Diamonds and Dogs
Almost everyone has used or owned a product from today's diamond, Sony Corp (SNE). Sony is jumping 17% after making a new 52 week low yesterday. The reason for the surge was better than expected earnings up over 21%. Sony gave deserved credit to its games, music, and movies divisions, and in particular to the latest James Bond film Spectre and Adele's record-smashing album 25. Its games sector also sold an increased amount of the new PlayStation 4 consoles during the quarter. Let's hope the better than expected earnings can signal a turnaround for Sony Corp.
If you have bought anything on the internet, you probably used our dog's website. Amazon.com (AMZN) a consistent diamond last year, is the dog down 8% after missing earnings 56 cents per share. Revenue rose up by 22% but the strong dollar affected results. Amazon Prime memberships continue to grow strong up 51% year over year. Amazon weakness today is simply giving up yesterdays' gains. Long term Amazon will continue to grow, but with a PE of 100 the stock is not cheap and probably will remain volatile.