Last week we covered the ups and downs - oh alright, the weird downs - of Nintendo's share value in the Japanese market. After holding reassuringly steady following the company's Q3 financial results, a week of turmoil in the global market contributed to a painful 17% drop in Nintendo's shares over the course of just five business days. The most bizarre aspect was that Nintendo had little to no control over the decline, as broader issues around the Yen and worldwide economy took charge.
It's with curiosity we took a look again today, as the Nikkei average - the Japanese stock market to which Nintendo is tied - enjoyed a boost of over 7% when trading closed on 15th February, driven by expectations around actions by the Japanese government to assist with challenges related to the Yen currency. As our tagline says - more money madness.
Nintendo has benefitted, too, with a climb above that Nikkei average - its share value gained 9.76% in just one day, climbing to 15,750 Yen in the process.
It'll be something to look at again at the end of the week, and based on recent events the outcome is far from clear. It's striking how powerful external factors are in determining Nintendo's company value, though its planned moves in smart device apps and the NX do - at least - hold enough investor confidence to keep the numbers relatively high.
Comments 13
This looks more like an unstable market at the moment.
I'll say it again. I don't get the point of these articles. They seem like click bait to me. I'm not on "Stock Market Life", am I ?
I didn't post on the negative stock market articles so I wouldn't sound like a troll or defending Nintendo's honor or something like that. I'd like to see articles about games.
There wasn't even an article for the tiny bit of news for the Monster Tale Ultimate port we're getting.
okay.........umm, I think I'm starting to not get this whole stock thing.....
I kinda figured (or at least hoped) the Japanese government would at least try to find a solution. You kinda don't want your currency to go down and bring the whole country down with it.
From my experience (which is a required class in economics back in high school) the stock market seems to be mostly based on emotions and when people fear they will lose money in any form they will try to get back the money before it drops further without thinking of the big picture. Again though I have like the most minimum of experience for this issue so I'm not the right person to talk about this.
@ikki5 Definitely looks like it. Most places around the world are a unstable at the moment too. We'll have to see what happens soon.
I think this speaks more to the overall world economic and market instability than the instability of Nintendo's company value.
@Mineral Same. It does seem like click bait. If it was directly related to something Nintendo had reported / results etc., I could see a reason for this type of article......but this!!??
As far as I can tell, the rest of the world is worrying where it's next paycheck is coming, and are not buying as many high price items like electronics, so Japanese banks are worrying about lending to companies like Nintendo. Cashflow is a big issue for Nintendo (no matter how much money they've got squirrelled away in other ventures that isn't so easy to get at), so if they can't get the money to pay their suppliers and staff and rents, they are in danger of not being able to make more stuff- or at least scale back on what they're doing. By the Japanese government saying 'we'll make sure money is available to companies', it means Ninty and all the other manufacturers can keep chugging along, which calms investors anxieties. It doesn't solve the problem of fears of an economic slump, but it may steady the waters for long enough for the situation to improve.
The big worry I guess for Nintendo is about releasing a new piece of tech (or maybe two parts of tech?) with a high pricetag in a market where there were less iphones, PS4's and XB1's sold in 2015 as opposed to 2014, and 'new' technology like 4K tv and Smart watches have not sold like they were supposed to.
The story is news worthy, if not really about Nintendo content but it could impact the NX. Plus, there isn't a great deal of Nintendo news out there and Nintendolife has to post something for us to read. I always find the term 'clickbait' stupid because the headline explains what the story is about, and you don't have to click on it- and even if you do, what does that really cost you? Oh no, I have to see an Amazon ad or something at the top of the page I see everywhere else on the internet-my life is detroyed.
Despite the protestations of others I applaud the site for delivering this sort of news. I'm sure it would seem relevant if Nintendo stock continued to slide, as this could directly affect their future as a gaming provider.
So in other words: Business as usual in stock markets. Up. Down. Up. Down. Up. Down.
I can't take this serious...
Never count Nintendo out. The Big N will hit a grand slam home run four months from now.
I hate shares.
It's only going to get worse as this week goes on.
China had horrible economic numbers over the weekend.
Chinese stock market are all very unstable.
Chinese banks aren't financially secure.
Chinese economy is tanking faster than the government knows what to do about it.
Chinese and foreigners as they pulling their money out of China putting it into Western institutions.
China is literally spending $100 Billion+ American a month (that's over $1.2 Trillion a year) just to stop their currency from fluctuating against the U.S. Dollar.
China is rapidly depleting it's foreign currency reserves to keep their economy from entering into negative growth (it's over due).
Japan economy shrunk even further according to yesterday's numbers.
The U.S economy slowed to 0.7% growth in the last quarter of 2015 as of last weeks numbers.
This means the U.S. is very close to dipping into a recession.
There is going to be a wild ride this week, so everyone buckle in.
Tap here to load 13 comments
Leave A Comment
Hold on there, you need to login to post a comment...