Why are Sony stocks on Monday

As a company that does not depend significantly on consumer tastes and feelings, Sony (Sony -2.63%)) It is especially vulnerable to the current tariff war.

At least on Monday, it was the impression of the analyst who downgraded the recommendation for Asian Electronic Giant. Judging by their reactions, investors easily agreed when they sent the company’s shares on Monday with almost 3% losses. That autumn S & P 500 0.2% slide of indexes per day.

Target will be a problem

Before the market opened, Wolfe Research’s Peter Supino enacted a downgrade. From his point of view, Sony is now just a fellow performance (reading: hold), unlike previous performance (purchase). According to his company’s policy, he did not assign price targets to the stock price.

According to the report, the latest take of SUPINO is based on the tariffs imposed by the Trump administration. His concern is that the costs that are likely to occur in such measures combined with the decrease in consumer trust will be a business of a consumer -dependent company like Sony.

These experts added that in this country, the company has stocked a certain amount of inventory, but it still feels the impact of consumer -like weakness.

It’s not a good time for the ganggang

In many ways, Sony, the world’s best gadget company, is definitely vulnerable in the current environment. Electronics are discretionary items that are not already essential (in most cases) and tend to be affected by slumps such as coming. Unfortunately, I think Supino’s downgrade is suitable for Sony stocks.