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Forums - Nintendo Discussion - NINTENDO stock -34% since March 2018

Ljink96 said:
I also heard reasoning that Donald Trump's tariffs on Chinese manufactured electronics have caused investors to become shaky. But, a poor E3 showing, vs. Gamestop seeing sales double during E3 week is a weak argument. Pokemon and Smash Bros. are among Nintendo's best selling franchises, I wouldn't exactly call that a "poor" showing. The stock market in itself is volatile, this happens. Hell, it dropped by like 5% after the Lets Go announcements. Most of these investors don't necessarily understand Nintendo or the game industry like they should.

For example, Pokemon Go shot Nintendo's stocks up the roof, when investors should have been investing in Niantic or The Pokemon Company as they get a greater cut than Nintendo. It was a bad evaluation by the market

Didn't you just contradict yourself in your own comment? You say that it's poor reasoning but then say that stock investors are unreasonable and don't get the industry. By saying E3's weak showing probably affected the stock market, you're not necessarily saying that the drop in stock is earned. Just that with knowledge of how out of touch investors can be (like you pointed out yourself), it wouldn't be surprising if the E3 showcasing was a big reason why.

Although, honestly, I think even if every investor was in touch, it probably would have fallen a bit after e3 anyways. 



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Ljink96 said:
I also heard reasoning that Donald Trump's tariffs on Chinese manufactured electronics have caused investors to become shaky. But, a poor E3 showing, vs. Gamestop seeing sales double during E3 week is a weak argument. Pokemon and Smash Bros. are among Nintendo's best selling franchises, I wouldn't exactly call that a "poor" showing. The stock market in itself is volatile, this happens. Hell, it dropped by like 5% after the Lets Go announcements. Most of these investors don't necessarily understand Nintendo or the game industry like they should.

For example, Pokemon Go shot Nintendo's stocks up the roof, when investors should have been investing in Niantic or The Pokemon Company as they get a greater cut than Nintendo. It was a bad evaluation by the market

Gamestop sales doubled after E3 cause that week they had a crazy promo, trade in xbox/ps4 get 250$ towards a switch. Aside from that main reason it went down is cause nintendo es expecting a lower shipment then Q1 2017, which doesn't bold well for the 20 million forecast. 

Last edited by quickrick - on 08 July 2018

Nintendo's stock will go back up soon.



WhatATimeToBeAlive said:

https://www.forbes.com/sites/insertcoin/2018/07/05/why-are-investors-panicking-about-the-nintendo-switch/#558aa5a228e7

Nintendo stock has been in continuous descent since March 2018 and it's now -34% lower than in March. Last year there was a lot of talk when Nintendo stock was about the same as SONY, but I haven't noticed anyone here talk about this. I wonder how does this indicate SWITCH's future succes.

This does not bode well for the recently-released PS4.



Why do Nintendo's shareholders panic so easily? Every time something slightly wrong happens, they flip out. Talk about short term interests...



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Darwinianevolution said:
Why do Nintendo's shareholders panic so easily? Every time something slightly wrong happens, they flip out. Talk about short term interests...

right? its pretty silly. But then gamers go and follow suit though and also panic when shareholders panic and then we start talking about how in trouble or doomed Nintendo are. We'll forget  all about this when the stocks go back up. 



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AngryLittleAlchemist said:
Ljink96 said:
I also heard reasoning that Donald Trump's tariffs on Chinese manufactured electronics have caused investors to become shaky. But, a poor E3 showing, vs. Gamestop seeing sales double during E3 week is a weak argument. Pokemon and Smash Bros. are among Nintendo's best selling franchises, I wouldn't exactly call that a "poor" showing. The stock market in itself is volatile, this happens. Hell, it dropped by like 5% after the Lets Go announcements. Most of these investors don't necessarily understand Nintendo or the game industry like they should.

