PS4 vs Xbox One: Wall Street's take

[Wildman107]

Within 15 minutes of the Xbox One reveal, Sony stock starts to rise and trades over 9% higher compared to earlier in the day.

Sony Corporation (ADR) (NYSE:SNE)
$22.89 +1.92 (9.16%)
Real-time: 3:13PM EDT
https://www.google.com/finance?q=NYSE:SNE&ei=4sSbUYivJ8eViQKyFw



Shortly after 2pm, Mircosoft stock begins to decline.

Microsoft Corporation (NASDAQ:MSFT)
$34.84
-0.24 (-0.70%)
Real-time: 3:14PM EDT
https://www.google.com/finance?q=NYSE:SNE&ei=4sSbUYivJ8eViQKyFw



Very interesting take from the street on Xbox One.

 

[yllus]

To say this is a direct result of the Xbox One announcement is really a bit of a leap.

 

[Skel]

To say this is a direct result of the Xbox One announcement is really a bit of a leap.

The fanboys can't declare that the PS4 has already "won" if they don't take leaps like this. It's really important if you take a moment to think about it. The entire landscape of how our lives will unfold will be directed by this very war!

 

[Wildman107]

To say this is a direct result of the Xbox One announcement is really a bit of a leap.

I think it's hardly a leap. Whenever a company has a big conference, you can usually see the impact on the stock in real-time. Watch Apple's stock later this year when they unveil the next iphone as a good example.

Sony trading was flat the entire day until after the Xbox One was revealed. I totally understand your skepticism, but these conferences can and do have an impact on stock prices.

 

[smackababy]

Funny, because after every iPhone announcement Wall Street's take is to short Apple stock. And then it releases and sells millions. I think the real thing to do is to wait for all those morons to bring down MS stock, but it, and upon release when it jumps from high sales, resell it.

 

[mikegg]

To say this is a direct result of the Xbox One announcement is really a bit of a leap.

Um, this is the direct result. What else could have made Sony's stock jump 9%?

 

[exar333]

Um, this is the direct result. What else could have made Sony's stock jump 9%?

Sony market cap: 23B
MS markey cap: 291B

SOE is essentially the only division of Sony that makes money, vs. a MUCH more diverse company in MS. Apples and Oranges.

 

[tential]

Um, this is the direct result. What else could have made Sony's stock jump 9%?

