Nikkei: Nintendo stock falters

[Ail]

mike_intellivision said:
Microsoft is 33% off its 52-week high. Sony is 50% off its 52-week high. Both have/are losing money (in video games if not overall) and layoff employees.

Meanwhile, Nintendo is 58% off its 52-week high. Even though it is setting profit and sales records.

I don't know about you. But one of these three seems more fiscally sound than the others. Now it could just be that Nintendo's stock was severely over-valued in the immediate afterglow of the Wii's release. Or it could be that analysts think a company losing money and shedding employees is a better buy than would rather a company shedding employees that makes money.

(Of course, part of this also is that Nintendo is essentially a one-trick pony. But a long-term, highly successful one-trick pony).

Mike from Morgantown

You are misrepresenting things a lot.

Microsoft's stock is a lot more fiscally sound than Nintedo.

Nintendo has to reinvent itself every 5-6 years and if they just fail a gen the stock is going to take a huge nose dive...

 

Nintendo made a net profit of 2.7 billion $ in the year 2008-2009.

So far in the 9 months period going from July 2008 to March 2009 Microsoft has made 11.5 billion $ of net profit.....

Net profit for the whole year is going to be somewhere around 14 billion $ for Microsoft, about 5 times what Nintendo made....

Finally Nintendo announced no growth expectation for the next fiscal year and it's fairly evident that the Wii will either have peaked in 2008 or will peak in 2009, same with the DS.

So if you look at the future outlook, Nintedo will need to release some new successfull hardware in the fiscal year 2010-2011 or expect to see revenue and profit fall....