Market Overview

Analysts React To Nintendo's Worst Daily Performance Since 1990

Analysts React To Nintendo's Worst Daily Performance Since 1990

Shares of Tokyo-listed Nintendo Co., Ltd (OTC: NTDOY) plunged 18 percent on Monday, the most its fallen since 1990, after stunning investors with a statement that the wildly-successful Pokemon Go mobile game will have a limited impact on its earnings.

Bloomberg, citing Macquarie Securities' analyst David Gibson, reported that Nintendo's effective economic stake in the mobile game is a mere 13 percent. This may also explain why Nintendo's stock fell the maximum daily amount allowed on the Tokyo exchange and wiped out 708 billion yen ($6.7 billion) in Nintendo's market value.

Related Link: Nintendo Crashes After Company Admits Pokémon GO Has Limited Impact

Tomoaki Kawasaki, an analyst at Iwai Cosmo Securities, was also quoted by Bloomberg as stating that Nintendo's stock is still "overheated" in the short-term.

Nobuyuki Fujimoto, a senior market analyst at SBI Securities Co, also shared a similar sentiment with Bloomberg. He pointed out that the announcement itself isn't necessarily "shocking" but it is a "surprise" the press release was issued on Friday rather than when the company reports earnings on Wednesday.

Fujimoto added that since the Pokemon Go mobile game was officially launched in Japan, the company has effectively "exhausted all the catalysts."

The next potential catalyst, the expansion of Pokemon Go to China, remains an uncertainty. The mobile game requires use of geographical data but this is restricted by the Chinese government.

Investors are also anxiously awaiting Nintendo's announcement on future mobile games and the next generation console which is expected to be released next year.

Posted-In: David Gibson Nintendo Nintendo Stock Nouyuki Fujimoto Pokemon GoAnalyst Color Tech Media Best of Benzinga


Related Articles (NTDOY)

View Comments and Join the Discussion!

Latest Ratings

View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Dispelling The Myths: Donald Trump And Bankruptcy

With Positive Fundamentals And Solid Earnings, Argus Sees D.R. Horton Shares As Undervalued