By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Nintendo Discussion - Nintendo's Stock: Values Keep Rising

Oh shit! This is why Nintendo should have not went third party!! LMAO!



Pocky Lover Boy! 

Around the Network

Nintendo stock is overvalued ?

In 2016 wasnt there a thread about how Sony had made more money from "ps plus" than the entirety of Nintendo did that year?

 

http://www.eurogamer.net/articles/2016-04-28-sonys-psn-is-making-more-money-than-all-of-nintendo

 

"During the financial year ending 31st March 2016, Sony's PlayStation Network generated 529.1bn yen in sales.

During the same financial year, the whole of Nintendo pulled in 504.4bn yen in sales.

In terms of operating income, or profit, PlayStation made 88.7bn yen (£538m). Nintendo made 32.8bn yen (£207m)."

 

If sony makes much more revnue & profit than nintendo, why is nintendo stock almost as high? 

Stock markets dont make sense to me at all.



TheBraveGallade said:
Mnementh said:

I agree with this. Sony has it's hand on so much more businesses, so that alone ensures Sony is the more viable option to own.

.... exept for the fact that aftet the mid 2000's, most of sony's subdivisions has crashed and burned, only leaving thier bank, camera, movie, and gaming divisions a profit, so most of it is a negative to sony.

 

as for china, they are literally the only console compay that has actual reach in china due to Ique being a thing.

Sorry, one factory that works at a pürofit or 20 factories of which some do profit, some currently not. Which is more valuable?



3DS-FC: 4511-1768-7903 (Mii-Name: Mnementh), Nintendo-Network-ID: Mnementh, Switch: SW-7706-3819-9381 (Mnementh)

my greatest games: 2017, 2018, 2019, 2020, 2021, 2022, 2023

10 years greatest game event!

bets: [peak year] [+], [1], [2], [3], [4]

JRPGfan said:

Nintendo stock is overvalued ?

In 2016 wasnt there a thread about how Sony had made more money from "ps plus" than the entirety of Nintendo did that year?

 

http://www.eurogamer.net/articles/2016-04-28-sonys-psn-is-making-more-money-than-all-of-nintendo

 

"During the financial year ending 31st March 2016, Sony's PlayStation Network generated 529.1bn yen in sales.

During the same financial year, the whole of Nintendo pulled in 504.4bn yen in sales.

In terms of operating income, or profit, PlayStation made 88.7bn yen (£538m). Nintendo made 32.8bn yen (£207m)."

 

If sony makes much more revnue & profit than nintendo, why is nintendo stock almost as high? 

Stock markets dont make sense to me at all.

Higher profit for the value, but still, stock market is insane.

To the bolded: Maybe investors like the idea that Nintendo soon will have their own paid network.



3DS-FC: 4511-1768-7903 (Mii-Name: Mnementh), Nintendo-Network-ID: Mnementh, Switch: SW-7706-3819-9381 (Mnementh)

my greatest games: 2017, 2018, 2019, 2020, 2021, 2022, 2023

10 years greatest game event!

bets: [peak year] [+], [1], [2], [3], [4]

JRPGfan said:

Nintendo stock is overvalued ?

In 2016 wasnt there a thread about how Sony had made more money from "ps plus" than the entirety of Nintendo did that year?

 

http://www.eurogamer.net/articles/2016-04-28-sonys-psn-is-making-more-money-than-all-of-nintendo

 

"During the financial year ending 31st March 2016, Sony's PlayStation Network generated 529.1bn yen in sales.

During the same financial year, the whole of Nintendo pulled in 504.4bn yen in sales.

In terms of operating income, or profit, PlayStation made 88.7bn yen (£538m). Nintendo made 32.8bn yen (£207m)."

 

If sony makes much more revnue & profit than nintendo, why is nintendo stock almost as high? 

Stock markets dont make sense to me at all.

Stock markets move on speculation for future value, last years profits mean nothing for the present and the future, how an investor sees Nintendo now is that they have a new product out that is selling well and will be on the market for 6-7 years, 3DS is still selling, the are still more mobile games to come with the Animal Crossing entry and an online subscription service is launching soon.

Investors want to get on board now so they can make money on the speculated value, as more and more investors jump on the stock the price of it rises.



Around the Network
STARLEZZ said:

How were those stocks in Wii U days?

Low. Not as low as during the Gamecube days, but still low.

