Nintendo Co. shares plunged after the company said late Friday that the financial impact from the worldwide hit Pokemon Go will be limited.
Shares sank 17 percent as of 10:48 a.m. in Tokyo, wiping out $6.3 billion in market value. The company cannot fall more than 18 percent today in Tokyo, as per exchange rules on the maximum a stock can move per day.
The correction comes after Pokemon Go’s release in early July almost doubled Nintendo’s shares through Friday’s close, adding $17.6 billion in market capitalization. Nintendo is a shareholder in the game’s developer Niantic Inc. and Pokemon Co., but has an "effective economic stake" of just 13 percent in the app, according to an estimate by Macquarie Securities analyst David Gibson.
In a press release after the market closed on Friday in Japan, the Kyoto-based company said the game’s financial impact will be "limited" and that it doesn’t expect to revise its annual forecast higher based on "current conditions." It also said sales of Pokemon Go Plus, a Nintendo-produced accessory for the game, have already been factored into its existing profit forecast.
“The content of the announcement itself is not that shocking, but it is a surprise they said it on Friday instead of when they report earnings” later this week, said Nobuyuki Fujimoto, a senior market analyst at SBI Securities Co. “The game has been published in Japan, so for the time being we’ve exhausted all the catalysts.”
Nintendo Slumps By Most Since 1990 on Dashed Pokemon Go Hopes
Nintendo bike
Investors just now realizing Nintendo got nothing to do with the biggest success story every affiliated with Nintendo
Shares sank 17 percent as of 10:48 a.m. in Tokyo, wiping out $6.3 billion in market value. The company cannot fall more than 18 percent today in Tokyo, as per exchange rules on the maximum a stock can move per day.
The correction comes after Pokemon Go’s release in early July almost doubled Nintendo’s shares through Friday’s close, adding $17.6 billion in market capitalization. Nintendo is a shareholder in the game’s developer Niantic Inc. and Pokemon Co., but has an "effective economic stake" of just 13 percent in the app, according to an estimate by Macquarie Securities analyst David Gibson.
In a press release after the market closed on Friday in Japan, the Kyoto-based company said the game’s financial impact will be "limited" and that it doesn’t expect to revise its annual forecast higher based on "current conditions." It also said sales of Pokemon Go Plus, a Nintendo-produced accessory for the game, have already been factored into its existing profit forecast.
“The content of the announcement itself is not that shocking, but it is a surprise they said it on Friday instead of when they report earnings” later this week, said Nobuyuki Fujimoto, a senior market analyst at SBI Securities Co. “The game has been published in Japan, so for the time being we’ve exhausted all the catalysts.”
Nintendo Slumps By Most Since 1990 on Dashed Pokemon Go Hopes
Nintendo bike
Investors just now realizing Nintendo got nothing to do with the biggest success story every affiliated with Nintendo
Just bring super Mario maker to psn
Trying to the ride the next nikkas success
