Nintendo shares slide 10 percent

Wii and DS maker's stock opens the week down sharply despite last Thursday's upbeat financial report.

The stock market doesn't always follow conventional wisdom. Last Thursday, Nintendo reported its sales figures for the last nine months of 2007, revealing that it had doubled its revenues and profits over the same period the year before. While there was an initial spike in the publisher's share price after the news, that gain has since been lost and then some, with the stock dropping nearly 10 percent of its value during Monday's trading. Nintendo shares closed the day at ¥46,800 ($438), down from its previous close of ¥51,800 ($485). The company's stock is down 36 percent from its 52-week high of ¥73,200 ($685), which it hit in October.

A Reuters report offered a number of possible explanations for the drop. Given that so much of the Japanese company's business comes from foreign markets, the report said analysts are concerned a stronger yen could hurt its earnings. The report also mentions that some large investors sold off significant amounts of Nintendo stock, cashing out on the large gains the company has made over the previous years.

"This has little to do with the company itself, but a lot to do with market sentiment," Mizuho Asset Management fund manager Yoshihisa Okamoto told Reuters. "In the current market environment, investors rush to sell at the first sign of negative developments or exhaustion of positive news."

150 Comments

  • sickside6 posted Feb 5, 2008 1:01 am PT (does not meet display criteria. login to show)

    sickside6

    Posted Feb 5, 2008 1:01 am PT (hide)

    Nice nintendo is slipping

  • sidneyisaac

    Posted Feb 1, 2008 2:57 pm PT

    um... ok i come on hear to hear peoples opinions about this article and nintendo's stock. and all that is hear are a bunch of people arguing. and yes, ur are quite stupid HMtheJJ. stupid and rude.

  • fairlypriced

    Posted Feb 1, 2008 3:34 am PT

    Having money or being able to play the stock market on a non-brainer share does not make you smart HMtheJJ. It certainly doesn't make you a better person. If the only thing you value in life is how rich you can be and that makes you feel superior then I suggest you buy a PS3/xbox and a lot of games as video games will be your ownly friend.

    "educating people" that haven't asked you to interrupt their open discussion with rude poorly formed posts does not make you look smart - it makes you look like a fool. I don't want to insult you - I barely can write in 2 languages and you possibly know several (clearly English not being perfect). But regardless if you have really had success or know a little about stocks or Nintendo you come across as a spoilt, poorly educated brat and I imagine your parents/colleagues/school mates would think you're an idiot if they read the trash you were posting on here.

    RE: Nintendo shares
    I own some shares but not Nintendo stock. I am very sure this dip will be reversed as buyers take advantage of the lower price and Nintendo continues to ship out a crazy amount of consoles and the 2008 games line up makes Wii and DS even more popular. However, there is a limit to how high such an expensive share will go. If you buy a $1 or share it doesn't take much for it to go up to $2-3 dollars and you've doubled your money (if you can sell it at the right time). With expensive shares like nintendo I don't imagine it will increase more than 25% even if SSBB and Wii fit are run away hits that I hope they are. There is a lot more involved in making profit from shares than buying and selling as some have mentioned and I don't pretend to know the full details (despite all the training when I used to sell ISAs/investments - I was not a financial advisor or a stock market guru) so I leave my shares to the management company that I set it up with and so usually they've gotten me decent returns but even they are struggling to market the way it is.

    Anyway enough yapping and back to work. PS. I love my Wii but I am not a fanboy and will openly say some of the games are less than top notch. Still think the PC has the best selection/range and quality of games and thanks to emulators lets me relive N64 days etc. but nothing beats Wii when I've got friends or family around who are not hardcore gamers.

  • tidyspidey

    Posted Jan 31, 2008 10:50 am PT

    The weakened dollar this week was responsible, mostly..... There were movements of +/-300 points on the UK FTSE too. Nintendo, along with other Japanese companies will rely heavily on the US $ and DowJones as they typically invest huge amounts of their assets into US companies. If they move down, Ninty's pot of profits take a hit, along with all other companies who have overseas interests.

  • flynow

    Posted Jan 30, 2008 2:20 pm PT

    With SSBB coming out in March I would have held on for a couple more months before selling.

