The stock business in general has been thrown out of whack, since some of the basic rules are being brought into question. Many investors don't know how to truly evaluate how much a company is worth anymore.

Hot damn!

Obviously this just means that Nintendo was actually printing money last year. I bet thats one of the reasons why they couldn't produce enough Wiis. They were using half of the factories to print money out. LoL. Way to go Nintendo. At least there is a company out there that is actually making some money.

@wfz: I don't know about that so much. Stocks in general tend to be overpriced in relation to what the actual gains are when owning a share.
Stock price first and foremost is what the market expects from a company. Huge growth always inflates the price.

"I can calculate the motions of heavenly bodies, but not the madness of people"

Isaac Newton, talking about the stock market after losing a small fortune.

But ... but ... Kotaku said the Wii is dying in Japan. I refuse to believe. Casual gamers will lose interest and Nintendo will go out of business.

Well my stepfather works in management in a relatively small medical company, and there have been people who have tried to buy out the company recently, and the stock has been going up and down abnormally. Everything I just said comes from what he told me, so I would put some truth in it, considering he's been a rather big part of it all.

I forgot if it was profits or revenues, but apparently the "go-by-rule" for how much a company was worth was by a certain % of their profits(or revenues?). Apparently that percentage doesn't hold up any more, and people are fairly confused on how they should value companies, since they seem to think that the old values shouldn't be used anymore, or at least for the time being (with the economy the way it is).

while great nintendo it's making money, if you own stock, not so great for the gamer because games releases from nintendo look far away =(

Not completely true especially now.

If you do not meet profit analysts expect, the stock price would drop even if you make money. Maybe Nintendo is expected to make $5.5 billion for the year and now they "only" made $5 billion. On the other hand, if you don't lose as much money as the analyst expect, the stock price would go up even if you lose tons of money. Say a company loses "only" $1.8 billion instead of $2 billion that analysts expect.

Just like a lot of things, it's all relative to expectations.

Stock price has nothing to do with current results( except if they widely differ from expectations) but is more inline with the future growth expectation for the company..

Some people probably sold the news too. ( buy on the rumor, sell on the news).