Earlier this week we highlighted the impact of a global stock market panic on Nintendo's share value. After its financial reports at the start of the month Nintendo stock had stayed relatively solid, with investors holding fort while awaiting the launches of key future projects. During the course of this trading week, however, a period of significant instability in the global markets has prompting shares to tumble for a whole range of companies.
In addition to the general uncertainty, a strong Yen has made life even tougher for Japanese companies with significant export business, such as Nintendo. Now that the week has ended we have a sense of the damage done to Nintendo's share value, and it's not a pretty picture.
The value dropped a further 5.9% for the day when trading closed on 12th February, and the picture for the overall week is rather grim - that steep decline starting on Monday 8th February has resulted in a fall of around 17.4% in Nintendo share value over the course of one week. The closing price of 14,350 Yen is also the lowest it's been since 17th March 2015, which immediately preceded a steep increase upon the announcement of the DeNA partnership for smart device apps and games.
As highlighted earlier in the week, this fall has been largely out of Nintendo's control. Despite this it's unfortunately undone some positive momentum, and the company (along with many others) is no doubt hoping to see the situation stabilise soon.
And now is the time to strike folks, this is the dip you wanted if you are planning to invest (like me). I am guessing it will go a little lower, but if you manage to snag NTDOY (Nintendo's ADR) for 16, that looks quite good in my book.
If I were a share holder I would not be happy with Nintendo playing things close to their chest and the delays of games like Zelda and Starfox, I would be wondering if they were delays or early announcements with little prospect of arriving on time. That would have me questioning whether the NX will suffer the same fate.
Now's the time to announce Mother 3 for the West!!!
@DiscoGentleman I forget the exact amount, but Nintendo keeps how much stocks it has issued low, they regularly buy them back.
If you're a stockholder, you'd be happy with amiibo sales and would call for the immediate release of the LoZ amiibo series. I can't wait!
Well, seems like a good time to invest! Where can I buy Nintendo stock?
thank you. well reported.
So no pressure on the next Direct then... @[email protected]
"as Global Economic Panic Bites"
Our current socioeconomic paradigm makes things like this basically inevitable.
Fear it, because it has a far wider and deeper reaching impact than some video games company's share value dropping, and the issue is a lot closer to home than you can probably imagine.
Unless the entire paradigm is changed this kind of thing is only going to get worse, for everyone.
@CB85 Open an investing account at one of the many online services that exist, I use Capital Investing (it used to be Orange something but capital bought them out), but there are plenty out there. Just make sure you go for one not designed for day trading, you simply don't need that and will be paying fee's like crazy. For Nintendo (assuming your in the states) you will want to buy NTDOY, that is their ADR (fancy way of saying foreign stocked traded locally).
Buy it when its low (16 looks good personally), hold on to it until some big news drops, sell it. Try to do it a year later to not get bit on taxes (unless you have plenty of deductibles).
@Angelic_Lapras_King EU release date for FE Fates, anyone?
I use capital one investments
@Grumblevolcano They're gonna have to do more then date stuff. They're going to need to show big new game reveals and news on the NX, MyNintendo and Mobile games, as well as the odd surprise. If the shareholders consider it a weak Direct, those stocks are only going to fall further...
@Angelic_Lapras_King First Direct of the year generally gives some new stuff anyway. Last year was FE Fates, GIR#FE as well as the mobile-esque Pokemon and Mario games for example. My last comment was just desperation, the 3 main games I was looking forward to for Q1 were HWL, TPHD and FE Fates but last year I assumed FE Fates would release at least somewhere near the NA release.
@Warruz How much do the NTDOY stocks cost??
@Gongo at the moment? Its been hovering around $16.1 share so far this morning
@Daemonite Buy low sell high, one does not buy stocks when the company is at its peak....
I wish I can become an investor for Nintendo.
But nah...this doesn't sound incredibly bad. After all, this is happening for everyone besides Nintendo...like Banks?
Kimishima-San, I can't believe that you jumped from a bank worker to a CEO of Nintendo.
@Daemonite NX, Mobile Games, Pokemon Go, My Nintendo roll out.... just to name a few expected within a year. That is some big things from Nintendo that will surely cause investor confidence. Luckily enough, I am not the only one to think this (see investor predictions), and the stock market is all based off of perception of a company then its actual value.
@sandman89 Nah, general economic malaise is pulling all stock prices down, it's nothing specific to Nintendo...
@sandman89 The NX is revealed to be nothing more than a Nintendo Toaster.
@Warruz Correct. . .
@Daemonite I buy cause I believe in nintendo as a company... they're in it for the long run... I am too
@Daemonite In Japan, yes mobile games are big deals with investors. It is a market moving ever more towards handheld and mobile gaming. Just look at how Nintendo share prices rose after the DeNA deal last year.
Seeing as how China is now (predictably) encountering stock and property bubbles due to overgrowth, the possibility of them popping presents a more pertinent issue overall. If the Chinese economy goes into freefall, there goes the employment of many who provide cheap Chinese labor for manufacturing gaming machines. (Among many other things.) We're dangerously close to seeing an unraveling of a paradigm, Nintendo's stock drop is just a drop in the bucket, a symptom of a larger problem.
I feel we're getting a Direct within 2 weeks. If I'm wrong, then maybe after TP HD release.
You fools! Now it's time to buy many shares before it explodes due to the release of the NX!
@Daemonite yes mobile is a big deal, especially in Japan. Take a look at Square Enix's most recent report, they are killing it due in large part to their mobile offering.
Anyway, that's left of the point. The main point is by the time you know the information you, personally, would want, the stock would be much higher. Part of investing is taking risks, and I am banking that a variety of what I listed earlier will both happen and cause the stock rise based off of Nintendo previously, rumors, and other information. So its fine if you want to know all these things before investing and have a safer investment, but at that point there isn't much to be made.
@Daemonite Imagine all those people who bought Nintendo share stock back in early 2000s and got to sell them on the Wii era. What a bunch of fools.
I just have one thing to say about this article: BUY BUY BUY
Good! die nintendo. May you be barried with the nx.
For people with money, good time to buy stock in Nintendo. Assuming the warchest is as big as people claim, they'll eventually go back up... unless NX is a Virtual Reality thing, in which case sell now and hope they can survive another bad generation.
Of course you have time to buy in Nintendo stock while it's low. Don't expect a jump until the end of the year when we hopefully get Zelda, but that's not a sure thing.
I feel like Nintendo Life is paying way too much attention to short term fluctuations in stock value and trying to read way too much into it.
Nintendo shares fell because the dollar strengthened against the yen, and Nintendo was holding almost $5 billion in cash. That kind of depreciation in the yen would allow some investors to sell off.
The stock market is going down all over the world.The Dow was above 18000 last year now it around 16500 this is a ressession in the beginning.
Share price is literally the market's perception of how management does its job. Stock markets take hits all the time because a few major companies in certain places have managers that lie about performance and health of their respective companies. It isn't quite as big a deal as some might make it seem, although it does matter.
@zool - You are as predictable as a Call of Duty sequel...
NINTENDO LIFE: "As highlighted earlier in the week, this fall has been largely out of Nintendo's control."
ZOOL: It's Nintendo's fault!!!
What inspires such dedication to negativity?
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