Here’s what you should know to start the day:
Sony Writes off Entertainment Business Because of Netflix
Sony ($SNE) is taking a “goodwill-impairment charge” of $962 million with its entertainment business because the company is struggling to keep up and understand the way people consume media. Everything from the decrease in home media buying to the increase in streaming video subscriptions is forcing the company to rethink their investments in movies and TV. In the meantime, they get a near-billion-dollar credit. Head over to Quartz to make sense of this tax move.
The Biggest Earnings Day of the Year…So Far
Sprint ($S) added more subscribers than they expected, which is why their stock is currently trading 2.41% higher before the markets open. ExxonMobil ($XOM) missed their earnings projections and wrote off their Rocky Mountain gas assets for $2 billion. Their stock is up by .2% as of this writing. MasterCard ($MA) beat projections due to higher consumer spending, yet analysts are still concerned about the company’s future performance (which is why their stock is down). Pfizer ($PFE) missed their profit forecasts as generics are taking a chunk out of the company’s sales. Their stock is down .99% before trading hours.
Apple, AMD, Electronic Arts, and Match Group all announce their quarterly earnings this evening.
Fitbit to Lay off 110 Workers
Fitbit ($FIT) didn’t do so hot in their last quarter, so the company is downsizing. Fitbit will soon lay off 110 workers as it reassesses the current wearable devices market. While Fitibit also claimed that the company would enter the smartwatch market, they have to deal with the outcome of lackluster holiday sales in the meantime. Read The Verge’s report for more on these layoffs.