God knows what’s going on with Nintendo’s stock price
Yuji Nakamura, reporting for Bloomberg:
The downward pressure on Nintendo shares has sowed confusion among executives, investors and analysts. The Switch became one of the fastest-selling consoles in history after its release last year, quintupling the company’s annual operating profit. Many analysts were bewildered when shares began dropping sharply in May, leading to the biggest gap in a decade between brokerage targets and the actual stock price. [...] Nintendo shares closed at 37,540 yen Monday, down 8.9 percent for the year.
This feels like pure Wall Street shenanigans. 2018 has been slower for the Switch than 2017 only because 2017 was one of the single greatest years in Nintendo history. They launched a popular new console and released two of the highest-rated Mario and Zelda games ever made.
From a business fundamentals view, Nintendo is rock solid. The Switch has more quality games on the way (Super Smash Bros. Ultimate, Metroid Prime 4) in addition to the constant stream of ports. Games on Switch sell well, indicating a hunger for more content in addition to its growing audience.
Wall Street can do whatever it wants. Nintendo's in good shape.
