Soundwave said:
Which from a stock valuation market indicates an overpriced stock. A real easy tip off is to look at net profit ... if their stock is almost the same price as it was during the Wii/DS days, the profit numbers should be close too ... but they're not even close. When a company's bottom line profit doesn't reflect the price of the stock, that's a massive sign that you're buying a stock inflated by speculation. Investors are too giddy over China, piracy is rampant in China. Nintendo has tried various ventures in China before to limited success. |
That's because Nintendo has had only one quarter of financials released for the Switch (Q1) where profits nearly doubled. This is even with weaker hardware sales (only about 2 million that quarter).
Investors don't look at pure profit. They look at growth. The reason the stock went up is because analyst revised their projections for the system upward to 130 million sold. This is what drove the stock up. Investors are looking at future profits (which is what you're missing). Switch's profits aren't going to match the Wii and DS years because we are talking about one quarter. Investors are expecting a huge increase in earnings for the rest of the year,
Visit my site for more
Known as Smashchu in a former life