For example, Pokemon Go shot Nintendo's stocks up the roof, when investors should have been investing in Niantic or The Pokemon Company as they get a greater cut than Nintendo. It was a bad evaluation by the market

Didn't you just contradict yourself in your own comment? You say that it's poor reasoning but then say that stock investors are unreasonable and don't get the industry. By saying E3's weak showing probably affected the stock market, you're not necessarily saying that the drop in stock is earned. Just that with knowledge of how out of touch investors can be (like you pointed out yourself), it wouldn't be surprising if the E3 showcasing was a big reason why.

Although, honestly, I think even if every investor was in touch, it probably would have fallen a bit after e3 anyways. 

No, these two things address two entirely different points. A "poor" E3 showing doesn't correlate with software and hardware sales jumping to the top of Gamestop and Amazon.

I mentioned Let's Go's initial announcements dropping stock because investors as a whole on Nintendo's part don't understand the industry. Not consumers don't understand the industry. So the first part you bolded references how well the consumers understand Nintendo vs. the second bolded as how well investors understand Nintendo. I don't see how my words got mixed up here. 



Darwinianevolution said:
Why do Nintendo's shareholders panic so easily? Every time something slightly wrong happens, they flip out. Talk about short term interests...

Because I guess quite a bit of Nintendo's shareholders are guys who put their money there when they see an announcement like Labo or Pokemon, thinking "OMG it's maybe the new Wii, jackpot !". And then they see that's it's not going to be the famous new Wii phenomenon (announced here every 6 months), so they're disappointed and sell it.

 

March was the release of Labo, right? You have your explanation for the fall right here. 





Darwinianevolution said:
Why do Nintendo's shareholders panic so easily? Every time something slightly wrong happens, they flip out. Talk about short term interests...

I think they easily freak out because they don't really understand gaming. They hear about mobile-gaming and micro-transaction driven GaaS and when Nintendo doesn't go all in on that they freak out. But that is just my interpretation i might be wrong



quickrick said:
Ljink96 said:
I also heard reasoning that Donald Trump's tariffs on Chinese manufactured electronics have caused investors to become shaky. But, a poor E3 showing, vs. Gamestop seeing sales double during E3 week is a weak argument. Pokemon and Smash Bros. are among Nintendo's best selling franchises, I wouldn't exactly call that a "poor" showing. The stock market in itself is volatile, this happens. Hell, it dropped by like 5% after the Lets Go announcements. Most of these investors don't necessarily understand Nintendo or the game industry like they should.

For example, Pokemon Go shot Nintendo's stocks up the roof, when investors should have been investing in Niantic or The Pokemon Company as they get a greater cut than Nintendo. It was a bad evaluation by the market

Gamestop sales doubled after E3 cause that week they had a crazy promo, trade in xbox/ps4 get 250$ towards a switch. Aside from that main reason it went down is cause nintendo es expecting a low shipment then Q1 2017, which doesn't bold well for the 20 million forecast. 

No, the specifically mentioned Switch hardware not by trade ins or anything. 

https://www.gamasutra.com/view/news/321467/GameStop_says_Nintendo_Switch_sales_doubled_following_E3.php

The also mentioned along with that, pre orders from Smash and Pokemon jumped to the top of their databases. And if consumers really are trading in their PS4 or Xbox just to get a Switch...I think that would signal good sings to investors still. And where are you getting this stuff that Nintendo is expecting a low shipment? Tatsumi Kimishima openly said Nintendo has no doubts that they will hit their 20M goal. Can you quit making stuff up please?

"Kimishima-san mentioned that the plan remains to ship twenty million shipments for the console in the current fiscal year (between April 2018 and March 2019), and there are no problems in securing the required production volumes. While it’s true that the price of parts is affected by fluctuations, negotiations are undergoing to any impact on the production costs of these twenty million units."

https://www.bleedingcool.com/2018/07/03/nintendo-expects-hit-20-million-switch-shipments-2019/