Sony Group Corporation (NYSE:SONY) is one of the best affordable tech stocks to buy right now. On February 5, Sony Group Corporation (NYSE:SONY) released its Q3 FY2025 earnings in which it reported quarterly revenue of ¥3.71 trillion ($23.68 billion). The figure is a 1% year over year growth and edges past the expected ¥3.69 trillion. Management noted that the growth was possible due to favorable foreign exchange rates and strong performance in high-margin entertainment and semiconductor segments. These offset softness in hardware sales.
Management added that operating profit jumped 22% year-over-year to ¥515 billion ($3.28 billion). This far outpaces the analyst consensus estimates of approximately ¥469 billion. And this outperformance came on the back of robust profitability in the Imaging & Sensing Solutions division, management said.
As a result, management lifted its FY2025 operating profit forecast by 8% to ¥1.54 trillion. They said the higher forecast is supported by sustained profitability across entertainment and semiconductor businesses. The company also raised its full-year revenue projection by 3% to ¥12.3 trillion while maintaining its estimated tariff impact at ¥50 billion.
Meanwhile, Bloomberg reported on January 28 that Sony Music Group, a component of Sony Group, and Singapore’s sovereign wealth fund GIC Pte Ltd had established a joint venture to acquire and manage high-quality music catalog assets across various genres. The partnership is one of the largest institutional investments into music rights to date; the investment vehicle is expected to deploy between $2 billion and $3 billion, per Bloomberg.
Under the agreement, GIC will provide long-term capital and investment expertise, said Bloomberg. On the other hand, Sony Music will contribute its operational capabilities, global distribution infrastructure, and century-plus industry experience. Sony Music will also handle the administration of acquired catalogs, including distribution to streaming platforms and licensing for films, television, advertising, and other media uses. Sony Bank Inc., a subsidiary of Sony Financial Holdings, is also participating in the investment partnership.
Sony Group Corporation (NYSE:SONY) designs, develops, and sells electronic equipment, gaming consoles, music, movies, and imaging devices. Its business segments include Electronics Products & Solutions, Game & Network Services, Music, Pictures, and Imaging & Sensing Solutions.
While we acknowledge the potential of Sony Group Corporation (NYSE:SONY) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SONY and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 10 Best Affordable Long Term Stocks to Buy According to Hedge Funds and 7 Best Used Car Stocks To Buy According to Hedge Funds.
Disclosure: None. This article is originally published at Insider Monkey.
Hedge Fund Resource Center