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

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.



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A direct is sorely needed and I'm glad Nintendo recognizes this. I can't believe investors thought Nintendo would come out guns a blazing with some killer Mario app. Nintendo said that wouldn't necessarily happen. Well, the delay didn't help either. Nintendo's in a tough spot right now. But Nintendo is kinda like Goku. When they've been beat to a bloody pulp, they find some way to overcome. Let's hope that's the case this time around.



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

Yeah, stocks are silly

lol, my thoughts exactly.



"Just for comparison Uncharted 4 was 20x bigger than Splatoon 2. This shows the huge difference between Sony's first-party games and Nintendo's first-party games."

Basically I just saw this as a knee jerk reaction to the delay and the fact that it wasn't a Mario game. I'm also willing to bet dollars to donuts that the people who just left where the ones who only become interested in Nintendo the moment they announced they were stepping into the mobile realm.

Watch, if Miitomo (and by extension Nintendo's other current plans) go smoothly and become successes, they will earn back all they lost and more.



"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,



In this day and age, with the Internet, ignorance is a choice! And they're still choosing Ignorance! - Dr. Filthy Frank

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.



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.