Securities of Nintendo, which is rightly considered to be one of the world’s most famous and largest manufacturers of game consoles, have fallen by 9%. This is the biggest drop in the past 2 years. The depreciation of the securities is the result of the fears about the sales of Switch consoles during the holidays.
Nvidia, the manufacturer of microchips for the Switch consoles, has already given a negative outlook for this quarter revenue. Investors were alarmed by the fact that Nintendo had no new games that could contribute to the increase in console sales.
In the past quarter, the company sold 3.2 million consoles, which is about 300 thousand more compared to the same period last year. Nintendo has confirmed the forecast of the implementation of 20 million consoles in the current fiscal year.
Switch is a portable console that can be connected to a large screen. Its main feature is exclusive (and something specific) games, the shortage of which became most evident before the upcoming holidays.
Now analysts give very cautious forecasts about the stock price of Nintendo, but the “buy” status remains.
Over this year, the value of the company has fallen by more than 20% to the value of 44 billion US dollars.
The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade