“Nintendo Co. shares plunged by the most since 1990 after the company said late Friday that the financial benefits from the worldwide hit Pokemon Go will be limited,” Yuji Nakamura and Takashi Amano report for Bloomberg. “The stock sank 18 percent to 23,220 yen at the close in Tokyo, the maximum one-day move allowed by the exchange, wiping out 708 billion yen ($6.7 billion) in market value.”
“The correction comes after Pokemon Go’s release almost doubled Nintendo’s stock through Friday’s close, adding $17.6 billion in market capitalization,” Nakamura and Amano report. “Nintendo is a shareholder in the game’s developer Niantic Inc. and Pokemon Co., but has an ‘effective economic stake’ of just 13 percent in the app, according to an estimate by Macquarie Securities analyst David Gibson.”
“In a press release after the market closed on Friday in Japan, the Kyoto-based company said the game’s financial impact will be ‘limited’ and that it is not necessary to revise its annual forecast even after factoring in current conditions,” Nakamura and Amano report. “It also said revenue from Pokemon Go Plus, a Nintendo-produced accessory for the game expected to go on sale soon, has already been factored into the current guidance.”
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MacDailyNews Take: Oops, you invested in the wrong company!
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