Buy Sony Shares: Everything You Should Know
The Sony brand is known all over the world and is synonymous with Japanese quality. Given the growth of the stock, is buying Sony shares a profitable investment? Or is there to expect a turnaround?
By reading our guide you will be able to examine in detail the potential of this asset, considering any risks associated with the investment.
We will also show you the steps required to invest in security, which we can summarize in 3 steps:
- Choose a CFD Broker that offers a safe and intuitive platform.
- Practice on the Demo account without risks.
- Make a small deposit to invest on the real market.
OnlineTradingCourse.net has selected the best platforms where to buy Sony shares without paying commissions, one of which is offered by eToro, which also offers a patented automatic investment system.
Min. Deposit: 200€
Min. Deposit: 400€
Min. Deposit: 10€
Min. Deposit: 100€
Min. Deposit: 100€
Min. Deposit: 250€
Min. Deposit: 250€
Min. Deposit: 250€
- 1 Sony Shares: Listing and price in real time
- 2 Sony: History
- 3 How to buy Sony shares
- 4 Where to buy Sony shares
- 5 Sony business model
- 6 Is buying Sony shares worth it?
- 7 Sony’s competitors
- 8 Sony shares forecast
- 9 Sony Shares Target price
- 10 Conclusions
The company Sony is a universally known brand that was born in 1946 in Tokyo, Japan.
This Japanese multinational is one of the largest producers of consumer and professional electronics in the world.
Its fame starts from the video game consoles; here the company is the market leader. It also successfully deals with the production of videogames, movies, music and much more.
At the technological level, Sony manufactures 50% of the image sensors for digital cameras and is a leader in the sale of semiconductors.
Sony stock is listed on the Tokyo Stock Exchange and also on the Nikkei and Topix, two of Japan’s most important stock indices.
The company has had a second listing on the New York Stock Exchange since 1970. This makes Sony the oldest Japanese company listed on a US stock exchange.
The double quotation can complicate things, but the two prices travel in parallel. The differences depend only on the dollar / yen exchange rate.
To make things easier, we will deal with the dollar-priced stock on the NYSE.
To buy Sony shares you need a good CFD broker, a PC and an internet connection.
The requirements that identify a reliable CFD Broker are:
- It must offer CFDs, contracts for difference, that allow you to invest both up and down (short selling).
- You don’t have to pay commissions.
- It must have the authorization of at least one supervisory body such as FCA or CySEC.
To buy Sony shares (or sell them) on one of the trading platforms offered by these online brokers you need to:
- Buy the Sony CFDs to earn money if the shares go up.
- Sell the Sony CFDs to earn money if the shares go down.
When the stock reaches the desired price, you can close the transaction and collect any net profits, without paying commissions.
Selecting which broker to use can be complicated.
The best way would be to evaluate the best trading platforms on the market and the services offered and make a comparison.
But if you don’t have the time to do that, you can rely on our tests.
OnlineTradingCourse.net has carried out numerous detailed evaluations and was able to conclude that the best CFD brokers where to buy Sony shares safely are: eToro, ForexTB and Trade.com.
The final choice is still up to you: Register, try their respective Demo accounts, and choose the platform that best suits your trading style.
eToro, with its community of over 7 million active traders, is the leader of the market.
The security of this intermediary also derives from its numerous licenses, such as that of FCA.
The most interesting feature of eToro is its platform, which is fast and intuitive like few others.
To buy Sony shares (or sell them), you have to click on “Invest”, decide whether to Buy or Sell the stock, and how much to invest in the operation.
Its fame comes not only from the intuitive platform but also from a revolutionary patent called Copy Trading.
This system allows you to copy the market transactions of the best investors in the world (chosen directly on eToro), in a fully automated manner and at no additional cost.
To use Copy Trading you have to follow these steps:
- Register on eToro
- In the section “people”, you can choose the traders to copy based on the performance.
- With a click, Copy Trading will copy exactly the same operations of the chosen traders in your account.
- At this point, you will get the same returns as these trading experts (of course, in proportion to your investment), without doing anything else.
Here are some of the best eToro Traders (which can be copied):
Both Copy Trading as well as traditional trading can also be tested on a free Demo account, without taking real risks.
For more details you can read our full eToro review.
ForexTB has achieved its current popularity thanks to a series of completely free services.
Clearly, this broker is also absolutely safe and can boast the authorization of the prestigious CySEC, valid throughout Europe and the UK.
ForexTB allows you to choose between 2 trading platforms, both free:
- The web platform is easy to use and can be entered from any browser without downloading any software.
- Metatrader 4 is more technical and full of professional indicators and meets the needs of the more experienced traders.
To buy Sony shares (or sell them) simply click on Sell or Buy and decide how much money to invest in the operation.
ForexTB’s famous trading support is based on the Free Trading Signals which are sent to all investors. These indications are very precise and are successful 70% of the time, an excellent support for online trading.