  • DaLegendKilla92

    Posted Jan 30, 2008 2:08 pm PT

    Stocks go up, and stocks go down. That's how it usually works people...LOL

  • R3DN1N3

    Posted Jan 30, 2008 12:08 pm PT

    HMtheJJ R3DN1N3 , r u applying only stupid ppl can be here? oh that's discrimination!!! smart ppl can be here to teach those stupid a thing or two only if they are willing to accept the FACTS!!! lol you all think of me as BS cuz you are all poor and stupid, you know the sick ppl in a mental hostipal think the doctors are crazy, and you are the sick ppl here, once in a while someone truly smart comes along all you wanna do is reject, and that perfectly explains everything and futuer proves my theory of you poor sad little ppl is TRUE!!! stop saying bad things back to me, if you look back the posts, i started only after some moron started to attack me personally (not opnion only), and no matter what you say would just end up being some of the jokes or eveidences i'll use against you, since i have proper physiology education, and whatever you say would be proof of your own insanity!!! -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
    Do u even proof read anything u post here?
    For a self-proclaiming smart*$$ your making alot of mistakes.
    In this post right here you claim to have "proper physiology education" which is the understanding of the human body.
    You were probably trying to say u had proper Psychological understanding.
    Also u mispelled evidences and instead typed "eveidences".
    Remember Mr. Harvard, it's always "i" before "e".
    U also mispelled opinion "opnion".
    Also future "futuer".

    And this is only the post u replied on above.
    The most recent post has u saying this:

    "let's hope one day you'll now how to make money on your own and go on to afford, Pagani, Aston Martin, Alex McQueen, Dolce... but sadly it wont happen cuz you dont have a very low IQ and EQ ......"

    There's 1 mistake here and all anyone has to do is read this little excerpt.
    It was how the guy ur bashing can't afford this or that because he "DOES'NT" have a "LOW" iQ.
    ......that made no sense.
    For someone who's rich and wants to appear smart your doing a bad job.
    Actual rich people everywhere are lowering their heads in shame.
    Next time Mr. Harvard, there's a "check spelling" button below "submit".
    I'd use that if I were u, i wouldn't want ppl to think I'm......BS-ing.

  • jacksonm560

    Posted Jan 30, 2008 9:18 am PT

    hmm i express an opinion and get a warning for it off gamspot. how pathetic.

  • HailToTheGun

    Posted Jan 30, 2008 6:58 am PT

    Someone's been playing a bit too much Grand Theft Auto. Jack Thompson, where are you?

  • diablobasher

    Posted Jan 30, 2008 1:06 am PT

    Neglecting to learn to speak english does not make you appear smart. And making a few bucks off some predicitons anyone could make on the stock market does not make you appear smart.

    Youre just an angry teenager living off his parents money and wouldnt know how to make money if a gold bar hit you in the face. Just do everyone a favor and go the hell back to your rooftop swimming pool. You're lowering the entire communitys IQ by making us read your drivel.

  • R3DN1N3

    Posted Jan 29, 2008 4:47 pm PT

    HMtheJJ I call zaphod_b poor and unedcuated!!! for some reason you think STock market is easy as buy and sell, what a 123 eh? then how come you are not rich. "just poor thinkin clever, funny they can't find a way to make more money" lol and Geezzzeee lol, time wasting here to educate ppl, if stock market is as easy as you see it is, it wouldn't be stock market anymore... -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

    If your so smart why are u even here?!
    You would think a smart "rich" guy like yourself would be too good to be doing something as low as being a member of a gaming site.
    Don't u have some waterpolo games to attend or horse riding lessons to go to?!
    ".....just poor thinkin clever, funny they can't find a way to make more money".........
    Nobody here likes u because of how your acting, and we all think your BS-ing.
    If u aren't however, and u do turn out to be what u say u are then I'm glad I'm not in the same class as u.
    Money makes people greedy and your the perfect example of people living off of "Daddy".
    Get a decent job and learn what life is all about instead of pushing people's buttons for the hell of it.

  • HMtheJJ

    Posted Jan 29, 2008 3:24 pm PT

    I call zaphod_b poor and unedcuated!!! for some reason you think STock market is easy as buy and sell, what a 123 eh? then how come you are not rich. "just poor thinkin clever, funny they can't find a way to make more money" lol and Geezzzeee lol, time wasting here to educate ppl, if stock market is as easy as you see it is, it wouldn't be stock market anymore...

