Japanese tech giant Sony (NYSE:SNE) is well-known for producing a wide variety of products and gadgets of the years. Yet, Sony stock holders know full well that the company’s most important product nowadays is its world-famous, next-generation video game system — the PlayStation.
With the onset of the novel coronavirus shaking up the markets, financial commentators constantly talk about stay-at-home stocks. But, what about play-at-home stocks? This is a category worth considering, and Sony stock is a perfect fit.
Even knowing this, some folks will hesitate to buy Sony stock. Maybe they’re waiting until the holiday season starts. Or, perhaps they’re concerned because the share price has already had a decent run-up.
However, waiting and watching might not be the best strategy when it comes to Sony stock. In truth, the shares aren’t overvalued. Besides, Sony is effectively gearing up for battle with an affordable game console and a veritable army of loyal gamers.
Sony Stock at a Glance
With so many folks staying at home during the pandemic, it was almost inevitable that Sony stock would make a powerful move. Yet, first the shareholders had to endure a drawdown in March to the $51 area.
Patient, strong-stomached investors were rewarded, however, as Sony stock bottomed out and soon started to climb upwards. By Aug. 4, the stock reached its 52-week high point of $84.15.
Granted, the Sony stock price retreated after that. Interestingly, on Oct. 2 the shares closed at exactly $74. That’s not necessarily a bad thing, though. If anything, it’s a chance to accumulate shares at a more favorable price point.
Speaking of favorable prices, there’s absolutely no need to be concerned about Sony stock having a lofty valuation. Currently, the stock has a trailing 12-month price-earnings ratio of 15.3. That’s quite reasonable and suggests that the stock presents a good value, especially for a tech stock.
For Gamers, a November to Remember
If you’re an aficionado of popular gaming consoles, you’ll want to mark Nov. 12 on your calendar, if it isn’t marked already. That’s the day when Sony’s PlayStation 5 gaming console is set to be released.
Since it’s highly anticipated, you might be thinking that the newest iteration of the PlayStation would be a big-ticket item. After all, the holiday shopping season is a time when wallets and purses are typically drained on the latest and greatest must-own gaming systems.
It might surprise you, then, to discover that the standard configuration of the PlayStation 5 will carry a price tag of just $499. That’s the same as the expected price of the standard configuration of the rival Xbox Series X gaming console.
An Army of Users
Sony already started to accept pre-orders for the PlayStation 5 on Sept. 16, and the initial supply sold out quickly. So clearly, the demand for Sony’s powerful gaming consoles remains strong. Competitive pricing during these challenging economic times is a likely contributing factor.
How many PlayStation 5 will Sony end up selling? No one knows for sure, but it’s worth noting that the company sold a jaw-dropping 112 million units of its PlayStation 4 gaming consoles.
Furthermore, prospective investors might be interested to know that the full PlayStation network has 113 million users. That’s a mind-blowing number, and it’s bigger than the user base of Xbox Live players.
And here’s another shocker for you. By the end of April, Sony’s PlayStation Now, the company’s game streaming service, had 2.2 million subscribers. Also, the Sony user army isn’t limited to console users since PlayStation games can be played on a personal computer.
The Takeaway on Sony Stock
You can partake of the play-at-home trend today with a long position in Sony stock. Indeed, you can play to win with Sony shares as the company features affordably priced next-gen gaming consoles and a user base that’s vast and loyal.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation.