Subsidiaries and affiliates by location [edit]
Japan [edit]
Sony EMCS Corporation
Sony LSI Design Inc.
Sony Global Solutions Inc.
Sony Enterprise Co.,Ltd.
Sony Energy Devices Corporation
Sony Chemicals Corporation
So-net Entertainment Corporation
Sony Computer Entertainment Inc.
Sony Supply Chain Solutions Inc.
Sony Siroisi Semiconductor Inc.
Sony Financial Holdings Inc.
Sony Life Insurance Co., Ltd.
Sony Assurance Inc.
Sony Bank Inc.
Sony Semiconductor Kyushu Corporation
Sony Pictures Entertainment (Japan) Inc.
Sony PCL Inc.
Sony Human Capital Corporation
Sony Finance International, Inc.
Sony Facility Management Corporation
Sony Broadcast Media Co., Ltd.
Sony Broadband Solutions Corp.
Sony Marketing Co., Ltd.
Sony Manufacturing Systems Corporation
Sony Miyagi Corporation
Sony Music Entertainment (Japan) Inc.
Sony Computer Science Laboratories, Inc.
ST Liquid Crystal Display Corporation (50%)
ST Mobile Display Corporation (80%)
START Lab Inc. (50.1%)
Sony Optiarc Inc. (100%)
FeliCa Networks, Inc. (57%)
Plazastyle Corporation (Sony Plaza) (49%)
AII Inc. (60.92%)
Frontage Inc. (60%)
Field Emission Technologies Inc. (36.5%)
Columbia pictures
Rest of the world [edit]
Sony of Canada Ltd.
Sony Corporation of America
Sony Computer Entertainment America Inc.
Sony Electronics Inc.
Sony/ATV Music Publishing
Sony Music Entertainment Inc.
Sony Network Entertainment Inc.
Sony Pictures Entertainment Inc.
Sony Wonder
Sony Latin America Inc. (Florida, USA)
Sony Magnetic Products Inc. of America
Sony Argentina S.A.
Sony Comercio e Industia Ltda. (Brazil)
Sony Componentes Ltda. (Brazil)
Sony da Amazonia Ltda. (Brazil)
Sony Chile Ltda. (Chile)
Sony de Mexico S.A. de C.V.
Sony de Mexicali, S.A. de C.V. (Mexico)
Sony Nuevo Laredo,S.A. de C.V. (Mexico)
Sony de Tijuana Oeste, S.A. de C.V. (Mexico)
Sony Corporation of Panama, S. A.
Sony Puerto Rico, Inc.
Sony Austria GmbH.
Sony DADC Austria A.G.
Sony Service Centre (Europe) N.V. (Brussels, Belgium)
Sony Overseas S.A. (Switzerland)
Sony Czech, spol. s.r.o.
Sony Berlin G.m.b.H. (Germany)
Sony Deutschland G.m.b.H. (Köln, Germany)
Sony Europe GmbH (Germany)
Sony Nordic A/S (Denmark)
Sony Espana S.A. (Spain)
Sony France S.A.
Sony United Kingdom Ltd.
Sony Global Treasury Service Plc (UK)
Sony Computer Entertainment Europe Limited (UK)
Sony Hungaria kft (Hungary)
Sony Italia S.p.A. (Italy)
Sony Benelux B.V. (Netherlands)
Sony Europa B.V. (Netherlands)
Sony Logistics Europe B.V. (Netherlands)
Sony Poland Sp.z.o.o. (Poland)
Sony Portugal Ltda. (Portugal)
Sony Slovakia s r. o. (Slovakia)
Sony Eurasia Pazarlama A.S. (Turkey)
Sony (China) Ltd.
Beijing Suohong Electronics Co., Ltd. (China)
Shanghai Suoguang Visual Products Co., Ltd. (China)
Shanghai Suoguang Electronics Co., Ltd. (China)
Sony Electronics (Wuxi) Co., Ltd. (China)
Sony Corporation of Hong Kong Ltd.
Sony International (Hong Kong) Ltd.
PT. Sony Electronics Indonesia
Sony India Limited
Sony Electronics of Korea Corporation
Sony Korea Corporation
Sony Electronics (Malaysia) SDN. BHD.
Sony Technology (Malaysia) SDN. BHD.
Sony Philippines, Inc.
Sony Electronics (Singapore) Pte. LTD.
Sony Magnetic Products (Thailand) Co., Ltd.
Sony Mobile Electronics (Thailand) Co., Ltd.
Sony Device Technology (Thailand) Co., Ltd.
Sony Siam Industries Co., Ltd.
Sony Australia Limited
Sony Computer Entertainment Australia Pty. Ltd
Sony New Zealand Ltd.
Sony GULF FZE (UAE)
Sony Vietnam Ltd.
Sony Mobile Communications AB (100%) (Sweden; head office in UK)
S-LCD Corporation (50% minus 1 share)
Sony Creative Software

These are the list of companies within the large company Sony Group(Ticker: SNE) , who's stock you're talking about.

Want to take a guess what made the stock go up? Analyze every single subsidiary first. Sony Computer Entertainment is only one of those MANY.

 

[smackababy]

We know it wasn't from Sony Picture Group >_>

 

[Imp]

"Wall Street" has been pricing Sony for death for the past few years -- looks like it bottomed late 2012.

MSFT is a relatively stable rock with multiple healthy divisions bloated with money with Xbox being one of part within one of those divisions.

 

[tential]

We know it wasn't from Sony Picture Group >_>

Sony Life Insurance perhaps? Haha, just was trying to illustrate how vast these companies are. Maybe other companies who aren't so widespread we could make such a claim like with Nintendo(not public still right??), but when we talk about companies like Sony, Microsoft, Samsung, these guys have their hands in so many cookie jars it's hard to keep track. Stock price of these companies can change for any number reasons.