  • zaphod_b

    Posted Jan 29, 2008 2:59 pm PT

    Seems to me that this is just a result of the short-term and day-traders making a fast buck at Nintendo's expense, but that's how the market goes.

    Also, I call BS on HMtheJJ.

  • boobush

    Posted Jan 29, 2008 2:43 pm PT

    They didn't go down because they're not selling, it's because the money is devaluating. Jeez, devaluation is hitting worldwide, but it could hit Eastern Asia harder.

  • diablobasher

    Posted Jan 29, 2008 2:18 pm PT

    Lotto lout? I think so. LRN2SPELL.

  • HMtheJJ

    Posted Jan 29, 2008 2:11 pm PT

    pencilpusher69, clearly you dont know how to make money!!! lol my sports are more exepnsive than golf, motor racing, flying planes... golf is boring and a lazy excuse to tell ppl you are "playing sports" lol sad!!! and TRUE

  • HMtheJJ

    Posted Jan 29, 2008 2:08 pm PT

    D3j1k0 , i bought it cuz i know many ppl would buy it, but give it a year or two, it would eveutally stop, thus i sold it which only proves that i am smart, as for you, i dont see you have any problem understand my post, yet pickin on those non important BS issues here, i'd suggest you to get a life, and make some money to we can be in the same class then we'll talk about things that you have no access nor even dreamd of!!! " this is just poor ppl thinking clever, funny why you can't find a way to make more money" Sad AND True!!! lol

  • R3DN1N3

    Posted Jan 29, 2008 1:58 pm PT

    I just love it when we all suddenly transform from regular gamers to stock exchange experts on a whim.
    Too bad the industry hasn't hired u all.
    If they did, things would be looking up.............not.
    So u heard a few terms your economics teacher said just before u fell asleep, now u all think u can predict the market?!
    PLEASE

  • HailToTheGun

    Posted Jan 29, 2008 1:20 pm PT

    Nirvana0511:

    While I would agree with you on many points, I also thing your statement begs the question: what 6 games on the Wii are some of the "greatest games of all time" that you have ever played. I agree that a lot of them ARE truly great, but 6 out of a handful of many on one system IS unheard, as you said, except for (also, as you've said) maybe on the SNES, definitely on the PS2. The PS2 has been the most successful and best selling system to date - and is still holding strong till 2010. Arguing or denying that fact is just plain ignorance. BUT...being a Wii and a 360 owner myself, I can easily say the 360 has threefold as many "great" games as the Wii. That's courtesy of the fact that it's been out a year longer than the Wii has. And, you're saying the Xbox 360 doesn't have anything original...but...what does Nintendo have? Mario, Link, Samus, Donkey Kong? Every single one of those games are rehashes in one way or another; Galaxy may be the most unique in the Mario series, but it's a Mario game through-and-through. Need I go on?

  • pencilpusher69

    Posted Jan 29, 2008 12:01 pm PT

    HMtheJJ "The report also mentions that some large investors sold off significant amounts of Nintendo stock, cashing out on the large gains the company has made over the previous years." there you go , the biggest reason why it slided and the biggest reason behind the sell out is knowing the "charm" of Wii will be over soon."

    Obviously you are not a golfer.

  • D3j1k0

    Posted Jan 29, 2008 11:53 am PT

    HMtheJJ, If you think the Wii is so horrible and that the masses will begin to think that too, why did you buy stock in nintendo? (I'm assuming you bought it after the Wii was released since the gamecube sold so badly) And don't call people stupid when you make so many errors in 1 paragraph

  • HMtheJJ

    Posted Jan 29, 2008 11:02 am PT

    Vorknykx, u r correct, Godzilla is not Green, but hey what do you know, he is crazy, and two guys thought the same thing, just how crazy ppl can get to to be fanboy even tho they know what they believe in is a big LIE. kinda like HD DVD fanboys! now they are taking responsibilities for what they;ve done, soon will the THESE ppl who are cheering for Wiis. btw have you seen a funny Wii pic which the two i, i are having pooky pooky in the pic, very funny also educates ppl it's a Piece of S.

