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Nintendo Shares Plummet After Investors Realize It Doesn't Actually Make Pokemon Go (theverge.com)
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.
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.
This signature is false.
If the Business and Economic sector weren't filled with stupid people; and economics and business management education even in the top Universities weren't filled with bad teaching (either by design or by pure stupidity) and too much philosophizing and misinformation,
we wouldn't be having cycles of economic crisis constantly happening. The worst is the education part, because people put more credence on ideological and theorizing bullshit rather than complex situational analysis (because following a preferred guidebook as if it were a holy book is easier than actually turning on your brain).
This is a perfect example of that, business and economic "experts" choosing guidebooks over analysis.
Nintendo has lots of worthy IP that could be made into mobile games, using Mario, Link, etc. There's plenty of potential left at Nintendo if they simply move beyond console gaming.
Remember kids, if you're not paying for the service, YOU ARE THE PRODUCT THAT IS BEING SOLD.
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.
Automated trading only reinforces the problem, since it magnifies emotionally driven market conditions.
I'm surprised so many people didn't see this coming. The share price was totally out-of-whack with reality. I'd have shorted the hell out of Nintendo's stock (if I had money and the means to do so). Surely, someone with money did? Anyone here?
“It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.”
The stock market isn't rational. It never was.
A company lays off people the stocks go up. Not because the company is restructuring to something new, but because that is what people are told is how it works. Layoffs raise the stock prices. So you hear about layoffs you run to try to get the price before it rises more.
If something is so important that you feel the need to post it on the internet... It probably isn't that important.
But I got "minor text fixes" today.
Brilliance without wisdom, power without conscience. Ours is a world of nuclear giants and ethical infants.
Would that be a sufficient condition? It's not like only business college graduates are influencing the economy, most of the economy is about (business-)laymen doing things.
Ezekiel 23:20
A %17 pullback after doubling? seriously, that's not hardly a plummet
(If at first you don't succeed, do it different next time!)
Did they really jump-ship for that reason? Nowhere in the game is Nintendo even mentioned. I never did understand the stock jump with Nintendo, though. I figured if anything, Pokemon Company, Game Freaks, or Niantic would be the ones that would skyrocket (assuming they're tradeable companies).
Now I'm seriously confused as to how the stock market works. Is it really full of that many idiots that just throw money at anything without doing ANY research beforehand? The only real tie that Nintendo has with Pokemon is their tie to The Pokemon Company, so why didn't people jump on those stocks?
The stock market is insane. I never understood why the market would shoot up or down in a matter of hours based on some transient event. I blamed it on the stupidity of traders and their shortsightedness. That isn't completely wrong but then I read about our favorite people, hedge fund traders, having to make large short-term profit to stay alive. (It would be better if they all disappeared, I think, but that's another discussion.)
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.
The stock market isn't rational.
^^^ This is the single most important thing you can learn about the market if you intend to invest in stocks.
The market isn't rational, it has virtually no predictable cause and effect, and it's subject to the whims of forces beyond anyone's ability to forecast.
Just cruising through this digital world at 33 1/3 rpm...
I don't know who gave this analogy:
The stock market is like a bet on the outcome of a beauty contest.
You see all the beauties, and probably can easy pick your favourite, however: you have to bet whom the jury will choose.
Betting who the jury will choose, is a complete different thing than deciding which is the most beautiful or agreeing with friends at a table about the three most beautiful ones.
Cost free eBook I read (by iBook/Kobo/Amazon/ObookO/Gutenberg etc.): "The Green Odyssey" by Philip Jose Farmer.
Curious if you bought Cyanongen, Inc (or whatever it's called)?
Nope. I have evaluated trading, and have found that it's not for me. I did it for a few months, and didn't like the results. Compulsive reading, trouble sleeping, and a return of 10% per month wasn't worth it. It's so much easier to get a good salaried job and put 10-20% of that in mutual funds. The stress is zero. And the returns match the market. It might delay the date at which I can retire completely, but I'll certainly live longer.
I have a friend making good returns playing the news. Wait for something to hit the news, then buy on bad news. never sell short, never use options. The market generally over-reacts. Stay in the market in something like Google or Apple. You need the money in the market because the market is constantly on an upward trend. Because individuals are last to get the news, the reaction at the time she gets the news is bad, the others are already selling out of the falling stock. Her orders to sell her "base stock" then buy the target stock are slow. By the time she gets a buy of the target stock, it's near the minimum, and the investors start buying back in. She gets a jump as people buy back in after the dip recovers. Beats the market consistently.
Learn to love Alaska