Now, over the past 2 years, I keep seeing people and analysts that are saying that Nintendo isn't in a healthy position due to their stock price down over 80% since 2007. Now, this is a fact that their stock has been going down. But the thing is, it's not going down because they are not healthy as a business, their stock prices are simply going back to their "normal" prices. What I mean by this is that their 2 phenomenons (the wii and the ds) both made their price become ridiculously overvalued. And now that these 2 phenomenons are dead, their stock price simply "crashed" to the pre-wii and ds prices. Look at this chart:

You can see that the stock price in 2006 is around what it is today, and then the wii and ds phenomenons came which resulted in a huge boom in the price of their shares. 

Why are people using this argument when saying that Nintendo is going down, their share prices are simply going back to their normal prices. Yes, they are very low at the moment (9080 yen), but I am sure they will stabilize once again at around 11-14K yen which is perfectly fine. 

Anyways discuss here.

Isn't it more or less Nintendo's stock was overvalued?

Pretty sure analysts know this >_>

That's the same thing that's happening with apple. That's how stock,prices work... It's not misleading analysts.

That doesnt mean they're not making money.

Wii and DS generated the revenue and showed potential future revenue to justify those prices. It was never overvalued. Nintendo just did not keep it up.

Whether you think this was because Wii was a fad or that Nintendo screwed up is determined by your console alliegiance really. I wish it depended on evidence.

Apple's stock price depended on them exceeding future estimates by far, AND selling more units of frankly a luxury good to more people than would ever be part of the market in a downturn. It was overvalued and Apple could not have acted otherwise to improve the situation.

The only people complaining are the investors who were expecting another WiiDS money printing era, which is totally unreasonable and likely never to happen again.

Here's a fuller version of the chart:

I am pretty sure I said this in the OP... "wii and ds both made their price become ridiculously overvalued"

Exactly Investors to Nintendo: Where are my bilions bitch?!?

Things returning back to normality for Nintendo then.

Nothing to worry about, but for the investors, "I'm getting less winnings! time to sell!!!" XD