Sony Stock Drops Nearly 7 Percent

The electronics manufacturer is expected to lose $490 million.
4:17 | 05/14/14

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Transcript for Sony Stock Drops Nearly 7 Percent
I'm Michelle president New York as the financial markets. On this blog Wall Street this Wednesday may fourteenth this is story stock. Today a surprise from Sony corporation the international electronics giant taking a beating this afternoon on Wall Street. Explain why am joined now by land or analysts -- from Yahoo! finance -- what happened today is that investors fleeing from Sony. Sony -- investor is exactly the kind of surprised that they hate you reported that they're not only gonna have. A giant lost this year but this is when analysts were expecting a profit so they will -- are expecting to lose 490 million dollars. Investors were expecting them to make at least that much. That sent the stock down Wall Street doesn't like that. -- all kinds of doubts about -- restructuring efforts in addition and how does this for -- dean. Sort of work in when -- been on the losing streak does that all add up. It adds up to a continued sad story for an end so the problem is that yes they have been struggling for years this is this sixth. Annual loss in seventy year the said that in seven years so this is not a surprise the surprise is that this -- when analysts were expecting things and prim and turn around so. -- kind of part of a broader story of struggle and have a losing money. But whenever you're talking about the street you're talking about expectations and -- this. Far far disappoints what analysts were looking for yeah let's just take a look at -- today's stock chart it becomes a little bit of a parent of this died give us an idea what's been going on these two days. -- so it's just beneath it and talking about and it's not like -- been doing -- for the last. A year in the stock is down 15% this is -- company that -- is struggling to turn around. It's self to get rid of the parts of the business that are performing -- -- do what what the winds are tied at 88 costly processes which is what we continue to see Sony seems to have a bright spot its new gaming console the PlayStation four has been mixed success. What's not working then for Sony yeah so that's sent tanks and it's it's interesting because it yes or. Heads want the console war it was it did it was introduced at the same time as Microsoft's Xbox line. And in the last quarter of 2013 and people were. Wondering how that war was gonna plant who was going awaiting him PlayStation and PS 41 they sold seven million units -- Pretty much the beginning of April at Walt that bad Xbox won his sold by -- -- notes that it won that battle that contributed -- -- results. They also were deposited in games for their console so that -- a bright spot of the business but other parts of the business largest. Do importantly -- to be -- so that PC business they're staying off they're getting out today. But that is an expensive process and so they're gonna book a huge loss on that and in addition their TV -- factoring business is not doing well it's losing money it's been raising money for years. This is one CEO says that he's going to make profitable. But it's definitely not it's doing poorly they have a lot of competition in South Korea and in China they're not a dominant TV player. When you look at the numbers and yet they're staying with this business and if they were to get out of that the problems with getting at -- PC business that costs in the short term. Are showing that if they did decide to get added TV's that would still be a very costly process in the short term -- it. Long term that's better for the company overall and has this kind of downturn some thing that could cost the CEO his job as well. Well look you see I've seen at least one and and CIO come out today in -- press insane day hey if it is CEO Warren EU less shareholders would be calling for him to cost is job. This is the Japanese company I am not -- -- for any Japanese corporate structure but clearly. That's the highest speaking to -- the difference is saying and maybe shareholder rights and and corporate structure. Depending -- different companies but. Gap I mean that's certainly is something that. Investors and analysts are thinking about this. They see out again Lauren -- from Yahoo! finance thanks again for joining us. Thank you of course can keep up with the latest headlines right here on abcnews.com. Even watching story -- I'm Michelle Franzen in New York.

This transcript has been automatically generated and may not be 100% accurate.

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