The stock drop is not all that unusual. Nintendo has rarely been a good target for short-term investors. Nintendo stocks have only shot up during the Wii years (and that was only about 2.5 years into the Wii, before they dropped) and now during the Switch launch. Nintendo's strength as a publicly traded company has usually been the stable dividends they provide (provided that the Yen is sufficiently weak for a respective operating fiscal year; considering Nintendo, like many other Japanese multinationals, obtains most of its sales abroad and takes advantage of the exchange rate) and hence more attractive to mid-longterm institutional investors (Nintendo's top investors are banks and financial institutions).
As for the topic of Switch sales. Based on the current line up, which I agree will sell a lot of hardware in the latter half of the year, right now I am looking at 13-15 million units shipped. I don't think a weaker Q1 in 2018 compared to Q1 2017 is all the doom and gloom that some are making it out to be (Q3 being lower though would be problematic). For one thing, Nintendo, likely did not ship as many units at the end of Q4 2016 for Q1 2017 due to the supply constraint at launch, whereas in Q4 2017 they likely shipped units for Q1 2018. Secondly, a slightly lower Q1 can more than be made up for in stronger sales quarters. Now none of this means that they will reach 20 million, but we are also not looking at a sales wormhole either.
With that said, there are still steps that Nintendo can take to reach the 20 million goal, so I am far from ruling that out at this point.
1. Price drop on Switch hardware
2. Introduction of bundles with last year's evergreen releases
3. Introduction of a hardware revision (cheaper handheld-only Switch) before Q4 2018 ends (I can see something like that being announced in January of 2019 and going up for sale in March 2019).
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