Ironically, there had always been a very slight upward trend starting from the point the Wii U was released. There were also two sharp price rises during that period, but neither can be attributed to the Wii U - one coincided with the announcement in 2015 of Nintendo's partnership with DeNA and the move to putting games on phones, and the other coincided with the release of Pokemon Go in 2016.



Mnementh said:
TheBraveGallade said:

.... exept for the fact that aftet the mid 2000's, most of sony's subdivisions has crashed and burned, only leaving thier bank, camera, movie, and gaming divisions a profit, so most of it is a negative to sony.

 

as for china, they are literally the only console compay that has actual reach in china due to Ique being a thing.

Sorry, one factory that works at a pürofit or 20 factories of which some do profit, some currently not. Which is more valuable?

The number of factories is really irrelevant. 

Suppose the one factory is making billions.  10 of the 20 factories are making 10 million a year.  The other 10 are losing 5 million a year.  The one factory is more valuable.

JRPGfan said:

Nintendo stock is overvalued ?

In 2016 wasnt there a thread about how Sony had made more money from "ps plus" than the entirety of Nintendo did that year?

 

http://www.eurogamer.net/articles/2016-04-28-sonys-psn-is-making-more-money-than-all-of-nintendo

 

"During the financial year ending 31st March 2016, Sony's PlayStation Network generated 529.1bn yen in sales.

During the same financial year, the whole of Nintendo pulled in 504.4bn yen in sales.

In terms of operating income, or profit, PlayStation made 88.7bn yen (£538m). Nintendo made 32.8bn yen (£207m)."

 

If sony makes much more revnue & profit than nintendo, why is nintendo stock almost as high? 

Stock markets dont make sense to me at all.

There are a number of factors here...

First and foremost is historical performance.  Nintendo has made profit almost every quarter for its entire life, with a recent three year stretch being the only time they've endured losses.  So, even if 2016 was a poor year for Nintendo and a great year for Sony, that doesn't make them a more valuable company.  It's like if you have a baseball team that crushed its rival in the most recent game, but had lost the previous ten.

Secondly, you have to look at assets, liabilities, and debt.  Sony has a lot of long term debt, which diminishes the future profitability of the company.  In 2016, when PSN was making all that money, a big chunk of it had to go to creditors. If you buy the company, you buy the debt with it.  Nintendo on the other hand has no debt.

Sony also has a ton of short term liabilities.  That's a bit different from debt, as it doesn't necessarily carry interest.  Basically, these are bills that are going to come due in the near future.  Sony has more short term liabilities than it has cash available to pay for them.  So, if Sony has a bad quarter or year, they're going to need to either issue more stock, sell long term assets, or borrow money at interest.  None of those are desirable options.  If Sony has a few consecutive bad years, they could be in real trouble.

Nintendo on the other hand has enough cash on hand to pay whatever bills they have, and would still have billions of dollars to spare.  Nintendo could lose about half a billion dollars for 20 years, and there would be no external pressure on them.

Then, there is future potential.  Sony has their hands in a lot of businesses with iffy futures.  Their movie division is tanking, their phone business has had trouble making any headway against google and android, dedicated cameras are disappearing (Sony makes more money selling camera components for phones), and so on. 

Nintendo is in the same boat to an extent, as the future of dedicated gaming hardware is iffy.  But, Nintendo's most valuable asset is their intellectual property.  Even in a world where dedicated gaming consoles  go the way of the CD player, Mario and Pokemon alone are worth billions.  If Nintendo was forced to leave the hardware business, they could instantly become the most valuable third party developer.




To sum it up, Sony is like a guy who has a really high paying job, but has tons of expenses, owes the bank a lot of money, and has a history of money problems.

Nintendo is like a guy with a decent paying job that has a perfect credit score, has no debt, and has virtually no expenses.



JRPGfan said:

Nintendo stock is overvalued ?

In 2016 wasnt there a thread about how Sony had made more money from "ps plus" than the entirety of Nintendo did that year?

 

http://www.eurogamer.net/articles/2016-04-28-sonys-psn-is-making-more-money-than-all-of-nintendo

 

"During the financial year ending 31st March 2016, Sony's PlayStation Network generated 529.1bn yen in sales.

During the same financial year, the whole of Nintendo pulled in 504.4bn yen in sales.

In terms of operating income, or profit, PlayStation made 88.7bn yen (£538m). Nintendo made 32.8bn yen (£207m)."

