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Forums - Nintendo Discussion - Nintendo Shares Plunge 17% After Saying Pokemon Go’s Impact Is Limited

daredevil.shark on 24 July 2016

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.

 

 

Source: http://www.bloomberg.com/news/articles/2016-07-25/nintendo-set-to-plunge-after-saying-pokemon-go-s-impact-limited



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barneystinson69 on 24 July 2016
daredevil.shark said:

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.

 

 

Source: http://www.bloomberg.com/news/articles/2016-07-25/nintendo-set-to-plunge-after-saying-pokemon-go-s-impact-limited

Not surprising at all. One mobile game cannot sustain 20 billion dollars in market value, the bubble was bound to pop.



Made a bet with LipeJJ and HylianYoshi that the XB1 will reach 30 million before Wii U reaches 15 million. Loser has to get avatar picked by winner for 6 months (or if I lose, either 6 months avatar control for both Lipe and Hylian, or my patrick avatar comes back forever).

Jizz_Beard_thePirate on 25 July 2016

Makes sense. It was being over hyped and what not so its better to let it go down now rather than later where the drop would be even more massive.



                  

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hershel_layton on 25 July 2016

Well, duh. It's quite obvious.

I'd rather have the stocks slowly level back than to experience a huge pop.



 

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12/22/2016- Made a bet with Ganoncrotch that the first 6 months of 2017 will be worse than 2016. A poll will be made to determine the winner. Loser has to take a picture of them imitating their profile picture.

vivster on 25 July 2016

No matter that statement the shares would've gone down eventually in the following months since they were inflated anyway.



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Kerotan on 25 July 2016

It makes sense really



pokoko on 25 July 2016

Lots of people investing without doing their homework. This was inevitable. As I said elsewhere, what Nintendo can do with their own IP on mobile will be a bigger deal for them, one way or the other.



mountaindewslave on 25 July 2016

its actually kind of a good thing, it dropped because of Nintendo basically blatantly havign to repeatedly explain that they are not getting the majority of revenue from the game. 

Nintendo just bringing people back down to Earth like they always do. they could have BS-ed and made it appear to investors that Pok Go was more of an effect on them than it is but they're straight shooters



Culipechi on 25 July 2016

"Nintendo should go full mobile"



thismeintiel on 25 July 2016

Definitely saw this happening after investors realized Pokémon does not equal Nintendo. Sure they own part of the company, but that just means you won't see the Pokémon series on anything besides Nintendo consoles and mobile. Doesn't mean Nintendo is raking in most of the cash when the games do well.