RolStoppable said:
Sony's stock would most likely not be affected at all as investors factor in the future. The PS4 is already 3.5 years old and it's clear since a long time that it will get full support from Take Two, including GTA VI. Beyond that, PlayStation is only a part of Sony as a whole. In Nintendo's case, analysts across the board have expressed doubts as recent as four months ago, so Nintendo's stock wasn't one to buy, according to them. Of course they were mistaken, so since the Switch launch we've been seeing a correction. The share price has climbed by over 30% in the last three months because it's becoming clearer with each passing week that Switch will be very successful, thus raising the probability that Nintendo will beat their own forecasts for revenues and profits. And this is really the most important factor in investors' interests, whether a company is speculated to finish above or below their own forecasts. The stock market is about being ahead of the curve. Analysts were nice enough to dampen expectations for months, so smart investors were put into a position where they could buy Nintendo shares at a low price and see a nice return within a few months. Of course, holding on to shares makes a lot more sense, because now others are realizing that Nintendo is on the rise which will push up Nintendo's stock even further throughout 2017. |
So you're saying switch wasnt guaranteed of a monster hunter game and this announcement was unexpected and thats why nintendo stock went up?
