Lol @stock buyers not doing research before hand. Like they should of known how much of Pokemon Nintendo actually owns, also the profit sharing differences among apple/Google/niantic/ and the Pokemon company ( which itself is split between 3 companies gamefreak, Nintendo, and creatures Inc ) lol
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Nintendo Shares Plunge 17% After Saying Pokemon Gos Impact Is Limited
- Thread starter hongcha
- Start date
The cycle never ends.
Let's see you put your money in a stock and then see your reaction based on others' reaction based on the company of said stock giving negative news. Speculation is a bitch, and people just did what they thought it was best for their money.
I mean, the mobile platform and strategy has had an arguable impact on consumer culture but has any app by itself had any longstanding impact? The whole mobile strategy has been more of a throw away "burn bright then burn out" onto the next one model. The Pokemon brand itself was the draw and catalyst of the apps success.
Neoleo2143
Member
Well, yeah, that's what a high P/E ratio does.
I'd say it's common enough to be considered "a word". Language is defined by usage. But the problem is that it has the exact same meaning as "regardless" but with one extra syllable, so it's mostly useless, unless you're writing some metered verse.
Back on topic...yeah, the stock market is dumb. Honestly, I feel like the entire financial world is just a massive waste of time and resources, particularly the large number of intelligent, highly educated people who decide that moving numbers around to make certain people's large numbers even larger is worth dedicating their lives to.
What's wrong with buying their stock? It was low and people sold high. That's the point.
People who were smart did just that. It's always a speculation and decision based on what you think will happen.
CrAzY FiNgErS
Member
Exactly, Nintendo knew they were being overvalued and spoke up with the truth to be above board about the situation. The last thing they want is to be accused of driving up their market value from a game they are not 100% vested in.
vinnygambini
Why are strippers at the U.N. bad when they're great at strip clubs???
People saying investors are dumb make me pause.
Many publications mentioned that Nintendo will be making a killing based on Pokemon GO's performance. Nintendo could not take a back seat and let various professional publications continue that narrative. Now the stock has taken a beating because Nintendo clarified the complicated relationship that Nintendo has with The Pokemon Company and IP ownership.
Many publications mentioned that Nintendo will be making a killing based on Pokemon GO's performance. Nintendo could not take a back seat and let various professional publications continue that narrative. Now the stock has taken a beating because Nintendo clarified the complicated relationship that Nintendo has with The Pokemon Company and IP ownership.
shattyboombatty
Member
TIME TO BUY!
LizardKing
Member
Someone at Nintendo really fucked up in letting a dev use their IP with only a 13% stake in the game. They would never do anything close to that in the console space.
I've had Nintendo stock for almost 2 years now. The market crash deficit got erased over night, and I still haven't sold. Knew this would happen, especially since most of the stock speculation was like "Nintendo should make mobile games" completely ignorant of their plans to do just that. Probably gonna buy some more next week, since it's no longer double my original entry prices.
This is simply how the market works.
Some people decided to impulse-buy stock thinking that the Pokemon Go success (and Nintendo developing more mobile games in the future) would provide a huge growth opportunity for the company in the future and that propeled the share price up in an abnormal way.
A bunch of old shareholders are now selling thinking that it's unlikely that the price of their shares is going to get any better than this in the future and they're enjoying a good profit on their sale.
So the spike is nullified.
There's really nothing surprising but it's normal that you make headlines in both ways (when you're going quickly up and quickly down).
Some people decided to impulse-buy stock thinking that the Pokemon Go success (and Nintendo developing more mobile games in the future) would provide a huge growth opportunity for the company in the future and that propeled the share price up in an abnormal way.
A bunch of old shareholders are now selling thinking that it's unlikely that the price of their shares is going to get any better than this in the future and they're enjoying a good profit on their sale.
So the spike is nullified.
There's really nothing surprising but it's normal that you make headlines in both ways (when you're going quickly up and quickly down).
perfectchaos007
Member
Dat Pokemon GO bubble. Will Niantic's stock rise 17% tomorrow?
SinCityAssassin
Member
Niantic is not a publicly traded company.
(Even if you are joking, I've heard the question asked too many times)
The fun part if of course considering the implications of how far Nintendo's shares could plunge now. This noticeable downturn can easily trigger panic selling for Nintendo shares in general, as speculative investors quickly try to dump all their Nintendo shares. So that when all is said and done Nintendo's market value ultimately ends up worse than before the launch of Pokemon GO.