ForexTB tries to help above all novice traders and for this reason, it has created for free a Trading Course considered among the best in its category. This ebook summarizes the basics of online trading and allows you to learn technical analysis in a simple way and with practical examples.
Trade.com: Buy Sony stock with 100€ deposit
Trade.com notoriety has spread incredibly thanks to its very professional platform and to the entry threshold.
The minimum deposit required by Trade.com to open a real account is in fact only 100 Euros, much lower than the average on the market.
The security of this intermediary is guaranteed by FCA.
In the screenshot below, you can see the Sony CFDs:
To buy (or sell) Sony shares, just click on Buy or Sell and decide how much to invest.
Trade.com relies heavily on training, which is necessary to improve the performance of its users. The notions of technical analysis are the basis of a good profit in trading and this Broker has created a very complete trading course, a pdf that can be downloaded for free using the link below:
To open a real account with Trade.com you need at least 100 Euros, an amount lower than the average. However, to get started there is always the totally free and unlimited Demo account.
Sony business model
Sony’s business model is based on a very diverse conglomerate of sectors.
The main divisions are: Gaming and Networking Services, Music, Imaging, Film Productions, Electronics Products and Solutions, Imaging and Sensing Solutions, Financial Services, Other Services.
The most important data regarding this Japanese multinational are:
- Listing: TYO (675), NYSE (SNE), Nikkei 225 component and TOPIX Core30
- Foundation: 1946
- Founders: Akio Morita, Masaru Ibuka
- Headquarters: Sony City, Minato, Tokyo, Japan
- Revenue: ¥ 894.2 billion (2019)
- Net profit: ¥ 916.2 billion (2019)
- Employees: 114,400 (2019)
Investors consider Sony to be one of the best stocks in the video games and gaming console industry, given the history of the Sony PlayStation.
However, this Japanese conglomerate is much more. In fact, for the fiscal year 2019, the “gaming” sector accounted for 24% of total sales and 28% of total operating profit.
Below, we can admire the historical performance of the Sony stock over the last 5 years:
The growth trend shows a certain constancy and the global pandemic that broke out in March 2020 slowed the rise of the stock for only a few months.
Buying Sony shares is worthwhile because, according to leading market analysts, the share price is rising, the company’s fundamentals are solid, and the future prospects are very positive.
Sony is quickly adapting to changes in the video game industry as well. The new PlayStation 5 is not limited to improved graphics and greater processing capacity, but points to subscription services and the cloud, which are the real goldmine of the company.
To understand it better, just think that in June 2020, Sony had 113 million monthly active users on the PlayStation network. Of these, 45 million were PlayStation Plus subscribers, a service needed to play multiplayer online and get a host of additional services and free games.
The main Sony’s competitors come from the video game and console sector but not only, here are the main ones:
- Electronic Arts
Sony has aimed at the network in advance, but it is only recently that it has managed to successfully monetize the services offered.
The PlayStation Plus service we mentioned, has brought a revolution in the generation of the company’s profits, because it generates stability and allows for much more precise predictions about the future.
Given the company’s investments to expand the streaming capabilities of the new console, such as cloud gaming, it is obvious that Sony is focusing on services and subscriptions like never before.
The stock has a price / earnings ratio of 15.9 so, according to analysts, it is “underestimated”.
One reason for Sony’s modest valuation is the extreme branching of its business sectors.
But now that the company is trying to improve the consistency of returns (with subscriptions) and to optimize production processes, the share price is expected to rise in the coming months.
We have collected the analyzes of some of the most important world investment banks to offer an overview of the Sony stock:
- Oppenheimer reiterated a “buy” rating and set a target price of $ 100.00 on Sony stock.
- ValuEngine cut Sony from a “pending” rating to a “sell” rating.
- Citigroup reiterated a “buy” rating on Sony shares.
- Goldman Sachs has issued a “buy” valuation for the company.
- UBS Group cut Sony from a “buy” rating to a “neutral” rating.
Buying Sony stock is seen as a great investment, but you need to have a long-term view to make a noteworthy profit.
Analysts from major international merchant banks have released positive ratings for Sony.
Their twelve-month average target price is $ 96.00, predicting a rise of 28.69% within one year.
Buying Sony shares looks like a very attractive investment for the foreseeable future.
We looked at the company’s progress, stock performance, and the future of Sony’s leading industries. The major international analysts are optimistic about this stock, but the most substantial profits will come for medium / long-term investments.
Newbies to online trading should practice on the Demo account before investing money. After familiarizing yourself with the chosen platform, you can make the minimum deposit required by the Broker and seriously invest in the market.
Here are the official links to access the Demo accounts of the best online brokers:
- Practice the eToro Demo account for free by clicking here
- Register for free on ForexTB and access the Demo account from this link
- Access the Trade.com Demo account for free from this link
Yes, leading analysts believe Sony shares is an excellent long-term investment.
CFD brokers allow you to safely buy Sony shares, directly online.
The 12-month target price for the Sony stock is $ 96 per share.
Yes, with eToro you can invest in Sony with CFDs, without paying commissions.