The price to earnings ratio on Nintendo's stock is massive. It's the 13th highest company on either of the Japanese stock exchanges, and all of the top 12's P/E ratios are 7 to 20. Nintendo's is sitting at 231! That might not mean anything in the long run, but it could signal that investors are expecting a massive, massive increase in revenue and profits, which makes me think most of them are expecting the success of Pokemon Go to cause a shift in the way the company operates, so that it focuses nearly all of its efforts on mobile rather than pursuing the hybrid strategy that seems to be working now. It will be interesting to see where this stock will go, since the rise doesn't seem to be petering out as of yet, even though it really should have. It seems that investors are banking on Nintendo to produce plenty of Pokemon Go-style successes in the future (which, who knows, maybe they will).
The funny thing is about this is that it looks like the Sony stock is performing badly, which is quite the opposite, it's at the highest it's been in nearly a decade. It's just that Nintendo's rise is one of the most incredible sky-rockets of stock prices the markets have seen (literally the highest, in terms of the Japanese markets).