  • Nirvana0511

    Posted Jan 29, 2008 10:57 am PT

    All these people trying to dis the Wii are crazy. I doubt many of them have played it. I've been a gamer a long time. And we are in the the second pinnacle of gaming (the other being the SNES, SGEN era). I've owned almost every system that has come out since The Sega Master System (I never owned a Jaguar, TG-16, or Saturn, but not many did to be honest) and I am going to be buying a PS3 this weekend. Now it is worth it to buy one, the fools who bought one from the jump (come on admit it's line-up has been weak up until november) I feel bad for you, as Sony has always had a lackluster game selection in it's first year and the trend has not stopped. But on to my point, I'm a real gamer. I'm not a graphics hound, who would substitute visuals for gameplay or story. Gameplay and/or a story is essential. It's like a movie, Star Wars: Episode 2 had amazing special effects, but anyone with common sense is gonna say The Empire Strikes Back is better. I have 16 games for the Wii, ALL OF THEM ARE GREAT. 6 of them are some of the greatest games I have ever played, No I'm Not Kidding. Over 17 years of gaming and 6 of the greatest games I have ever played are on one system that has been out a little over a year. That is unheard of in gaming. Even the Super Nintendo, the system with more great games than any other system.......did not accomplish this. And the Wii, did not have to take away from the Gameplay of it's games to make a more realistic reflection on a tree in the distance to accomplish this.

    Games are what makes a sytem impressive, Look at the 360 which I also own and which I also love. But it doesn't have as many great games as the wii, that's a fact. It has 4 Amazing games that are worthy of putting on a top 100 of all-time list. But are they original? NO. It's sad to say, they are rehashes. Great games, but rehashes.

    But it's not about being better than some people fail to realize, it's about the experience. I can something on the wii that I can't get on the 360. And vice versa, I can't get great online on the wii, I know that, everyone with ounce of sense could tell you that. But the one thing I can get on the Wii that I can't get on the 360 and PS3 is originality in terms of gameplay. Try No More Heroes, or Metroid Prime 3 if you don't believe me.

    If Halo 3 had Metroid Prime 3's controls, that would be one original-amazing game. There is no other way to play a first person shooter now. It's too perfect.

  • Get_Shorty

    Posted Jan 29, 2008 10:06 am PT

    Aww yea I sold my stock in November and now I can buy and sell Nintendo.... I wish.

  • HailToTheGun

    Posted Jan 29, 2008 9:04 am PT

    Let me just list off a few Wii '08 titles to add to your supposed "weak Wii '08 lineup": Super Smash Bros. Brawl and Wii Fit (either of which I predict will out-sell any of the Halos, SSBB especially.) No More Heroes, which was recently released and is fairing just as well in the over-all approval of critics as Call of Duty 4, Assassin's Creed and Halo 3. Final Fantasy Chronicles: The Crystal Bearers, which in some ways looks more promising than FF13 in that it seems the developers aren't focused on appealing to the graphic-whores out there and are staying true to what FF does best - gameplay. Okami, while just a port, was one of 06's most highly praise game, and its home belongs on the Wii. Mario Kart, while likewise another reinvention of the original, will surely drive sales through the roof with its online capabilities and steering wheel. Then there's also the development of Spore and Sadness, two games I am especially looking forward to, but neither of which are far along in their development (the latter, especially). Not a great '08 lineup? Yeah...ok.

  • HailToTheGun

    Posted Jan 29, 2008 8:56 am PT

    People who say the Wii doesn't have "real" games are exactly like the liberal fundamentalist crackpots bashing video games for their vulgarity, violence and as Mass Effect proved, extremely pronographic sex scenes. -sarcasm.- I wonder how you people define games. It seems the console rebates will never end, and likewise they shouldn't. Competition = greater demand. Criticize anything as much as you want, but as I've said before, if you don't have logical (opinionated) reasons as to why you're criticizing it, instead of just calling it "not a real game," keep your fanboy mouth shut and go play Halo.

  • pigilikepoe

    Posted Jan 29, 2008 7:43 am PT

    Once a stock gets high its harder to go higher. Its basic economics. Trust me the Nintendo stock will rise again.

  • wiifan001

    Posted Jan 29, 2008 7:33 am PT

    Meh... only a minor setback. Nintendo will bounce back from this.

  • brosim1104

    Posted Jan 29, 2008 7:07 am PT

    how can i buy some of those from greece???? I suck in maths lol

  • Devvy01

    Posted Jan 29, 2008 6:49 am PT

    Everyone's shares are being hit...

  • mmogoon

    Posted Jan 29, 2008 6:06 am PT

    A someone else said - Buying Opportunity? Will they shoot back up? Hmm

  • Jokul

    Posted Jan 29, 2008 5:48 am PT

    Cool news, might be worth buying some Nintendo shares while they are lower price than before.

  • Azwhtknight

    Posted Jan 29, 2008 5:09 am PT

    It has nothing to do with product sales. Buy low sell high! If a stock is doing exceptionally well (like this one has been recently) then people are going to take the opportunity to make the money and sell the stock before they perceive it is going to go down, which in turn it does because of the people selling to avoid just that. Fluctuation is part of the market! The stock will bounce back! It might not peak so high again, but it will go up. My advice is to buy some now while it is on the downward turn so you can cash in later when it bounces back.

  • Vorknykx

    Posted Jan 29, 2008 2:06 am PT

    diablobasher:

    Godzilla is charcoal grey not green.

  • HMtheJJ posted Jan 29, 2008 12:40 am PT (does not meet display criteria. login to show)

    HMtheJJ

    Posted Jan 29, 2008 12:40 am PT (hide)

    "The report also mentions that some large investors sold off significant amounts of Nintendo stock, cashing out on the large gains the company has made over the previous years." there you go , the biggest reason why it slided and the biggest reason behind the sell out is knowing the "charm" of Wii will be over soon.

  • pencilpusher69

    Posted Jan 29, 2008 12:34 am PT

    jdt532 "Investors aren't stupid... Realizing the 08 wii game lineup isn't that good and that the wii buying craze wont last forever they probably figure wii demand will soon be going down."

    Funny, your comment wasn't what Reuters reported:

    "A Reuters report offered a number of possible explanations for the drop. Given that so much of the Japanese company's business comes from foreign markets, the report said analysts are concerned a stronger yen could hurt its earnings. The report also mentions that some large investors sold off significant amounts of Nintendo stock, cashing out on the large gains the company has made over the previous years."

  • HMtheJJ posted Jan 29, 2008 12:16 am PT (does not meet display criteria. login to show)

    HMtheJJ

    Posted Jan 29, 2008 12:16 am PT (hide)

    "jdt532" thank god someone has a brain and knows what is going on, don't use unstable stock market as an exucse, i dont see SONY is takin a hit, investors are doing the right thing cuz after X360 goin down with VERY few good games this year, Wii has almost nothing to offer, while all the ppl who are interested in this gimmick already bought one, the remaining REAL ppl who play REAL games would start buying REAL game console and with BluRay Won (89% of the market share last week according to NDP), it's only a matter of time.

  • jdt532 posted Jan 29, 2008 12:06 am PT (does not meet display criteria. login to show)

    jdt532

    Posted Jan 29, 2008 12:06 am PT (hide)

    Investors aren't stupid... Realizing the 08 wii game lineup isn't that good and that the wii buying craze wont last forever they probably figure wii demand will soon be going down.

  • kavadias1981

    Posted Jan 28, 2008 11:49 pm PT

    The stock market is up and down all the time. Thanks for telling us something new GS.

  • Zerosumgame

    Posted Jan 28, 2008 11:20 pm PT

    Nice reporting Brendan Sinclair, here is a cookie.

  • ctg867

    Posted Jan 28, 2008 6:59 pm PT

    You know, it'd be very ironic if people start backing off the Nintendo train because they doubt if the Wii and DS can stay, and be profitable, before Nintendo would even have the chance to do so.

    Though, it seems this is just stock related, and nothing serious, so we should all let it go.

  • grafkhun

    Posted Jan 28, 2008 6:54 pm PT

    no biggie, what 10 percent? peanuts.

  • TGFL

    Posted Jan 28, 2008 6:32 pm PT

    its a typical drop from the holidays. There usually is a drop from companies that just had a great season because people thing thats where thier stock shares will sell the best. More value+more demand=more selling.

  • Dryker

    Posted Jan 28, 2008 6:15 pm PT

    Not a buying oppurtunity. After the holiday spike, sell, sell, sell before it levels out. I don't see Nintendo growing TOO much larger or rather making as much as they had last year. The hype from the Wii will fade. It will still be a relative success, just not as strong growth-wise.

  • chubhold

    Posted Jan 28, 2008 6:08 pm PT

    buying opportunity

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