Not too long ago Nintendo unveiled some key points in its smart device strategy to investors, but in the process confirmed that its first app - Miitomo - and loyalty program 'My Nintendo' (part of a new 'Nintendo Account') would be delayed until March 2016. Both were originally expected this year, so that delay and the nature of Miitomo prompted the company's share value to take a dive. It was a drop that knocked about $4 billion off the company's valuation, which then began to level out in early November.
As our goal is to reflect on the positives as much as the negatives, we've taken a look at how Nintendo's shares have progressed in the seven days since our last post on the topic. The outcome is positive, as they've increased on every business day since 2nd November.
You can see this for yourself below, with the closing price on 9th November being 20,820 Yen, an increase of nearly 4% on the previous day.
As you can see in the results from the past year, below, two major dips in recent times have been followed by steady increases; the drop in September followed the initial appointment of Tatsumi Kimishima as company President, before recovering rather quickly.
It's another example of fluctuations in the market, but it's pleasing nevertheless to see some recovery in Nintendo's share value. As we've argued in the past, there's reason to be optimistic about what's to come in 2016, and perhaps some investors share that perspective.
[source bloomberg.com]
Comments 37
Miitomo... if its free and on Windows Store, I'll get it, but if not... forget it
Yey
It is free isn't it?
To be honest I'm surprised by the rise!! There has been NOTHING positive for ages now
Why has it gone up? Not much has happened since they announced Miitomo.
People need to have more faith in Nintendo, and I mean consumers as well as investors. What they make may not always be amazing, but it's always good. I may not like everything Nintendo's produced, but (with the exception of the Virtual Boy), it's always been good quality. I suspect Miitomo will be the same; I may not like it personally, but it'll be well-made.
@ULTRA-64 agreed
Every time Nintendo announce anything their share value drops! (Or it seems that way) it will be the same when they show off the NX same as it did with the Wii u and 3ds. Moral of the story never buy Nintendo stock before a big reveal, always buy just as stock starts to rebound and sell before a reveal.
@Soren share values are largely chaotic.
@stinky_t Windows Store lol
@stinky_t Windows phone is just lame when you have Android and IOS to deal with.
But I'm glad Nintendo somehow is making profit. And why wouldn't they? They now have Amiibo which is selling a ton!
@ElkinFencer10 you might say the same thing about sega tbh. Hasn't helped them much.
Its not all doom and gloom as much as some might say, there is a definite vacuum of positive energy right now though.....
There are groups of people who attempt to make a living by buying and selling shares of stock over the short term. One way of betting is by purchasing company stock before financials are due and then selling upon good news and a rise in the stock price. They don't want their money tied up though so if they are wrong they quickly dump the stock to move on to their next target. It artificially raises and lowers the stock price and unless a company is failing, which Nintendo financially is not, these quick plummets in stock price are pretty meaningless. Stocks are meant to be long term investments, unless you are nearing retirement there is no reason to worry about day to day or even month to month prices. And if you are nearing retirement then it means you should have less of your assets tied up in stocks because of the day to day volatility.
@ULTRA-64
Sega released the 32x and Sonic Boom. They've definitely released some crap over the years.
So, with a lack of games to buy, you're gonna review stock?
This is stupid as s***. Investors wanted Nintendo to go moblie, then once they do, they don't like it.
All these articles on Nintendo share prices are so boring. Every time a company announces something good, their shares rise for a while. When they announce something bad, their shares drop for a while. The only thing of interest is its long term price, which usually remains quite constant.
@SCAR Nintendo has hardly gone mobile yet. They've announced one app which isn't really a game. Shareholders want Nintendo to go completely mobile and only release Mario and Zelda on mobile.
@crimsontadpoles - Ya, well they're dumba$$es. Besides, Nintendo could release some good mobile that isn't Mario or Zelda. They already have Pokemon TCG on iPad and can do other stuff like that. Miitomo actually looks like a good app for mobile, because it looks like Tomadochi Life, but they were comparing it to FaceBook like idiots.
EDIT: I agree there should be more in the app(like maybe turn based mini games like Words w/ Friends or something similar), but it is still a nice little app that people can do instead of usual texting or other messaging stuff. Let's not forget that we're comparing this to crap like Flappy Bird that was basically spam and advertisers loved it.
I'm thinking most investors are smart enough to know that Miimoto won't be the only mobile app/game from Nintendo.
@Mk_II
Well, $4 billion is a pretty big drop. It really depends on how much money they are taking from the investors, but one thing for sure, is that it didn't take $4 billion to make this app, which is 100% that they are full of crap.
I wish they'd give us Europeans that free Flipnote app already.
The market always responds with a strong knee jerk reaction when companies announce products and investor related stuff.
This is why most due it after market hours.
Nintendo could announce everything gamers could possibly want and their stock would still drop in part to negative reactions online to their announcements because gamers would still be unhappy because the products wouldn't perfect in their minds.
Investors would react because it's not what they think the company should be doing.
Investment institutions and key investors that invest in gaming follow "key" gaming forums to help determine whether it is a good announcement.
They follow "key" gaming forums and sites including Eurogamer, IGN, Gamespot, NeoGaf (they carry a lot of weight), and few others.
