Nintendo stock continues alarming collapse... 5 year low. Reggie comments.

[silicon]

Mr Khan said:

Carl2291 said:
Right. Because I don't know much about Stocks an the market and whatever...

Can someone explain the significance of this to me, please?

Is it just people losing faith in Nintendo, or does it affect the company in a large way?

Investors =/= people, and are very flighty, and react to a whole host of factors outside of company performance. It *can* reflect a lack of faith in their sales potential, but not necessarily

Basically this. When you buy a stock you want the stock to increase in value over time. But when you buy the stock it has to increase more relative to keeping money in the bank or bonds or any other stock. If the stock doesn't have a lot of potential to increase in vaue it's worth less.

That doesn't mean that Nintendo is doomed, or the WiiU won't sell. Actually the WiiU could sell a huge number and the stock could still decrease. The problem is that it needs to exceed Wii sales and people don't see that happening.