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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.
The market corrects for it by brutally penalizing those who make bad decisions and rewarding those who make good ones.
If only that were true....
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If you post as Anonymous Coward, don't expect a reply.
The market DID penalize all of those. The government bailed them out.
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.