Key insights
- The post discusses Nintendo's current situation, highlighting the success of Switch 1, slowing Switch 2 sales, and expansion into film and theme parks. It notes a recent stock drop due to RAM shortages and tariffs. The author is optimistic about the future, anticipating increased sales with new games and a potential Switch 2 Lite. Overall, the post presents a mildly bullish outlook for Nintendo, but the direct impact on the broader US equity market is limited.
Curious to get people’s thoughts on Nintendo stock (NTDOY). The company is in an interesting place right now:
- Switch 1 is on track to becoming the best selling console of all time (155.37 mil units sold as of last official report) * Switch 2 was the fastest selling console of all time in its first few months, but they’ve now slashed production by 30% due to slower holiday sales * Mario Galaxy movie is on course to reaching 1 billion at the global box office and they seem to be really getting into the film sector with the live action Legend of Zelda movie just wrapping shooting recently - they have some of the most recognizable IPs of all time so there is quite a lot of potential here * Shifting more focus to theme parks and physical sales - their own nintendo.com site recently started allowing eshop funds to be used on physical games on top of other merchandise
Over the last year the stock has dropped down significantly partly due to RAM shortage increasing production costs, tariff situation, slowing Switch 2 sales, etc. Personally I think that they have some of the best games ever and once the Switch 2 finally gets its system seller (mainline Mario/Zelda), and possibly a more affordable Switch 2 Lite, the sales will increase.
So with all that said what do people think of the stock right now and just the company and its future outlook in general?