Sony’s Stock Reportedly Drops About $10 Billion Following Latest Earnings Report

Sony’s financials have apparently taken a hit with reports estimating stock value to be down approximately $10 billion in the last week. This drop is at least partially attributed to the company not being able to hit the projected mark on PlayStation 5 console sales and adjusting their original estimate from 25 million units sold to around 21 million by the end of March. Apparently that 4 million unit difference was enough to cause a drop in stock value with shares falling as much as 8.4%.

Console sales were not the only reason, however, as reports say that another factor was a drop in operating margin in Sony’s gaming business. In fact, according to what Jefferies equity analyst Atul Goyal told CNBC, the latter may have been a bigger factor as the reported 6% is about half what Sony’s margins have been historically. Either way, CNBC’s calculations made using FactSet data ended up with a $10 billion total stock price drop and that’s not good.