Nintendo Share Value Drops Dramatically, Leaving Investors Baffled

Nintendo Share Value Drops Dramatically, Leaving Investors Baffled

With Nintendo Direct scheduled to launch next week, fans have been getting more and more excited about what’s to come for the Switch. Nintendo is also preparing for a presentation at the Electronic Entertainment Expo, so things should be riding high. Investors, however, don’t feel the same way.

Bloomberg reported earlier that Nintendo took a considerable hit in the Stock Market, dropping 6.3 percent Monday, with a 4 percent loss on Friday. This not only marked the largest decline in two days since late 2016, it also has been noted as the deepest discount trade on Wall Street in the past decade. Atul Goyal, analyst from Jefferies Group, weighed in on the matter:

What is shocking is that recently there has been a lot of good news related to Nintendo. Nevertheless, if chartists are giving a diametrically opposite view, we take this as an opportunity to reassess and review.”

Some believe the sudden drop in sales may be attributed, at least in part, to the fact that a leak revealed what the company planned to unveil at E3. With investors knowing what to expect for the future, they may feel disenchanted. Another issue that arose this weekend was fan feedback on the Mario Tennis Aces online demo, where some said the service was less than satisfactory. Senior Strategist at Asymmetric Advisors, Amir Advarzadeh, had this to say about Nintendo’s online service:

They’re years and years behind on the network business. That doesn’t mean they can’t catch up, but Sony spent billions on fortifying the PlayStation Network expansion.”

One final reason may be that Nintendo may have lost their “quality of life” project, with Panasonic backing out in March. While the company has plans for big ports, revitalizing franchises, and new titles, the recent setbacks may have made investors take caution, and begin to pull their money away from the Switch. Of course, Nintendo has always had ups and downs and it is possible this is just a bump in the road. E3 provides a chance for the company to tip the scales and fans are hopeful they do just that.

Are there any other factors that could have contributed to the sudden drop in share value? Join in on the conversation in the comment section below! Don’t forget to follow DFTG on Twitter for live gaming and entertainment news 24/7!

Charles Douglas734 Posts

Deep in the mountains of the south west lives a man who writes game editorials, makes YouTube Videos, and is an overall mega nerd. An avid believer in Unicorns, and your new all star line backer, Number 34, CHARLES DOUGLAAAAAAASSSS!!!!

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