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Nintendo Shares Plummet After Investors Realize It Doesn't Actually Make Pokemon Go (theverge.com)

Posted by msmash on from the reality-check dept.

Sam Byford, reporting for The Verge: Nintendo shares have skyrocketed since Pokemon Go's release and instant transformation into global cultural phenomenon, but they fell dramatically today after investors realized that Nintendo doesn't actually make the game. Nintendo put out a statement after the close of trading on Friday pointing out that the bottom-line impact will be "limited" as it only owns 32 percent of The Pokemon Company, and that revenue from the game and its Pokemon Go Plus smartwatch peripheral have been accounted for in the company's current forecasts. Pokemon Go is a collaboration between The Pokemon Company and Niantic Labs, the developer who previously created the similar AR game Ingress as part of Google. This apparent revelation caused shares to plummet in Monday trading, with the stock dropping 17 percent at one point, representing about $6.4 billion in value; as Bloomberg notes, Tokyo stock exchange rules prevent share prices from moving more than 18 percent in a single day.

4 of 192 comments (clear)

  1. Re:Breaking news: investors are idiots by Anonymous Coward · · Score: 4, Informative

    The real news here isn't really about Nintendo or Pokemon.

    The real news is about investors pumping billions into a company without even the most cursory research.

    Investors, by definition, would have sought enough information to know this. The trouble is with the traders, including the automated algorithms that trade based on news wire feeds.

  2. Up, down, flying around by wonkey_monkey · · Score: 3, Informative

    It's still 60% above what it was on 7th July... but doesn't seem to be done plummeting yet.

    Just let them get Wii U Zelda out before folding, eh?

    Here's something for graph fans, since there wasn't one of the share price:

    http://abstrusegoose.com/191

    --
    systemd is Roko's Basilisk.
  3. Shares falling %17 after growing nearly %100, meh by Timmy+D+Programmer · · Score: 3, Informative

    A %17 pullback after doubling? seriously, that's not hardly a plummet

    --


    (If at first you don't succeed, do it different next time!)
  4. Re:"Business People" by Anonymous Coward · · Score: 2, Informative

    Well, I won't dispute the market is insane, but the huge money is made on short-term variance ("derivatives"), not long-term tendencies. So, the more it floats, the more money "the right people" makes.

    Which actually means the market is a travesty that should be replaced by something else that only operates in the long term, but there you have it.