Nintendo shares drop after huge upturns
Nintendo stocks drop after market closed last week despite the phenomenal rise since the release of Pokémon Go. Image INQUIRER.net
In the previous weeks, Nintendo enjoyed record-breaking increases in its stock value due to the popularity of Pokémon Go. However, the market closed last Friday with a report that Nintendo shares went down by $6.4 billion in market value.
According to a Bloomberg report, Nintendo Co. indicated that the financial impact of Pokémon Go would be limited. Its stocks sank 17% as of midday in Tokyo. As of today, the company cannot fall more than 18% as per exchange rules on the maximum that share prices can fluctuate per day.
David Gibson, a Macquarie Securities analyst, estimates that Niantic (the American software development company that developed and published Pokémon Go) and Pokémon Co. have only 13% of an “effective economic stake” on the app.
This does not affect users, however, as Nintendo says it does not expect to revise its annual forecast based on “current conditions.” The firm is forecasting an annual net profit of 35 billion yen (US$330 million) for the current fiscal year, which is 16.5 billion yen more than last year. Alfred Bayle
