Company stock prices might no matter to gamers, but they’re a good indicator of where a company’s long-term health may be heading. For company’s like Nintendo, it’s a sign that investors believe things are heading in the right direction and that the company is fulfilling its targets. So it’s good news to report that Nintendo’s share price have jumped almost 20% since the Nintendo Switch launched last month.
The boon for Nintendo means investors are confident in the consoles long-term prospects, with recommendations to buy shares indicating support long-term. One such investor, Jefferies equity analyst Atul Goyal, expressed his approval of the console and recommended investors “Buy” into Nintendo stock.
In particular, Goyal points to Nintendo’s first-party line-up of games;
“<Nintendo> has a very strong First party game pipeline (Zelda, Mario Kart, Splatoon, ARMS, Super Mario).”
“It is also attracting some good third-party games (Minecraft, Sonic, Disgaea, Monopoly etc.).”
“We believe that its IP treasure trove is unparalleled and this could be monetized in several ways.”
It’s all positive press for Nintendo Switch, which smashed the company’s launch weekend sales record in Japan. The company reportedly sold 330,637 units in the country – with 2.4 million consoles shipped at the time of writing.
Nintendo Switch has been a huge hit for the company since launching. The critical success of The Legend of Zelda: Breath of the Wild has helped bring in early momentum for the console – with the game already being touted as a highlight of the year.
It’ll be interesting to see how Nintendo continues to develop its strategy moving forward. With Nintendo Switch doing so well – how long can the company continue to support it’s ageing Nintendo 3DS console?
What do you think – is Nintendo on to a winner with it’s Switch console? Can it keep that momentum going as the months pass?