Today’s biggest Sony news was obviously their 1Q results which spread like wildfire across most of the Internet. Jim Cramer puts his two cents into the fray, stating some obvious points and saying, “Sony represents the ultimate play on how the consumer’s feeling, and how the consumer spends, and it’s awful.” Which is very true – one doesn’t have to look far beyond their television or newspaper to realize that the American economy is slumping and that is affecting everyone. Cramer also suggests Sony’s stock would be more profitable if they broke up in to separate companies.
Despite the disappointing numbers from Sony, there was several improvements in their core businesses but its obvious that things aren’t exactly going as Howard Stringer planned. Whilst you can’t speculate too heavily from just one quarter’s results, Sony did adjust their forecasts for the rest of the year and they aren’t ideal. Don’t fret, Sony Insider readers, as they still have a very strong brand name and as economies bounce back in several key markets things will turn around. It’s hard to maintain a premium brand and charge premium prices when your consumers are not making premium purchases.
Video courtesy of TheStreet.com.
