Nintendo’s stock price could be a game to play with

Nintendo’s stock price could be a game to play with
Nintendo’s stock price could be a game to play with
T. T.all of August over Nintendos [7974] The share price accelerated when shares last peaked in 2007. However, as September and tech stocks suffered globally, Nintendo’s stock price entered a period of volatility that resulted in a more disappointing October. However, some cops predict that Nintendo’s flagship switch gaming platform could be the industry’s next iPhone moment. What would that mean for Nintendo’s share price?
Despite the recent downtrend, Nintendo stock is up 27.2% year-to-date and an additional 72.6% from the 52-week low of JPY31,880 recorded during the market sell-off on March 13 (as of October 23) .

Blockbuster earnings

Nintendo’s share price is up 16.3% since early August. The reason for the stock’s breakout rally is the blockbuster earnings report for the first quarter of 2020 released on August 6th.

The Japanese console giant reported net sales of JPY 358 billion, up 108% from JPY 172.1 billion in the year-ago quarter. Operating income rose a staggering 427% from JPY 27.4 billion to JPY 144.7 billion year over year.

Nintendo’s sales growth was driven by the Switch segment. In the three months ended June, the company sold 5.68 million of its consoles worldwide, up 167% year over year.

According to Statista, the company has sold over 65 million Switch consoles worldwide since its launch in 2017 – a success that saw Nintendo’s share price rise.


Nintendo Switch consoles have been sold worldwide since launching in 2017

At the start of the coronavirus pandemic, Switch consoles sold out almost everywhere as customers rushed to get their hands on the console to keep them busy during the lockdown. At the same time, Nintendo had a global Switch shortage as the pandemic slowed production at the company’s assembly partner’s facility.

The game company’s best-selling title last quarter was Animal Crossing: New Horizons. In the three months to the end of June, 10.6 million copies were sold. Total revenue for the game is now over $ 22 million.

More than half of the consoles first used during the quarter were used to play Animal Crossing. For many who got involved, in-game social interaction proved to be a temporary panacea for lack of physical contact amid global lockdowns.

Nintendo tops the charts

Sales should be strong when Nintendo reports its earnings for the second quarter of 2020 on November 5. The company had the best console sales in August in the US, according to NPD Group, the industry tracking company.

Mat Piscatella, industry analyst and executive director at NPD Games, tweeted on Sept. 14th that dollar revenue from the Switch exceeded the previous record – including Nintendo – when the Wii console was sold in August 2008.

Despite robust sales, Nintendo lags behind both Sony [6758] and Microsoft [MSFT] in the console cycle. The upcoming PS5 and Xbox X series will dominate game news and will continue to do so for the next several months.

The switch is expected to receive a next generation upgrade in 2021 to stay relevant. However, an entirely new console is unlikely before 2022 or 2023. There were five or six years between the major versions of the Nintendo console between the 1990s.

While the hardware developed by Nintendo is innovative, their approach is conservative, as is their approach to business and finance in general. The company achieved half of its net profit target in the first three months of the financial year, but maintained the guidelines previously issued Financial Times.

“Your leadership isn’t even a joke anymore. It just can’t be taken seriously, ”Serkan Toto, CEO of Kantan Games Gaming Consulting Company, told the publication.

“Your leadership isn’t even a joke anymore. It just can’t be taken seriously ”- Serkan Toto, CEO of Kantan Games

This conservative approach has led a number of analysts and experts to conclude that Nintendo might be better able to invest more in building a cloud platform and extending the life of the Switch.

The apple of the game

Aaron Edelheit, CEO of Mindset Capital, argues that the company could become the Apple of Gaming. “The rating is still inexplicably low,” said Edelheit BusinessLive. “The company is innovative at a level for which nobody finds recognition.”

Another reason to focus less on hardware is that it makes more financial sense to do so. Toan Tran, Investment Manager at 10 West Advisors, believes that a new console is not a guaranteed money maker and may even struggle to match the income generated by the Switch. He argues that by building a cloud platform and updating the Switch, Nintendo can keep its user base going.

“With each generation of consoles, the installation base is reset to zero and their profitability is essentially reset to zero. Nintendo may have a continuous installation base of, say, 100 million consoles that will evolve over time, ”said Tran Bloomberg.

According to Nintendo, there are currently 22 reviews for Nintendo Market observation Dates of 17 purchases, while five suggest holding the stock. The average target price is 65,305 JPY, an increase of 16.93% from the closing price on October 22nd.

Market capitalization JPY6.6trn
PE ratio (TTM) 18.81
EPS (TTM) 2,925,7
Quarterly sales growth (compared to the previous year) 108,1%

Nintendo share price, Yahoo Finance, October 23, 2020

Disclaimer of liability Past performance is not a reliable indicator of future results.

CMC Markets is an execution service provider. The material (whether it contains opinions or not) is for general informational purposes only and does not take into account your personal circumstances or goals. Nothing in this material is (or should be considered financial), investment or other advice to be relied on. No opinion expressed in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction, or investment strategy is appropriate for any particular person.

The material was not produced in accordance with legal requirements in order to promote the independence of investment research. While we are not specifically prevented from acting prior to the provision of this material, we do not attempt to use the material prior to its distribution.

CMC Markets does not endorse or give any opinion on the trading strategies used by the author. Your trading strategies do not guarantee any return and CMC Markets is not responsible for any losses you suffer, directly or indirectly, from investing in the information contained herein.

* Tax treatment will vary by circumstances and is subject to change or change in a jurisdiction other than the UK.

Read on for FREE

Join the 40,000+ subscribers who get market moving news every week.

These were the details of the news that Nintendo’s stock price could be played on that day. We hope that we managed to give you all the details and information. To follow all of our news, you can subscribe to the notification system or one of our various systems to receive everything new.

It’s also worth noting that the original news has been posted and is available at AlKhaleej Today’s editorial team has confirmed this and it has been changed and it may have been fully retransmitted or quoted and you can read and follow this news from its main source.

These were the details of the news Nintendo’s stock price could be a game to play with for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.

It is also worth noting that the original news has been published and is available at and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.