Nintendo's Stock Price Jumps Higher than Mario
Posted by Thomas Whitehead
Happy shareholders spotted smoking cigars and drinking expensive brandy
Sometimes relatively obscure financial news can bring rather nice vibes for Nintendo and its fans, such as today's confirmation of a fairly meaty jump of over 7% in share price, to 10,330 Yen — roughly $110 / €85 / £73.
While it'd be nice to think that this surge in value was down to a surprise announcement so awesome that the financial markets couldn't contain themselves, the reasons are far more complicated and boring. The weakening of the Japanese Yen currency has been a positive for trading and exporting companies in the region, while solid economic and job figures in the U.S. have played a big part in the jump — 39% of Nintendo's sales are reportedly in the U.S. of A.
Other Japanese companies, including Sony, also saw stock increase as factors like these combined, though it seems that Nintendo's jump was the most significant. It shows that Nintendo's bean counters are very capable at what they do, with the most recent financial results of the company projecting an overall profit for the company of just over $150 million, despite the operations of the business — actually making and selling stuff — set to record a loss, albeit a loss lower than previous years.
Nintendo had a rough spell where a strong Yen and other factors harmed profits, so this piece of relatively good fortune arrives at the perfect time, offsetting a challenging period with some welcome cash in the bank.
In summary we can reveal that, today at least, Nintendo is not doomed.