Sony Shares Drop Following "Underperform" Rating

Illustration for article titled Sony Shares Drop Following Underperform Rating

Shares of Sony Corporation closed 5.9% down in Japan today, following financial service company Credit Suisse Group AG's downgrade of their stock rating from "neutral" to "underperform"

Sony stock closed at 1,825 yen on the Tokyo Stock Exchange today, the lowest point since December 8th - the day they cut 8,000 jobs. Credit Suisse analysts cite the company's slow reaction to the financial crisis as the reason behind the ratings downgrade.

“We believe fundamental changes to its business structure are necessary,” Koya Tabata, a Tokyo-based analyst at Credit Suisse, wrote in a report released after the close of trading yesterday. “Compared to its peers both at home and overseas, Sony has been slow to react to the current crisis.”

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Along with the downgrade from Credit Suisse, Deutsche Bank AG reduced their Sony recommendation from "buy" to "hold". It's a rough position to be in, but if anyone can handle a bit of financial bumpiness it's Sony. Hit the link for depressing numbers I can only pretend to understand.

Sony Shares Fall After Investment Rating Downgrades [Bloomberg]

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DISCUSSION

Sony is usually more interested in revenue than profit from what Ive seen. Decreased sales (regardless of the loss in profit)hurt them more than actual financial issues. They'll be hit harder for that reason as the other companies focus more on profit.

A reason why I root for Nintendo is... well I just like the color blue. So despite using my 360 more.. alot more... BLUE OCEAN... such great branding

Im blue doobie dooba dee doo aboo dee aboo ai dooba doobie dee doo...

what was supposed be the song by Eifel 65.. no nevermind...

*Sigh* *sigh65*