If they see posts they don't like on these sites, it spooks them.
In consumer electronics land, the market is more fickle.
The day before Apple's last product unveiling (the one with the new Apple TV and iPads) their stock tanked by a few percent. Then on the day of the announcement the stock declined even further because they where unhappy with the event and the products announced (it didn't line up with predictions).
It took Apple's stock a week to fully recover.
Their last quarterly report from the beginning of November, Apple's stock tanked by a few percent because sales and profits weren't good enough for the market.
Apple had one of the biggest quarterly profits in history, but since it wasn't big enough to break the previous set record (which was set by them) the market was not happy.
Also they didn't sell enough iPhones either to please the market.
Apple stock is flat right now.
@SCAR I don't think a drop in share value means that Nintendo takes anything from investors. Nintendo gets a pay out from the initial sale of a share only. The investor "owns" a part of the company, may get dividends, but not always, instead relying on the increasing value of shares on the market over the long term. Investors obviously want the company to do well so that the perceived worth of their shares is increased; you can get more money for a share that is a safe bet. The $4 billion total drop in share value does not mean a loss of $4 billion for investors. Many of those investors will have bought their shares when the price was lower than the current low value; their portfolio is worth less if they want to sell right now than it was before the Miitomo announcement, but in terms of how much people have lost, it will not be $4 billion and many people will not have lost a cent in real terms. It is only the perceived value right now that is affected by drop in share value.
@Xenocity
Apple sold plenty of iPhones. The problem is that iPad sales have declined drastically year over year. In fact, iPad sales have declined quite drastically for the last 2 years, which worries a lot of shareholders who are concerned about Apple's share of the (declining) tablet market.
@ElkinFencer10 Yeah. I don't think Nintendo has ever released a game that's as bad as Sonic Boom. Yes Nintendo has delivered some stinkers, has delivered lazy efforts (putting 12 MB Mario All-Stars game on an 8 GB disc for SMB's 25th anniversary), and the Virtual Boy, but never has been to the level SEGA has settled for.
@ULTRA-64 That's how stocks work, you buy them when they're low when you're expecting them to rise. Nintendo's stock is low right now and with how long they haven't announced anything you'd expect a good announcement soon (which would cause the stock to rise).
@Xenocity gamesindustry.biz , Gamasutra, and Edge are all more professional sources than any of those sites. Those sites aren't key, they're just advertising outlets for the general public at this point; except for NeoGAF, which has gone way downhill in recent years.
These articles about Nintendo's stock are too amateurish to be taken seriously. You cannot write about Nintendo stock while being totally oblivious to how the stock market works, general trends and so on.
@Mijzelffan cheers for that reality check there
I guess we forget sometimes as enthusiasts, we lack the cold business mentality that fuels these 'behind-the-scenes' changes. They always say not to invest in something you care about for a reason, eh!
@ElkinFencer10 don't worry, I wasn't trying to say they were perfect. Just in reference to a company that did little 'wrong' but still all but faded out. Even companies like Apple which seem untouchable now financially have gone bust in the past whist churning out innovative products. Let's hope Nintendo go more the Apple route as the next gen comes in
@westman98
Actually all tablet makers are seeing a huge decline in sales year over year since 2012.
Apple is still selling more tablets than the competition even in a contracting market.
The rest are their sales decline faster an even all cell phones and PC sales are now in decline too.
@PlywoodStick
Those sites are listed as "key" because what their users and writers post, are reported on by the main press and media outlets.
NeoGaf has the luxury of having developers and analysts as members who regularly post on their forums.
These sites are used because they are believed to accurately represent gamers and consumers as whole.
Media outlets regular quote NeoGaf when writing gaming articles.
Nintendo, Sony, Microsoft, EA and others take NeoGaf into account when doing customer feedback.
NeoGaf hasn't gone down hill, they have swung extremely to the left and into Sony's arms.
Those who were center and right leaning were warned and/or banned for their values.
Those who expressed discontent with Sony and support for the rest were treated the same.
That's why mass bannings and exodus of users happened.
NeoGaf also went out of their way to crush these users on other sites.
@Boxmonkey it is always a he case. Stocks to up on rumors and then down on any news less than stellar. I'm sticking in because of Pokemon Go, I think that will be huge.
People have finally realized they massively over reacted and it makes sense that Nintendo makes an app that will link up with their new account system? You know, like the Playstation app. Or the My Xbox Live app.
@Artwark @stinky_t Actually I have been using Windows Phone since it first came out (well, rebooted) in 2010. I have Android and iOS devices all around me at our KnapNok Games office, but I'm still sticking to Windows Phone. In fact, I'm getting the Lumia 950 in a couple of weeks.
Why Windows Phone? Well... because I like the way it works and its aesthetics over anything Android or iPhone can offer me. That, and the camera. You can hardly ever go wrong with the camera of a Lumia phone
That said, I know I'm the minority
@Sakuri
I meant when they were invested. Everything you just said to me meant nothing. No offense.
@Anchel that pretty much sums up my opinion as well!
The app looks rubbish. Why can't we have a brilliant new puzzle game, with loads of character and charm?
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