 

[yllus]

I think it's hardly a leap. Whenever a company has a big conference, you can usually see the impact on the stock in real-time. Watch Apple's stock later this year when they unveil the next iphone as a good example.

Sony trading was flat the entire day until after the Xbox One was revealed. I totally understand your skepticism, but these conferences can and do have an impact on stock prices.

Um, this is the direct result. What else could have made Sony's stock jump 9%?

I would consider a post-Sony press conference jump in stock price to be linked together, but a post-competitor press conference in which they basically say they'll have the must-have home entertainment purchase for Christmas 2013? I just don't see that kind of movement as a result for Sony, be it positive or negative.

In my opinion it's more likely the jump is related to this:

Sony Coverage Initiated by Analysts at Jefferies Group. (SNE)

Jefferies Group initiated coverage on shares of Sony (NYSE: SNE) in a research note issued on Tuesday, TheFlyOnTheWall.com reports. The firm set a “buy” rating on the stock.

The analysts wrote, “Refining Sony’s classification into i (Insurance), C (Content) and E(Electronics) helps to see the forest from the trees. Electronics accounts for 75% of revenues, but it is the i and C that generate all the profits, while E losses depend on the Yen. If Sony did not have the Electronics business, its aggregate OP for the last 5-10 years would have been nearly double the reported number, by our estimates.”

Several other analysts have also recently commented on the stock. Analysts at Zacks downgraded shares of Sony from a “neutral” rating to an “underperform” rating in a research note to investors on Monday, April 29th. They now have a $15.70 price target on the stock. Separately, analysts at Credit Agricole upgraded shares of Sony from an “underperform” rating to a “buy” rating in a research note to investors on Friday, April 26th. Finally, analysts at JPMorgan Chase initiated coverage on shares of Sony in a research note to investors on Wednesday, April 10th. They set a “neutral” rating on the stock.

One analyst has rated the stock with a sell rating, five have assigned a hold rating and six have assigned a buy rating to the stock. The stock has a consensus rating of “Hold” and a consensus price target of $16.65.

Shares of Sony (NYSE: SNE) remained flat at $20.97 during during mid-day trading trading on Tuesday. Sony has a 52 week low of $9.57 and a 52 week high of $22.23. The stock’s 50-day moving average is currently $17.42. The company has a market cap of $21.199 billion and a P/E ratio of 41.04.

Sony (NYSE: SNE) last posted its quarterly earnings results on Thursday, May 9th. The company reported $92.89 earnings per share for the quarter, beating the analysts’ consensus estimate of $37.00 by $55.89. The company had revenue of $1,733.03 billion for the quarter. During the same quarter in the previous year, the company posted ($388.80) earnings per share. The company’s revenue for the quarter was up 27.8% on a year-over-year basis. On average, analysts predict that Sony will post $1.03 earnings per share for the current fiscal year.

Sony Corporation (NYSE: SNE) is engaged in the development, design, manufacture, and sale of various kinds of electronic equipment, instruments, and devices for consumer, professional and industrial markets, as well as game consoles and software.

Getting a buy rating by a major bank after years of dismissal could be the cause of something like this.

 

[Drako]

Um, yeah :hmm:

I'm sure all the analysts tracking Sony corp were anxiously waiting for the MS news today. :biggrin:

 

[yllus]

Actually, scratch what I said earlier - here is the real reason the stock spiked:

Traders Buzz: Sony Corporation (ADR) (NYSE:SNE), The Boeing Company (NYSE:BA)

A surge in options contracts in Sony Corporation (ADR)(NYSE:SNE) shares just ahead of Daniel Loeb announcing a stake purchase in the Japanese company has raised concerns that some marketmen may have been aware of the move.

Shares in the entertainment and consumer electronics giant rose nearly 10 percent to $20.76 at close on Tuesday after hedge fund Third Point, owned by Loeb, said that it had acquired a 6 percent stake in the company to become its largest investor.

