Sony Shares Plummet, Reach a 32 Year Low
Things always get worse before they get better, right? At least that is what I’m sure Sony is hoping, as the company’s shares slipped to an incredible low this morning, one that hasn’t been seen in the past 32 years.
This disheartening news is undoubtedly in response to yesterday’s news regarding Sony’s poor performance during the 2011 fiscal year. The company saw a whopping 7% drop in its shares, which yes, is really bad. A US trader emphasized the significance of this loss, telling Reuters:
I didn’t see anything positive in there. There is really nothing in there that can justify buying the stock.
You see the loss narrowing in the TV business. That’s fine, but I don’t see any future in the TV business, so it doesn’t matter what they do.
Yuuki Sakurai, Fukoku Capital Management told the BBC something similar, adding that Kaz Hirai doesn’t appear to be the big turnaround hope that everyone is counting on him to be.
Sony is facing a lot of difficulties and the new president has not been able to produce a clear plan as to how he will turn around the company.
The little that investors have heard, they are not very impressed with.
Unfortunately, there isn’t much of a silver lining to be found there. While Sony’s gaming division makes up only a small portion of the company, they better plan on going into E3 with guns blazing if they hope to get the Sony and PlayStation names back on favorable terms.