Last year, Sony Music Entertainment entered into a $250 million deal with Michael Jackson’s estate for the rights to distribute the musician’s recordings over the course of seven years. According to the Wall Street Journal, this deal will allow Sony to reap royalties from music streaming services and radio stations playing songs from the musician’s catalogue.
But this deal could take a hit as HBO is launching an explosive documentary series on MJ called ‘Leaving Neverland,’ which detail accounts of two men who accuse the singer of abusing them while they were children.
Figures from Spotify (SPOT) and Apple (AAPL) Music playing MJ’s songs in the wake of this explosive documentary are yet to be published, but in the past there have been instances where the number of streams have increased regardless of whether the news is good or bad. For example, in the wake of the documentary series ‘Surviving R. Kelly’, the R&B singer’s songs generated more than 4 million streams in the U.S. accounting for a 116% increase in the rise of streams.
But ‘Leaving Neverland’ could have a different impact. Due to the explosive nature of the documentary, major radio networks may pull Jackson’s songs from the air until public sentiment has calmed down. Radio stations in Canada and New Zealand have already decided not to play the singer’s songs unless it’s part of a news story.
Even though some may argue that nobody listens to the radio in the era of online music, one still can’t take away the charm of good old radio days. Radio still remains a big money-maker for music companies. Deloitte recently announced that it expects the global radio revenue to reach $40 billion in 2019, a 1% increase over 2018.
SONY's Aroon Indicator triggered a bullish signal on October 17, 2024. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 306 similar instances where the Aroon Indicator showed a similar pattern. In of the 306 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 8 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SONY advanced for three days, in of 326 cases, the price rose further within the following month. The odds of a continued upward trend are .
The 10-day RSI Indicator for SONY moved out of overbought territory on October 09, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 44 similar instances where the indicator moved out of overbought territory. In of the 44 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on October 09, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on SONY as a result. In of 78 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for SONY turned negative on October 14, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 52 similar instances when the indicator turned negative. In of the 52 cases the stock turned lower in the days that followed. This puts the odds of success at .
SONY moved below its 50-day moving average on October 09, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for SONY crossed bearishly below the 50-day moving average on October 22, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SONY declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
SONY broke above its upper Bollinger Band on October 08, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. SONY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SONY’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.189) is normal, around the industry mean (85.677). P/E Ratio (18.867) is within average values for comparable stocks, (47.267). SONY's Projected Growth (PEG Ratio) (4.413) is very high in comparison to the industry average of (1.869). SONY has a moderately low Dividend Yield (0.007) as compared to the industry average of (0.025). P/S Ratio (1.227) is also within normal values, averaging (74.200).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a developer of electronic equipment, consumer & industrial electronics, game consoles & related software and others
Industry ElectronicsAppliances