Sony Stock: Shares Rise Despite Profit Warnings

Sony's stock demonstrated surprising resilience on Wednesday, climbing 3.67% in Tokyo trading despite multiple challenging announcements. The Japanese entertainment giant revealed expectations of significant costs from potential US import tariffs, estimating a ¥100 billion (approximately €610 million) impact on their business through March 2026. Additionally, Sony's operational profit forecast of ¥1.28 trillion fell below market expectations, even when excluding the anticipated tariff costs.

Strategic Moves Boost Investor Confidence

What explains this counterintuitive market reaction? Sony simultaneously announced a substantial ¥250 billion share buyback program, which appears to have overshadowed the negative outlook. The company also plans to spin off its financial division by autumn, a structural change that could potentially unlock additional value. These strategic decisions seem to have convinced investors to look beyond immediate challenges, including projected declines in PlayStation 5 console sales and the postponement of the highly anticipated "Grand Theft Auto VI" game release to next calendar year—a development analysts describe as "a real blow for the PS5" as the title was expected to drive upgrades from older console generations.

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Source StockWorld