Mon, Sep 09, 2013 | 11:16 BST
Nintendo stock drops over 8%, company absent from Nikkei 225
Nintendo’s stock has dropped more than 8%, and the company’s stock has missed out on the recent Nikkei 225 market list.
A report over on Bloomberg explains that Nintendo’s stock slump is the biggest it has suffered in two years – July 2011 to be precise – dropping 8.4% to ¥10,860 per share.
The decrease follows a stock rise of 31% earlier this year as Osaka and Tokyo’s stock exchanges merged, making Nintendo eligible for inclusion in the Nikkei 225 list. The figure anticipated positive performance from the company, but today’s list did not include Nintendo. Some industry figures had previously predicted that the company could be too big to be included, with current market evaluation at $15.4 billion, however.
CLSA analyst Jay Defibaugh changed the status of Nintendo’s stock from ‘buy to ‘sell’ today, and said of Nintendo’s absence from the Nikkei list, “The early signs of key first-party software inducing a major turnaround in Wii U console fundamentals are not promising, and the outlook for third-party support is grim. The value of iconic Nintendo franchises may be declining as younger generations discover gaming through mobile devices.”
BNP Paribas SA analyst Takao Suzuki added, “We believe Nintendo’s shares have been overvalued due to speculative demand, on the assumption that they would be included in the Nikkei. As this expectation has come to nothing, this appears to be the right time to sell.”
What do you make of Nintendo’s performance as of late? Let us know below.
Via Nintendo Life.