 

If sony makes much more revnue & profit than nintendo, why is nintendo stock almost as high? 

Stock markets dont make sense to me at all.

Basically this came out:



I describe myself as a little dose of toxic masculinity.

JWeinCom said:



To sum it up, Sony is like a guy who has a really high paying job, but has tons of expenses, owes the bank a lot of money, and has a history of money problems.

Nintendo is like a guy with a decent paying job that has a perfect credit score, has no debt, and has virtually no expenses.

I love using the word decent.  Sorry I don't have much to add but just wanted to point out the word decent.

I even have a decent scale

semi decent, pretty decent, decent

there might be some I've used that are past decent like totally or extremely decent but I usually just say decent at most



JWeinCom said:
Mnementh said:

Sorry, one factory that works at a pürofit or 20 factories of which some do profit, some currently not. Which is more valuable?

The number of factories is really irrelevant. 

Suppose the one factory is making billions.  10 of the 20 factories are making 10 million a year.  The other 10 are losing 5 million a year.  The one factory is more valuable.

JRPGfan said:

Nintendo stock is overvalued ?

In 2016 wasnt there a thread about how Sony had made more money from "ps plus" than the entirety of Nintendo did that year?

 

http://www.eurogamer.net/articles/2016-04-28-sonys-psn-is-making-more-money-than-all-of-nintendo

 

"During the financial year ending 31st March 2016, Sony's PlayStation Network generated 529.1bn yen in sales.

During the same financial year, the whole of Nintendo pulled in 504.4bn yen in sales.

In terms of operating income, or profit, PlayStation made 88.7bn yen (£538m). Nintendo made 32.8bn yen (£207m)."

 

If sony makes much more revnue & profit than nintendo, why is nintendo stock almost as high? 

Stock markets dont make sense to me at all.

There are a number of factors here...

First and foremost is historical performance.  Nintendo has made profit almost every quarter for its entire life, with a recent three year stretch being the only time they've endured losses.  So, even if 2016 was a poor year for Nintendo and a great year for Sony, that doesn't make them a more valuable company.  It's like if you have a baseball team that crushed its rival in the most recent game, but had lost the previous ten.

Secondly, you have to look at assets, liabilities, and debt.  Sony has a lot of long term debt, which diminishes the future profitability of the company.  In 2016, when PSN was making all that money, a big chunk of it had to go to creditors. If you buy the company, you buy the debt with it.  Nintendo on the other hand has no debt.

Sony also has a ton of short term liabilities.  That's a bit different from debt, as it doesn't necessarily carry interest.  Basically, these are bills that are going to come due in the near future.  Sony has more short term liabilities than it has cash available to pay for them.  So, if Sony has a bad quarter or year, they're going to need to either issue more stock, sell long term assets, or borrow money at interest.  None of those are desirable options.  If Sony has a few consecutive bad years, they could be in real trouble.

Nintendo on the other hand has enough cash on hand to pay whatever bills they have, and would still have billions of dollars to spare.  Nintendo could lose about half a billion dollars for 20 years, and there would be no external pressure on them.

Then, there is future potential.  Sony has their hands in a lot of businesses with iffy futures.  Their movie division is tanking, their phone business has had trouble making any headway against google and android, dedicated cameras are disappearing (Sony makes more money selling camera components for phones), and so on. 

Nintendo is in the same boat to an extent, as the future of dedicated gaming hardware is iffy.  But, Nintendo's most valuable asset is their intellectual property.  Even in a world where dedicated gaming consoles  go the way of the CD player, Mario and Pokemon alone are worth billions.  If Nintendo was forced to leave the hardware business, they could instantly become the most valuable third party developer.




To sum it up, Sony is like a guy who has a really high paying job, but has tons of expenses, owes the bank a lot of money, and has a history of money problems.

Nintendo is like a guy with a decent paying job that has a perfect credit score, has no debt, and has virtually no expenses.

yeah sony can't go third party cause... they live off of being a third party support. if they give up hardware, they give up.

ninty on the other hand... there is a REAOSN why sony fans wanted ninty to go third party, cause even die hard sony fans want a nintendo game or two.

 

well, more accurately, sony is the CEO who earns a lot but also has a lot of debt old and new, though not enough to compromize his high living standerds.

ninty is the division head of a big well off company who also managed to accumilate a big bank account, though he made a mistake in a stock investment recently.