Nintendo plummets the most since 1990 as investors awaken to Pokémon GO reality

“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.”

Read more in the full article here.

MacDailyNews Take: Oops, you invested in the wrong company!

SEE ALSO:
Pokémon GO sets new all-time Apple App Store record for most downloads in first week – July 22, 2016
Apple to rake in $3 billion from Pokémon GO over the next 2 years – July 21, 2016
Pokémon GO has a chance to change the world – July 15, 2016
Pokémon GO could be Apple Watch’s killer app – July 14, 2016
Pokémon GO helps two U.S. Marines to catch murder suspect – July 13, 2016
Pokémon GO is already the biggest U.S. mobile game ever – July 13, 2016
Ten things I wish I knew when I started playing Pokémon GO – July 12, 2016

8 Comments

  1. SO, it increased 100%, and then “plummeted” 18%.

    That means it’s still up 64% kids! And by the way, it’s back up again.

    This headline makes it sound like Nintendo is going bankrupt. Gimme a break. A bet a lot of people made a lot of money on the quick drop, though!

  2. It’s nice to see that Apple isn’t the only company who’s investors panic over rediculous news reports. The reason to invest in Ninendo is that they finally woke up and have proof that their IP can make them billions on another platform. This good for everyone.

    1. That probably depends on how wide ranged the stake is (e.g. licensing for Go related products like their wrist wearable and dedicated mini-drone so far) vs Apple’s 30% of in-app purchases.

  3. Fad \Fad\ (f[a^]d), n. [Cf. Faddle.]
    1. A hobby; freak; whim.
    [1913 Webster]

    It is your favorite fad to draw plans. –G. Eliot.
    [1913 Webster]

    2. a practise followed enthusiastically by a number of people for a limited period of time; as, the latest fad in fashion.

  4. Yes because all parents allow their children to wander about any neighborhood in large cities. Hence, the Pokemon Go revolution will stop sales on all Nintendo products. I mean you have to have shit for brains to agree with the logic of the article.

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