Shares of Sony (SONY) (JP:6758) are up in today’s trading after news emerged that the electronics company is teaming up with web3 infrastructure provider Startale to develop its own blockchain called Soneium. Web3 is considered to be the next generation of the internet and focuses on decentralization in order to give more control to users. Sony’s goal is to make web3 technology more mainstream by adding meaningful use cases and making it easier to access.
In fact, it plans to add products like Sony Music and Sony Pictures onto the platform. However, this won’t happen until the second year of the project. For now, Soneium will focus on bringing on core web3 users, as the technology and community aren’t ready for general users, according to Startale CEO Sota Watanabe. Furthermore, it will not be until the third year that the team will open Soneium to other businesses and decentralized applications.
Ultimately, Sony is looking for Soneium to become a blockchain infrastructure that will protect content rights and offer new profit-sharing models for creators.
Is SONY Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Sony stock based on five Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 12% rally in its share price over the past year, the average Sony price target of ¥17,453.55 (roughly $120) per share implies 30.54% upside potential.
