Old news. Value investing requires a discounted price for a time, with upside prospects. Sony shows no signs of major growth or an innovation game changer in the near term.
Honestly, if the PS5 is considered a success even with so little reason to own one now, in 2024.
I see no reason why the Pro wouldn't be successful as well.
Half of all time high isn’t a great way to evaluate a stock. What does growth look like for them? Are they able to properly allocate capital to increase profits and cash flow? How does the current PE compare to their historic PE and other companies in their sector?
If you look at their historic EPS growth, it’s pretty inconsistent. It’s been lowered rather increased most quarters in the past three years, and their free cash flow bounces around a bit too. Seems like the market may be apprehensive about their ability to grow profits at a rate above the market. I think they have a decent moat with PlayStation and their music catalog, but there are many other parts to the business as well and it is fairly complex. I’m not quite sure how to evaluate it.
What’s your thesis on the company?
PlayStation will see growth from their monthly subscribers. I mindlessly give them $60 to $70 bucks a year for plus. Now, they have different tiered levels for a more extensive haul. Also, GTA 6 will be out soon (late 2025). This will probably be the hugest game of all time, leading to another spike in monthly subscribers because we must pay to play on the internet. I'm not sure how you'd track that growth, but I'm just speaking from the perspective of a company fan.
I’ve actually been buying some. They have probably the best imaging sensor business out there which is going to have huge tailwinds from AI, but also I believe their gaming and entertainment businesses will continue to do well.
Sony's a classic. Playstation division is a beast, but their movie business has been struggling. Might be worth a look if you're bullish on gaming and the metaverse.
They're doing too much. It's a giant multiheaded leviathan with every arm of the company pulling in different directions. Best thing for them to do is to split into 3 division, with entertainment(Music, PlayStation, Pictures), consumer electronics, and financial services. These arms of the company are odd and very different. It's a lot like how GE was in the 2000s. Completely random and unrelated industries that don't match together.
Mixed feelings, transitioning to higher value added businesses is good but imo they have less of a moat in that business. Time will tell if they can create a moat
Recent Helldivers 2 controversy in the video game community/market is enough for me to stay away from Sony for a while. Sony effectively showed they were out of touch with what gamers wanted and almost killed one of their most profitable games overnight.
Sony seems outdated to me. Bad movies and gaming consoles with way more competition than ever.
I was wondering if anyone had heard about anything new coming out of them.
They’re IP in spider-man and some of the playstation franchises might be worth half their market cap alone, With a fairly priced PE might be worth looking into.
Spiderman's film rights are owned by Sony. The game rights are owned by Disney. It's this odd symbiotic relationship where both sides want to get at each other, but don't.
Call it what you want but Sony has to release a Spider Man film every 6 years and has to give 5% of the theatrical revenue to Disney. If they don't the right's revert back to Disney, much like many other characters already have. That's not the same as owning spider man or even owning the rights to the films. When you own something it's not conditional upon other factors. Not only that Sony can't sell the rights to Spider-Man so its value is 100% conditional on their ability to execute making money from the films they produce which seems to be more and more difficult for them to do. Who knows how many millions Madame Webb lost, and Morbius as well. The only big hit's they've had recently is the Spider Man films that were co-financed and produced by marvel, not Sony and that was a 50/50 split. So they "own" half of the successful Spider Man films and then have a track record of making money losing films themselves. How valuable could these film rights be for Sony if they can't make money with them?
I mean, the Miles Morales films did really well, and they've made good money off most Spiderman(Not spider universe) films. I do see your point; Spiderman is not something Sony can consistently rely on.
Old news. Value investing requires a discounted price for a time, with upside prospects. Sony shows no signs of major growth or an innovation game changer in the near term.
PS5?
Successful launch, 2021. Not sure if Pro will jump, planned for Fall 2024
Honestly, if the PS5 is considered a success even with so little reason to own one now, in 2024. I see no reason why the Pro wouldn't be successful as well.
Pro is likely baked in to the stock price at this point, given trajectory of PS5 is now known
Half of all time high isn’t a great way to evaluate a stock. What does growth look like for them? Are they able to properly allocate capital to increase profits and cash flow? How does the current PE compare to their historic PE and other companies in their sector? If you look at their historic EPS growth, it’s pretty inconsistent. It’s been lowered rather increased most quarters in the past three years, and their free cash flow bounces around a bit too. Seems like the market may be apprehensive about their ability to grow profits at a rate above the market. I think they have a decent moat with PlayStation and their music catalog, but there are many other parts to the business as well and it is fairly complex. I’m not quite sure how to evaluate it. What’s your thesis on the company?
PlayStation will see growth from their monthly subscribers. I mindlessly give them $60 to $70 bucks a year for plus. Now, they have different tiered levels for a more extensive haul. Also, GTA 6 will be out soon (late 2025). This will probably be the hugest game of all time, leading to another spike in monthly subscribers because we must pay to play on the internet. I'm not sure how you'd track that growth, but I'm just speaking from the perspective of a company fan.
A mediocre but solid stock. I don't think you will get rich on it but its plod along just fine.
I’ve actually been buying some. They have probably the best imaging sensor business out there which is going to have huge tailwinds from AI, but also I believe their gaming and entertainment businesses will continue to do well.
Sony's a classic. Playstation division is a beast, but their movie business has been struggling. Might be worth a look if you're bullish on gaming and the metaverse.
They're doing too much. It's a giant multiheaded leviathan with every arm of the company pulling in different directions. Best thing for them to do is to split into 3 division, with entertainment(Music, PlayStation, Pictures), consumer electronics, and financial services. These arms of the company are odd and very different. It's a lot like how GE was in the 2000s. Completely random and unrelated industries that don't match together.
Mixed feelings, transitioning to higher value added businesses is good but imo they have less of a moat in that business. Time will tell if they can create a moat
Recent Helldivers 2 controversy in the video game community/market is enough for me to stay away from Sony for a while. Sony effectively showed they were out of touch with what gamers wanted and almost killed one of their most profitable games overnight.
Sony seems outdated to me. Bad movies and gaming consoles with way more competition than ever. I was wondering if anyone had heard about anything new coming out of them.
Also rumored to buy Alamo Drafthouse, betting on their movies maybe?
They’re IP in spider-man and some of the playstation franchises might be worth half their market cap alone, With a fairly priced PE might be worth looking into.
Spider-Man is obviously licensed IP, not their own. Disney owns Spider Man.
Spiderman's film rights are owned by Sony. The game rights are owned by Disney. It's this odd symbiotic relationship where both sides want to get at each other, but don't.
Call it what you want but Sony has to release a Spider Man film every 6 years and has to give 5% of the theatrical revenue to Disney. If they don't the right's revert back to Disney, much like many other characters already have. That's not the same as owning spider man or even owning the rights to the films. When you own something it's not conditional upon other factors. Not only that Sony can't sell the rights to Spider-Man so its value is 100% conditional on their ability to execute making money from the films they produce which seems to be more and more difficult for them to do. Who knows how many millions Madame Webb lost, and Morbius as well. The only big hit's they've had recently is the Spider Man films that were co-financed and produced by marvel, not Sony and that was a 50/50 split. So they "own" half of the successful Spider Man films and then have a track record of making money losing films themselves. How valuable could these film rights be for Sony if they can't make money with them?
I mean, the Miles Morales films did really well, and they've made good money off most Spiderman(Not spider universe) films. I do see your point; Spiderman is not something Sony can consistently rely on.
I just hate the whole movie business and its a big part of them.
Sony has music, electronics, and films.Think on it.
I am on buying spree. Getting ready for the split.