March 7, 2014
Sony: Big Losses for Sony Corp.
After a long struggle, Sony Corporation is finally getting out of the PC business. The company has been in steady decline for the past decade, as consumer interest in PCs has fallen substantially. After the recent rise in public demand for smart phones and tablets, Sony continued to manufacture PCs instead of jumping on the mobile bandwagon, resulting in an additional 10% loss in profit.
Sony remains consistently strong in TV sales, but is not the leading TV manufacturer in the world, having lost $7.5 billion in the industry to the South Korean Samsung Group. Even the extremely popular game console PlayStation, with the recent launch of its fourth series the PlayStation 4 (PS4), won’t generate enough revenue to make up for expected losses due to failures in the PC industry.
Researchers estimate anywhere from $300 to $400 million in losses for Sony in 2014, and a decrease in shares. Due to Sony’s belated decision to stop producing PCs and shift to more populardevices, Apple, Samsung, LG, and many other competitors have far surpassed Sony in consumer electronics, making them much safer investment options.
February 6, 2014
Disney: Box-Office Hit 'Frozen' Unfreezes Disney Shares
The Walt Disney Co. experienced a dramatic increase in stock market value due to the family hit ‘Frozen’ released late last year. Shares jumped 3.9% from $71.76 to $74.52 on Wednesday. This large success comes in the wake of several box office failures earlier last year that caused Disney shares to fall far below the market average. Future prospects for Disney look promising as they continue to profit off of merchandise produced from the film.
Furthermore, reports indicate that Disney is close to a settlement with Dish Network Co. (DISH) after filing for a lawsuit that claimed the satellite service provider’s ad-skipping technology was affecting Disney sales, entitling Disney to financial compensation. If the court forbids DISH from using the technology, viewership of Disney ads will increase, and potentially their shares as a result.
February 6, 2014
Facebook: More Ads Lead to Greater Shares
Facebook shares grew 16% by last Thursday, January 30th, after recent decisions to sell ad space on the website’s mobile app. Shares reached an all-time high of $62.30 on Thursday, almost double their worth in 2012. As more and more people rely on their smart phones for internet access, companies like Facebook and Google are making changes to their marketing. Researchers believe that by 2017, 4 billion people worldwide will be accessing the internet via their mobile phones.
The Facebook-owned Instagram debuted its first ad space on the app late last year. This is believed to be the source of the company’s booming growth. Investing in Facebook this year is a smart and safe move. However, investors should remain cautious, as recent data suggests that fewer and fewer social networking users are on Facebook or Instagram, and instead opt to use other mobile messaging services, such as snapchat.