Sony Stocks Hit 10 Year Low

Despite Sony planning to lay off 10,000 employees with further cuts coming to their newly acquired EMI (will be absorbed with Sony Music) division, Sony stocks as of late have been taking a beating. Like most companies, Sony hit its high in late 2007 with a $58 a share and began to decline as the housing bubble burst and the world economy began to slow down. With an $18 low in 2009, Sony like other tech companies began to build value again as consumer started to spend again with major governments passing different spending packages to help their own individual economies. Sony like others would ride the wave, hitting a $40 high in 2010 and a slightly lower $36 high in early 2011. Since then, the companies stock price has been plummeting, hitting a 10 year low today at $15.61.

While Sony’s PlayStation 3 has continued to prosper, analysts have been weary of the PlayStation Vita while no help has been given from Sony’s troubled television business which has failed to make a profit in 8 years. Under new CEO Kaz Hirai, Sony has introduced the ‘One Sony’ strategy which will focus on Sony’s core business. The three pillars include digital imaging, games, and mobile. Arguably the most healthy parts of Sony, these three departments will see continued support and resources invested to further strenghten and expand them.

Of course, watchful investors saw the same thing happen to Apple which saw its stock hit $78 in 2009 before skyrocketing to a $640 high just last month. With continued emphasis on their Xperia line of phones, new digital cameras like the NEX-F3 and potential OLED TV’s in the future, is Sony poised for a return, making the current stock price a buy?