Nintendo announced on Friday that the tremendous success of Pokemon Go would have a limited financial impact for them. There was a little bit of confusion among investors who, apparently, thought that Nintendo was the sole developer and publisher of Pokemon Go . As anybody who can Google could easily discover, Pokemon Go didn’t come from Nintendo. It didn’t really come from The Pokemon Company, either. Pokemon Go was developed by Niantic, and Nintendo revealed that it has “an effective economic stake” of about 13% in the app. That’s when shit hit the fan.
Nintendo’s market value had shot up by over $11 billion last week as a result of the Pokemon Go frenzy, and this was a move to even things out ahead of its first-quarter earnings report this Wednesday. In a press release Nintendo stated that it would not need to revise its annual forecast due to Pokemon Go ‘s success, and as a result its stock sank 18% – the maximum allowed in a single day in Tokyo. This wiped out about $6.7 billion in market value. The news may seem shocking to some, but for those who know the stock market (and for Nintendo), this was expected. This is why you never invest in a single company, people. Place your investments in some good growth stock mutual funds instead.
Source: Bloomberg