Complicated
Banned
Playing up the overbought nature of their stock or even just refraining from informing investors isn't something any company wants to do. At a certain point you get in trouble with regulators, but long before that becomes a possibility is the line between healthy sustainable growth and out-of-control short-term growth. Just look at a graph of Twitter's stock price to see what an app with enormous societal impact can turn into if you don't find a way to make money from it.
hydragonwarrior
Member
So they essentially lost everything they gained 3 weeks ago? Damn..
SinCityAssassin
Member
No, they're still higher than what they were 3 weeks ago. it's still basically double the value since 3 weeks ago.
Napalm_Frank
Member
Time to develop Pokemon Go 2 internally.
DarkConfidant
Member
It honestly didn't make much sense that Nintendo stock went up anything, rather than Alphabet stock.
It was over valued
It was over valued
SinCityAssassin
Member
The guy who didn't want a stockholder backlash for not saying anything sooner.
Palculator
Unconfirmed Member
It is a word by most understandings of the term, it's just getting ridiculed because the "ir" prefix is completely superfluous. I prefer the "correct" variant as well, but saying it's not a word is excessive.
The stock price should never have doubled. Hobby investors and people who know nothing about the gaming market saw all the Pokemon Go news reports and acted like they were getting into the ground floor of some small start up company.
Even if Pokemon Go pulled in $5M a day for the next year and Nintendo kept all of it (minus whatever Google/Apple take as their cut), Nintendo would see their annual revenue go up by about 1/3. Pokemon is most likely not going to pull in $5M a day for the next year, and as the OP states, Nintendo's cut is pretty minor. It would take 5-10 games that size to justify the crazy bump in stock prices/market cap.
Even if Pokemon Go pulled in $5M a day for the next year and Nintendo kept all of it (minus whatever Google/Apple take as their cut), Nintendo would see their annual revenue go up by about 1/3. Pokemon is most likely not going to pull in $5M a day for the next year, and as the OP states, Nintendo's cut is pretty minor. It would take 5-10 games that size to justify the crazy bump in stock prices/market cap.
D.Lo
Member
The share gain was pretty insane for just one thing. Wii/DS share gains made perfect sense since they were making $10 billion profit a year, this one was far too quick. Just investors being dumb I guess.
I don't trust Mr Macquarie Securities analyst though. It looks like he's just taken 30% off for Apple/Google, assumed 50/50 Niantic/Pokemon Company, then divided by three-ish for Nintendo's stake in the Pokemon company.
Through in reality they also part own Creatures Inc, have a stake in Niantic (who I highly doubt get 50% of the revenue anyway), and are the sole owners of all Pokemon trademarks. The game's revenue isn't that high to massively impact Nintendo (even if they got all of it and it's sustained it would only add like maybe 25% to their total), but no way they get only 13% of effective financial impact.
I don't trust Mr Macquarie Securities analyst though. It looks like he's just taken 30% off for Apple/Google, assumed 50/50 Niantic/Pokemon Company, then divided by three-ish for Nintendo's stake in the Pokemon company.
Through in reality they also part own Creatures Inc, have a stake in Niantic (who I highly doubt get 50% of the revenue anyway), and are the sole owners of all Pokemon trademarks. The game's revenue isn't that high to massively impact Nintendo (even if they got all of it and it's sustained it would only add like maybe 25% to their total), but no way they get only 13% of effective financial impact.
Smiles and Cries
Member
it was a house of cards at least now they can build on Animal Crossing's app
which is internal developed
which is internal developed
Langdon Alger
Banned
Pretty much.
Yeah, the real winners are those who sold their shares right after the boom.
Hobby investors don't trade nearly enough volume to produce such a dramatic spike in such a large company.
This is more likely the result of institutional investors realizing an above-expected surge in prices pending this game's release and feeling they might have overdone it, thus executing all the forward contracts they used to hedge their position (bringing then price down). This sort of corrective contraction is normal.
Stock price movements for "popular" companies for the general public (Apple, Google, Nintendo etc) get published by non-trade press. People who aren't well versed in the markets try to parse the information and come up with all sorts of strange explanations but this kind of swing would have gone unnoticed if it were the stock for a less mass-popular company.
Yea but how much did you have invested and at the same time afford to not cash out when the stock was speculated to dive?
I'm not talking about the stockholders that have insignificant sums invested, I'm talking about those bigger fish who had a lot to lose and panicked because of that.
Aren't they always?
Positive energy sure. What are the odds of Nintendo doing something smart to capitalize on that in a major way?
I knew this would happen. Anyone want to let me run a mutual fund?
Bamboo 竹
Member
So Nintendo is doomed again. Damn it.
This has pretty much nothing to do with Tulip Mania other than Nintendo and Tulip futures both being overvalued. Being overvalued isn't really rare.
And Niantic.