Strategy in TECH...
Late last week, Sony Group announced that they were cutting their net profit forecast for the current fiscal year, fiscal 2022 which ends March 2023. Why are they trimming their profit expectations? It appears that Sony is experiencing its version of a post-COVID Peloton/Netflix sales decline as video game sales are weakening and its costs related to a recent acquisition are rising.
Famous New York Yankees catcher Yogi Berra once said, “Forecasting is very difficult, especially when it’s about the future.” Yet another wise saying from one of history’s most quoted sages. Even so, lately many regular Strata-gee readers (some of my favorite Strata-gists), have been asking me to do just exactly that – predict the future.
That is such a risky business…only a fool would take such a challenge.
<February 8, 2012> Credit rating agency Standard & Poor’s today cut the long-term debt rating on Sony Corporation to BBB+, just two notches above “junk” status, and further issued a negative outlook which suggests a potential further drop in the future. In a statement, S&P said that “the likelihood of a strong recovery in Sony’s earnings is low.” [Read more…] about S&P Cuts Sony’s Credit Rating to Just Above Junk, Issues Negative Outlook
