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Sunday, February 28, 2021

Nintendo’s shares plunge after investors realise they don’t make Pokemon Go

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Following the release of Pokemon Go the company’s shares rocketed to levels not seen since the 1980s. But now, after admitting on Friday that the financial impact on the company from Pokemon Go will be low, stocks have plummeted at a rate not seen since 1990.

Bloomberg report that at one point the stock sank 18%, wiping out around £5 billion in market value.

It follows Nintendo’s stock almost doubling after Pokemon Go’s release, despite the Kyoto-based company having an economic stake of just 13% in the app, according to Macquarie analyst David Gibson.

The firm predicts increased profits this year and has factored in the upcoming release of the Nintendo Pokemon Go Plus smartwatch to its forecast. Its first-quarter report, which ended before the release of Pokemon Go, is to be published on Wednesday.

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