Sony stock price takes a sudden tumble
16th Dec 2008 | 08:50
Analysts express concern at company's financial position
Sony is in dire straits right now, having recently announced plans to lay off thousands of staff and close down at least 10 per cent of its manufacturing plants in 2009.
The company's stock value has taken a turn for the worse in recent days as analysts cut ratings.
Shares in Sony dropped a whopping 5.9 per cent today as analysts dropped their earning predictions for the consumer electronics giant and downgraded its status.
Credit Suisse and Deutsche Bank analysts have expressed concern at Sony's worrying financial position.
Credit Suisse's Koya Tabata told Bloomberg: "We believe fundamental changes to its business structure are necessary.
"Compared to its peers both at home and overseas, Sony has been slow to react to the current crisis."
In response to the falling share price, Credit Suisse changed the company's rating from neutral to underperforming. Deutsche Bank also changed Sony's rating from buy to hold.
Tabata upped his estimated losses for the company from JPY 22.6billion ($251million) to JPY 150billion ($1.66billion).