Sony Stock Leaps 6.5%
2006 was a roller-coaster year for Sony. The PS3 experienced a major European launch delay, Blu-Ray laser diode manufacturing issues caused a drastic cut in system availability, and a series of crime related to the PS3 launch in the U.S. garnered widespread news attention. At the same time, that next-gen console was yet another attempt at a big fat meal ticket, and now, it seems that train - as massive and weighed-down as it is - is finally starting to roll.
Sony is kicking off 2007 with some good financial news...finally. The company's shares closed yesterday at 5,550 yen (about $46), which is a 6.5% leap. The number is even more significant because it's the biggest stock increase in over a year for Sony, and leading investment bank Goldman Sachs have re-added the company's stock to their "buy" list. Japanese analyst Yuji Fujimori bumped up the 12-month-share-price estimate to 6,200 yen (about $52); that price was previously set at 5,150 yen ($43).
Apparently, though, Sony's gaming division wasn't solely responsible for the stock increase, nor was it the reason for Goldman Sachs' addition. Sony stock was elevated to "buy" due to Sony's good TV sales over the holiday season, and its cheap valuation. But even so, the electronics giant recently announced they had hit their goal of shipping 1 million PS3 units to the U.S. in 2006, which most people didn't believe would happen.
However, in the end, this is a darn good start to the year for Sony.
1/10/2007 Ben Dutka