On Monday, the day before that announcement, trading volume in Sony options soared by more than seven times the average daily activity in the last three months. Volume in its stock rose to 6.1 million shares, more than doubling the average 2.7 million shares over the past 25 days.

Investors zeroed in on June call options at $19 a share on Monday, which at the time were slightly out-of-the-money when U.S.-listed shares closed at $18.89. Nearly 10,000 of those calls were bought on Monday for around 87 cents on average. Those calls, each representing 100 of the underlying shares, were worth $2.20 on Tuesday, which works out to about a potential $1.33 million profit.

So Sony has a new biggest stakeholder, and of all things they're thinking about spinning off their entertainment division.

 

[Wildman107]

Hi yllus,

Agreed. I think it was fun to note the ironic timing of the stock surge against the reveal of the Xbox One. It literally happened minutes afterward.

However, your evidence is far more believable and realistic.

 

[Kingbee13]

Um, this is the direct result. What else could have made Sony's stock jump 9%?

http://www.reuters.com/article/2013/05/21/us-sonycorp-nikkei-idUSBRE94K14R20130521?feedType=RSS


Sony Corp is considering evaluating a proposal from top shareholder Third Point LLC to spin off part of its movie and music business, Japanese daily Nikkei reported.

Sony's U.S. listed shares rose 9 percent on Tuesday on the New York Stock Exchange.

Billionaire hedge fund investor Daniel Loeb last week called on the company to spin off its lucrative entertainment arm, setting the stage for a clash between his activist Wall Street fund and management at the Japanese electronics maker.

 

[blurredvision]

Meh, Sony's stock dropped after the PS4 announcement, too. This is standard fare.

 

[pw38]

Um, this is the direct result. What else could have made Sony's stock jump 9%?

This was Wall Street trolling both companies for teh lulz.

 

[Fingolfin269]

Wow I can't wait for these devices to just launch. We're going to be dealing with this kind of stuff for months now.

 

[mizzou]

Sony should have learned their lesson from the PS3, it seems it humbled them. This can only make the PS4 better then the PS3 in many ways.

Microsoft on the other hand, appears to have gotten a little too cocky with XONE

 

[tipoo]

Sony and MS are both much larger than just PS4 and One. To say this is a direct result is a huge leap. And Sony stock had been falling a lot before, it's easier to rise from a fall than a more steady trajectory.

 

[PricklyPete]

I think it's hardly a leap. Whenever a company has a big conference, you can usually see the impact on the stock in real-time. Watch Apple's stock later this year when they unveil the next iphone as a good example.

Sony trading was flat the entire day until after the Xbox One was revealed. I totally understand your skepticism, but these conferences can and do have an impact on stock prices.

It is a huge leap. If you were following the market at all you would know there are rumors of Sony spinning off their media division (after a big hedge fund manager suggested it). The Sony stock price is moving on this rumor.

 

[PricklyPete]

http://money.cnn.com/2013/05/22/news/companies/sony-third-point/index.html

 

[Wildman107]

Hi yllus,

Agreed. I think it was fun to note the ironic timing of the stock surge against the reveal of the Xbox One. It literally happened minutes afterward.

However, your evidence is far more believable and realistic.

PricklyPete - This was already settled earlier in the forum. Save your "if you would do this, you would know that" put downs for another thread.

I was very aware of the spin off, but wanted to generate some fun conversation around the timing of the stock movement versus the Xbox conference.

I appreciate the fact checking though. It's good to be thorough.

 

[PricklyPete]

PricklyPete - This was already settled earlier in the forum. Save your "if you would do this, you would know that" put downs for another thread.

I was very aware of the spin off, but wanted to generate some fun conversation around the timing of the stock movement versus the Xbox conference.

I appreciate the fact checking though. It's good to be thorough.

I acknowledge that I did not read through the thread, but I stand by my statement.

If you followed the market, either you would not have made this thread, or you would have stated the fact that it likely had nothing to do with the PS4 vs Xbox. Otherwise, if you knew this to be the case and purposefully omitted that fact, you are trolling.

So again, either your post was uninformed or you were purposefully omitting details to create an inflammatory environment.