News Article

Nintendo Stock Rises By 11%

Posted by Andy Green

The largest increase since 2008

The Japanese yen has reached a three-year low against the euro meaning many successful exporters are enjoying a rise in stock.

Nintendo has seen an 11% rise in stock value, which now stands at 11,850 yen, the largest gain since 2008.

The yen has weakened against all 16 major counterparts this year as speculation surrounding the Bank of Japan’s prospective quantitative easing initiatives continue.

The Topix advanced 1.7% today to close at 1,121.04 in Tokyo, with around two stocks rising for each that fell.

Nintendo relies on Europe for a third of its sales and the weak yen is allowing it to prosper, at least for now. Things could soon change as the central bank is set to make its next policy announcement on 26th April.

The Japanese games market recently returned to growth, so the future is also looking bright on domestic soil too.

What are your thoughts on Nintendo's financial situation? Let us know in the comments section below.

[via businessweek.com, gonintendo.com]

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User Comments (40)

TysonOfTime

#1

TysonOfTime said:

Why? I'm curious, but then again, I'm clueless when it comes to the subject, so for all I know this stuff can happen at random.

ninja89

#5

ninja89 said:

@TysonOfTime

My guess is that sometimes it is random. When the PS4 was announced, Sony's stock actually went down while Nintendo's went up. That doesn't make any sense to me, than again, I'm not an economist..

Burning_Spear

#7

Burning_Spear said:

This seemingly has little to do with business other than the fact that Nintendo has a lot of export-based revenue. In other words, it can't be construed that the company is doing better; only that the export climate is better.

ramstrong

#8

ramstrong said:

We need more games. And cheaper price. Bundles are the way to go. I already have 3DSXL, but when I see that Pikachu bundle, I was tempted to donate my Mario XL to a family member just so I have an excuse to have a Pikachu in my pocket. :)

Peach64

#11

Peach64 said:

As @Burning_Spear said, this is purely down to exchange rates.

It's like right now, a pound is worth about 1.5 dollars. It was like this back in the early 2000s, and then suddenly the dollar plummeted in value. You could suddenly get over 2 dollars for 1 pound. The prices of items in each country had not changed, but it was suddenly way cheaper for people in the UK to buy things from the US.

Nintendo is making the same money it was months ago, but now that money is 'worth more' than it was months ago, in Japan.

mookysam

#15

mookysam said:

The strong yen has been the single biggest challenge for Japanese companies that rely on foreign sales for much of their revenue. Nintendo themselves highlighted it as a key reason for their huge losses last year, and I reckon it is partly why the Wii U was priced so highly in Europe. Perhaps if the yen weakens further it will increase the chances of a price drop...

ULTRA-64

#18

ULTRA-64 said:

Sucks for Sony cash wise lately so this is good. Nintendo actually have way more money than Sony, so strange they don't cone under the same media pressure of collapse if the ps4 fails?

Ryno

#20

Ryno said:

I wonder if the Japanese people are excited about their purchasing power declining?

XCWarrior

#21

XCWarrior said:

Everything's fine.

How about Nintendo Life be a better gaming website than everyone else and STOP POSTING MICHAEL PACHTER COMMENTS!

theblackdragonAdmin

#25

theblackdragon said:

@Chriiis: it depends on whether or not he was referring to the staff or the userbase, then, i guess. it's easy to take it either way :3

Jukilum

#29

Jukilum said:

@ULTRA-64 Video Games aren't Sony's only source of income. They also have a large line of televisions, publish music, they have a movie studio, etc. They have a lot to fall back on.

@ninja89 A possibility for that occurance is that investors were unimpressed by the PS4 and concluded that Nintendo was a better investment. I have no idea if it's true, but it's a possibility.

Investors seem to be, as a whole, a fickle bunch. For example, after Apple reported record sales for the iPhone 5 their share price dropped signifigantly because despite record profits, they did not sell as many iPhone 5s as analysts predicted.

e6666

#30

e6666 said:

@God, Nintendo, Stock Market. Amen.

@Jukilum Yes, but their other departments sometimes do even worse. More stuff means more liability and they are not worth more than Nintendo because of losses and liabilities across the Board, as compared to Nintendo who has a consolidated more restrained business.

MadAdam81

#31

MadAdam81 said:

It's cheaper to buy stuff from Japan because the value of their currency went down, therefore more people bought Nintendo stuff from Japan. Of course that would only be part of the story, as investors must be convinced that Nintendo's fortunes will continue to increase.

MAB

#32

MAB said:

Nintendos stocks will rise even more as the end of the year draws closer and those games start releasing... All the BS doom n gloom will be remembered as a huge waste of time for the users that posted massive multiple walls of text about try hard business nothings ;)

datamonkey

#33

datamonkey said:

While this is good news it has no bearing on Nintendo's performance and is simply a result of the yen weakening.

This therefore benefits all Japanese companies with high exports, not just Nintendo.

It would have been more impressive if the stock rose 11% on the back of strong company performance.

Lizzylues

#34

Lizzylues said:

Nintendo is a game where you can play by your self, or with your friends, but you can also chat with them, too.

BossBattles

#35

BossBattles said:

So Pachter please keep your analyzing to yourself.. You are not an analyst. You are a paid troll. Go away.

All websites should stop talking to that freak.

Robo-goose

#36

Robo-goose said:

@jp1989

My first thoughts while reading this article were, "I need to invest" and, "I need something that teaches me how to invest."
I'm asking the same question as you now, ha!

Mortenb

#40

Mortenb said:

Basically this "quantative easing" amounts to lowering the salaries of every Japanese worker and taking their savings, and giving the value to Nintendo (and other export companies) stock holders and European gamers. Lowering wages in Japan is of course necessary, but doing it through inflation and political means in stead of letting each company do it on their own if necessary is the biggest sillyness of this age.

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