Bad news for Sony possible investors
Moody's dissuades us to invest in Sony's actions by reducing Sony's stocks to 'junk' and neither the recent PS4 sales record can save it.
As seen during a recent report by Macroaxis, Sony probabilities to fail are around 79 percent, and today, Moody's, an investor service, reduced Sony's rating from Baa3 to Ba1.
According to Moody's, the reasons are the challenges that Sony should deal with in order to improve and stabilize the company, in order to stabilize overall profitability.
According to Moody's, “while Sony has made progress in its restructuring and benefits from continued profitability in several of its business segments, it still faces challenges to improve and stabilize its overall profitability and, in the near term, to achieve a profile that Moody’s views as consistent with an investment grade rating."
Moody's also adds that the most important challenges for Sony are in the TV and PC businesses.
Quote:
The report ends with a considerations about gaming sector, saying that although the profit has increased, but “not to the extent seen with the profitability level in 2010.”
Source: vg247.com
As seen during a recent report by Macroaxis, Sony probabilities to fail are around 79 percent, and today, Moody's, an investor service, reduced Sony's rating from Baa3 to Ba1.
According to Moody's, the reasons are the challenges that Sony should deal with in order to improve and stabilize the company, in order to stabilize overall profitability.
According to Moody's, “while Sony has made progress in its restructuring and benefits from continued profitability in several of its business segments, it still faces challenges to improve and stabilize its overall profitability and, in the near term, to achieve a profile that Moody’s views as consistent with an investment grade rating."
Moody's also adds that the most important challenges for Sony are in the TV and PC businesses.
Quote:
Of primary concern are the challenges facing the company’s TV and PC businesses, both of which face intense global competition, rapid changes in technology, and product obsolescence. Sony’s profitability is likely to remain weak and volatile, as we expect the majority of its core consumer electronics businesses – such as TVs, mobile, digital cameras and personal computers – to continue to face significant downward earnings pressure.
The report ends with a considerations about gaming sector, saying that although the profit has increased, but “not to the extent seen with the profitability level in 2010.”
Source: vg247.com
News by Luca Rocchi and Marc Büchel - German Translation by Paul Görnhardt - Italian Translation by Francesco Daghini
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