Sony shares skyrocketed to $81.25 days after the company announced record Q1 PlayStation earnings, and now analysts think PlayStation 5 could surge stocks by another 20%.
Sony just reported a massive $2.17 billion in profits in Q1'20, nearly half of which was generated by the PlayStation brand. Sony's Q1 numbers are the highest in the history of the video games industry, and PlayStation earnings amounted more than 30% of Sony's total revenues. Sony shares have skyrocketed by nearly 50% year-over-year to $81.25 as a result, the highest point since June 2001. This could just be the beginning of the upward trajectory.
This milestone wasn't lost on investors, nor was it lost on analysts, who now predict big things for Sony's FY2020 period. The company expects the PlayStation brand to deliver a record $2.24 billion in profits on $23.4 billion in revenues, driven primarily by the PlayStation 5 and digital software.
Analysts are in agreement. Firms predict Sony's stock will rise by 20% to over $90 throughout the fiscal year as Sony rolls out the next-generation console.
Sony says PlayStation 5 production is going smoothly, and assures gamers that COVID-19 hasn't impacted development of key first-party PS5 exclusive games.
The PlayStation 4, however, just hit 112.3 million units sold-in worldwide and will continue to be a major contributing factor to Sony's earnings.
Sony will support the PS4 well into 2022, and confirms that new first-party PS4 games are still coming after the PS5 releases.
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