Sony shares rally 10% as $1.6 bln buyback offsets weak earnings

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Sony shares rally 10% as $1.6 bln buyback offsets weak earnings

) rose sharply on Wednesday after it announced a massive stock buyback and a stock split, which offset weak annual earnings and middling guidance.

Sony said it will buy back 250 billion yen worth of shares, and also conduct a five-for-one stock split. But Sony’s earnings were also hit by growing weakness in the gaming sector, amid a broader decline in the industry. Videogames make up about a quarter of Sony’s overall revenue, with the Playstation 5 now expected to see sluggish sales as it enters its fourth year of production.

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