kowenicki said:
Train wreck said:
So Nintendo's stock is down 2.4% from where it closed yesterday in New York, meaning that first look investors are treating this number as a negative as the stock was up 3% in Japan before they were released.
You can really take these numbers one of two ways:
Glass half empty scenario:
-Wii, DS and 3DS margin pressure
-3DS still losing money and Nintendo said that the device will not be sold "below cost" starting in the 2nd half, which means it can break-even, doesn't necessarily mean it will profit.
-Uncertainty about the Wii U
-Nintendo has been wrong on their guidance for the past 3 years and forecasting for the upcoming year seems to be immature
-Still vulnerable to swings in currency exchange
-Burning through a lot of cash
Glass half full
-3DS will be at least break even in the second half 2012
-strong library scheduled for the second half of the year
-Certainty about the Wii U
-Still has alot of cash on hand |
if you miss market expectations then the markets hits you.
the average market expectation was for better numbers.
|
It depends if you are talking about the future or past.
For the past, Nintendo didn't miss expectations, they beat. Back in January they were forcasting a loss of 60 billion yen, they came in at loss of 43
For the future, they are coming in below forcast (Current forcast was for +40, nintendo is projecting +20) but forcasting a year out is a dangerous thing becuase you dont know what the world will look like a year from now, for all we know the world ends on the 21st of December.
