Nintendo stocks plummet - Pokemon GO isn't making enough money

This should not come as a surprise. Their stock was artificially inflated after Pokemon Go launched due to exposure of the company. All of a sudden people were talking about Nintendo and a Nintendo property. But, Pokemon is similar to a business unit of the company; an individually operated business that Nintendo has a majority share in. Essentially, market players hedged on the popularity and social aspects of Pokemon Go in stead of on tangible assets and predictions. They created a bubble to make a shit ton of money. Imagine if you invested in Nintendo at the start of Pokemon Go, your investment would have seen an almost 50% growth in just 2 weeks. Imagine big investors packed in R10 million into that investment, that means they would have made R5 million in two weeks. Freaking savage! But, it was all created on top of a bubble, a bubble in over inflated stock values based on intangibles. This is super dangerous for Nintendo, so I don't blame them for declaring the impact of Pokemon Go before any financial reporting. It just simply means they are tempering people's expectations. Imagine if they only declared this info at an investors call, my word, their stock would hit rock bottom, or well as far as Nikkei would allow it to fall. That would be much more disastrous for the company than the hit it's taking now. All the stock is doing to decreasing to more assured levels. Levels that can be maintained by the companies financial performance.
 
DieGrootHammer said:
This should not come as a surprise. Their stock was artificially inflated after Pokemon Go launched due to exposure of the company. All of a sudden people were talking about Nintendo and a Nintendo property. But, Pokemon is similar to a business unit of the company; an individually operated business that Nintendo has a majority share in. Essentially, market players hedged on the popularity and social aspects of Pokemon Go in stead of on tangible assets and predictions. They created a bubble to make a shit ton of money. Imagine if you invested in Nintendo at the start of Pokemon Go, your investment would have seen an almost 50% growth in just 2 weeks. Imagine big investors packed in R10 million into that investment, that means they would have made R5 million in two weeks. Freaking savage! But, it was all created on top of a bubble, a bubble in over inflated stock values based on intangibles. This is super dangerous for Nintendo, so I don't blame them for declaring the impact of Pokemon Go before any financial reporting. It just simply means they are tempering people's expectations. Imagine if they only declared this info at an investors call, my word, their stock would hit rock bottom, or well as far as Nikkei would allow it to fall. That would be much more disastrous for the company than the hit it's taking now. All the stock is doing to decreasing to more assured levels. Levels that can be maintained by the companies financial performance.
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Jip, Pokemon was cool again and suddenly everyone wanted to be part of Nintendo again, because of this sellers could inflate their prices and from there things went out of control with massive gains. Now because of the high stock price everyone is looking to sell which is going to increase supply, but the hype is dying down so demand is down which pulls the price down. Net result, stocks are returning to the actual value and not the rush buy value from last week.

But as far as I know the net effect is still positive, but the price could still fall a bit further.
 
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