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Nintendo Co Ltd. (NTDOY)
Nintendo stock drops over 5%
Nintendo stock drops over 5%
Bloomberg - March 3, 2008
Submitted by alexanderpas (952) at 7:36AM PST on March 3, 2008
“Japanese stocks fell the most in a month on concern fallout from the U.S. mortgage market crisis is spreading to Japan’s consumer lenders and a U.S. recession will extend the dollar’s decline against the yen. Nintendo, which sells more than twice as many Wii game machines in the Americas as in Japan, lost 5.8 percent to 50,200 yen in Osaka trading.”
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2Just_Ben posted on Nintendo Co Ltd. (NTDOY) at 5:53AM PST on March 4, 2008. RE: Nintendo stock drops over 5%@GoblinMerchant,
Or its just that banks and others just need cash to get their cashflow going again after a big round of losses. Things like that can drive shares down :)[ Oracle ] [ Level 21 ] [ Rank: 112 ]bids
4GoblinMerchant posted on Nintendo Co Ltd. (NTDOY) at 10:02AM PST on March 3, 2008. RE: Nintendo stock drops over 5%@Just_Ben,
Video games are generally considered economically inelastic. Video games are cheap alternative forms of entertainment (much cheaper than taking the family to Disneyland). However, it seems like this is less and less the case. ATVI was the only stock I know of that fared well through this holiday season (and this is largely from the Blizzard merger). ERTS is just coming off a 52-week low.
The market may be thinking video games are a bit elastic with the economy and demand will decrease as the US economy continues to weaken.[ Guru ] [ Level 21 ] [ Rank: 260 ]bids
2Just_Ben posted on Nintendo Co Ltd. (NTDOY) at 8:33AM PST on March 3, 2008. RE: Nintendo stock drops over 5%@alexanderpas,
And any other big Japanese company lost also around 5%, the Nikkei lost 4.5%. So while Nintendo is a bigger looser than others it is still in line with the general market.
I think the bigger thing is the weak $. While this is not totally new, it seems it still loosing value against other currency (Yen, Euro). Normally thats a good thing, helping the US economy. But currently it seems it will help more the Chinese economy.
It does mean that price cuts are getting unlikely in the U.S and a drop more likely in Japan and Europe.
[ Oracle ] [ Level 21 ] [ Rank: 112 ]bids
22alexanderpas posted on Nintendo Co Ltd. (NTDOY) at 7:36AM PST on March 3, 2008. Article: Nintendo stock drops over 5%“Japanese stocks fell the most in a month on concern fallout from the U.S. mortgage market crisis is spreading to Japan’s consumer lenders and a U.S. recession will extend the dollar’s decline against the yen. Nintendo, which sells more than twice as many Wii game machines in the Americas as in Japan, lost 5.8 percent to 50,200 yen in Osaka trading.”[ Speaker ] [ Level 10 ] [ Rank: 952 ]
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I'm also not really convinced that videogames are economically inelastic or recession proof. I think in the past many people believed in the theory that in hard times people would cut spending on their children last, so toy companies, teen retailers, and videogame companies would be relatively safe, at least for a while. However, we know that most gamers are now adults so that thinking shouldn't apply for videogames anymore. That said I still own shares of NTDOY.