The Sony Group reached a new record high with a closing price of 3,338 yen on Tuesday. The Japanese entertainment company benefited from rising expectations for its gaming and entertainment segments, which now account for almost 60% of total sales. This surpassed the previous peak from the dot-com bubble in 2000.
The stock saw a significant increase in recent weeks after Sony presented strong quarterly results for the three months through September. Net profit rose by 69% to 338.5 billion yen (2.24 billion USD), particularly driven by growth in the gaming segment. The division's operating profit doubled thanks to higher revenues from software, network services, and improved hardware profitability.
Macquarie raised the operating profit forecast for Sony's fiscal year 2025 in a report on Tuesday. The positive assessment is based on higher contributions from Sony-developed games and continued success in the entertainment sector. In recent years, Sony has invested billions in acquisitions to strengthen the production of entertainment content.
To sharpen the focus on the entertainment sectors, Sony plans to spin off and IPO its insurance and online banking business in 2025. This strategic maneuver is intended to further strengthen the core areas of games, music, and movies.
Last month, Sony raised its sales forecast for the fiscal year ending March 2025, supported by expected gains in the gaming segment. During trading on Tuesday, the stock reached its daily high at 3,343 yen.
