesn’t live up to consumer expectations in its first impression it can also send share prices tumbling down. We’ll have to wait and see how their February 20th Playstation meeting effects their stock.