Sony aims to become a trillion-dollar stock by 2030 through various strategic initiatives.

From Nasdaq: 2024-10-22 05:25:00

Sony (NYSE: SONY) is a leading global company in gaming, film production, music publishing, and consumer electronics. Despite a 430% stock price increase in the past 10 years, its market cap of $110 billion falls short of industry giants like Disney and Microsoft. Can Sony rally to become a trillion-dollar stock by the end of the decade?

In fiscal 2023, Sony generated significant revenue from its gaming and network services, entertainment, technology, music, pictures, and financial services divisions. Although its gaming division is facing challenges, Sony is offsetting volatility by licensing content to streaming platforms. The company plans to spin off its financial services group over the next few years.

Sony’s revenue has grown at a CAGR of 5% from fiscal 2013 to fiscal 2023. The company has streamlined operations, such as shutting down its PC business and spinning off its TV division. With uncertainties in the gaming division, Sony’s future success depends on the launch of the PS6 and expansion into cloud gaming. Financially, Sony is expected to offer special dividends during the spinoff.

Despite revenue staying flat in fiscal 2023-2026 due to the spinoff, analysts predict a 7% CAGR in EPS growth. If Sony maintains a 5% EPS CAGR from fiscal 2026-2031 and a forward P/E of 16, its stock could rise by almost 50% by 2030. Joining the trillion-dollar club seems unlikely, but Sony remains an attractive investment option in multiple sectors.



Read more at Nasdaq: Will Sony Group Be a Trillion-Dollar Stock by 2030?