Nintendo stock down 9% last 2 days

[HappySqurriel]

Train wreck said:

HappySqurriel said:

Train wreck said:

Heavenly_King said:
looks like WiiU is not selling as expected?

I think you are correct.  For many companies, esepcially those in consumer electronic, its all about managing expectations.  Nintendo being down 20% since its launch indicates to me that people are selling based on Nintendo not being able to meet their own expectation of 5.5 million Wii U and 5 million Wiis by March 2013.  Why wait for Nintendo to tell you the bad news themselves, by that time, itll be too late to sell.

As I said in my last post, I suspect it has more to do with speculators than investors ...

Speculatos will cause Nintendo to miss their Wii/Wii U projections?  Thats news to me.

You don't invest much do you?

At the end of August until the middle of October Nintendo was trading at much higher volumes than they typically do as day traders and short term speculators bought Nintendo's stock in the hopes that a strong Wii U launch would increase the stock price. When the launch did not have that effect they dumped the stock to cut their losses. These speculators don't care what Nintendo's projections are, they only care whether public perception of the success of the launch drives the stock price higher.

Essentially, they're not that much different from console scalpers, they don't care whether Nintendo sells 100,000 or 1,000,000 units in 2012 as long as the re-sale price of the system on ebay turns them a healthy profit.