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Forums - Nintendo Discussion - Nintendo Shares Level Out After $4 Billion Drop in Company Value

"That decline is reportedly the most rapid seen since 2011"

No, it isn't. It lost 17% in a single day in January 2014. Plus, for a stock to decrease like that after posting over 100% increase in less than a year is not unusual by any means.



Money can't buy happiness. Just video games, which make me happy.

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Ka-pi96 said:
Delay a mobile game = $4 billion loss in value.

Yeah, stocks are silly

Delays inspire a lack of confidence, especially when this mobile game strategy was supposed to turn things around.

Expecting delays, encourages the poor planning that leads to them. Delays should be penalized, especially in this case. Where it's not just a game delay, its the delay of the entire mobile strategy if you will, a false/late start.

And as anyone who has ever run track before knows, if you have a false or late start,



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Ka-pi96 said:
Delay a mobile game = $4 billion loss in value.

Yeah, stocks are silly


Well, considering that Nintendo's future relies on it.



Teeqoz said:
freebs2 said:
Ka-pi96 said:
Delay a mobile game = $4 billion loss in value.

Yeah, stocks are silly

Rather than silly, they're very short term oriented.

 

On the contrary, stock markets are longterm oriented... Investors expected Nintendo to utilize some of their huge IPs for their mobile games, and while they may do so later, Miitomo is overall just dissapointing for investors. It doesn't help that it was delayed either.

Couple that with the fact that Nintendo's stock basically doubled in value on the announcement that Nintendo would make mobile games alone, and investors now realizing that their expectations were unrealistic, it makes sense.

The value of stocks depends on expected profits. When Nintendo announced they've gone mobile, stocks rose beacuse investors started expecting more profts form mobile games. When Nintendo announced Miitomo and its postponement to next year, those expected profts (the ones generated by the use of flagship IPs on mobile platforms) became more distant in the future, thus less certain.



freebs2 said:

The value of stocks depends on expected profits. When Nintendo announced they've gone mobile, stocks rose beacuse investors started expecting more profts form mobile games. When Nintendo announced Miitomo and its postponement to next year, those expected profts (the ones generated by the use of flagship IPs on mobile platforms) became more distant in the future, thus less certain.


This, glad the are people here who at least has an understanding of why and how markets move, the markets move on speculation and the speculation for the year was incoming profits from an entry into mobile so the market moved to reflect that.



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Wyrdness said:
freebs2 said:

The value of stocks depends on expected profits. When Nintendo announced they've gone mobile, stocks rose beacuse investors started expecting more profts form mobile games. When Nintendo announced Miitomo and its postponement to next year, those expected profts (the ones generated by the use of flagship IPs on mobile platforms) became more distant in the future, thus less certain.


This, glad the are people here who at least has an understanding of why and how markets move, the markets move on speculation and the speculation for the year was incoming profits from an entry into mobile so the market moved to reflect that.


Yeah, but the article also makes it clear investors were underwhelmed with the lame looking 'game,' which you've been arguing against in other threads.



VitroBahllee said:


Yeah, but the article also makes it clear investors were underwhelmed with the lame looking 'game,' which you've been arguing against in other threads.


Nope in the other thread this is flat out what I've told you, profits were speculated to be on the way due to an entry in mobile which has now been delayed. As he pointed out the value of stocks depends on expected profits so a delay in these profits means the price would drop meaning a number of current holders weren'te going to make their speculated return. The smart move is to sell while the stock is still overweight before the market corrects itself to reflect the speculated profit not turning up, that way you make money because as he pointed out stocks are short term (in other words they fluctuate like I told you).

You argued in the other thread about the quality of the app as a game which investors don't care about, they care about making money and were hoping for a microtransaction fest. In the other thread I said the stock was going to even out as well something you argued against, take notes from that guy quoted he has an idea of how stocks operate.



VitroBahllee said:
I have been trying to tell people that the nature of the app is a big part of this drop, not just the delay. Nice to see it spelled out for the more 'unconvincable' folk out there.


they also missed their earnings estimates which contributed to the drop as well- but not as much as the delay and nature of the mobile game



I'm almost certain that the loss were from investor that were expecting a Mario game with microtransactions out the ass.



Wyrdness said:
VitroBahllee said:


Yeah, but the article also makes it clear investors were underwhelmed with the lame looking 'game,' which you've been arguing against in other threads.


Nope in the other thread this is flat out what I've told you, profits were speculated to be on the way due to an entry in mobile which has now been delayed. As he pointed out the value of stocks depends on expected profits so a delay in these profits means the price would drop meaning a number of current holders weren'te going to make their speculated return. The smart move is to sell while the stock is still overweight before the market corrects itself to reflect the speculated profit not turning up, that way you make money because as he pointed out stocks are short term (in other words they fluctuate like I told you).

You argued in the other thread about the quality of the app as a game which investors don't care about, they care about making money and were hoping for a microtransaction fest. In the other thread I said the stock was going to even out as well something you argued against, take notes from that guy quoted he has an idea of how stocks operate.

The "market" does care about the game because if it does not have confidence in the produc/game that is just as bad or worse than a delay- If the product the investors were counting on does not sell like the had hoped that not only delays profits and/or revenue growth it can cause losses (or less profits) 

So to say investos don t care about the game is wrong-  of course the care-

Additonally i have not seen any article or quote from stock analyst, investors ect that said they expcted Mario and micro transactions