Market is frustrated with Pokémon Go and Nintendo loses about US$ 6.7 billion in the stock market

in #money8 years ago (edited)


"Pokemon Go" has become a global success. Played by millions of people worldwide, the application in wich you can use a smartphone to capture Pokemon in virtual reality is an matter everywhere, but above all, it is the most popular game in Android.
After the release of Pokémon Go, success was reflected in the markets, and the action of Nintendo soared 93% in 7 sessions. The problem is that three weeks after the game being populer between entire countries, the shares of Nintendo began to fall.
Only on Monday (25), the company's paper collapsed 18% in the Tokyo stock market, the biggest drop allowed for an action in intraday in the Japanese market. Talking about money, the impact was 708 billion yen, or US$ 6.7 billion.

The reason for this drop was explained by the company in a statement released to the market last friday after the closing of the Japanese stock market. As stated, Nintendo does not own Pokemon Go, so that the revenues of the game come to it diluted for their participation in Niantic and Pokémon Co.
So, according to an estimate of analyst David Gibson from Macquarie Securities, Nintendo has an economic stake of only 13% in the app.
That is, much of the shot from Nintendo came from a mistaken belief of some investors that tought a much larger part of the app revenue - obtained from the purchase of in-game items - would go to the company's results. In reality, the game for mobile phones that should exceed US $ 4 billion mark by year revenue, surpassing even the Candy Crush Saga, is almost a footnote in the financial statement of the company.
However, the shareholder of Nintendo has not only reason to cry, since the success of Pokémon Go opens an interesting door for the company to pass to invest in the gaming market for smartphones. The initiative for this has already begun with the partnership with DeNA, which should bring games from the franchises Animal Crossing and Fire Emblem. In addition, with 10 million Japanese downloading the Pokemon Go only at the launch of the game in the country on Friday, who knows this footnote does not end up surprising and increasing the company's revenue? Remembering until now the game was not yet launched worldwide.

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Greed can be quite frustrating!