News

Nintendo shares recover following loss warning

Share price back at late December prices

Nintendo's share price has begun to recover after it plummeted in response to flattened Wii U sales projections.

Following last Friday's announcement that Nintendo had slashed its annual Wii U sales forecast from 9 million to 2.8 million units - a dramatic reduction that will swing its full-year results from profit to loss - investors began to trade their stock at far lower prices.

Zoom

However, as the three-month graph above shows, Nintendo's share price has quickly recovered from its dip and is back up from its low point of $14.53 per share earlier this week to a current price of $16.36.

Monday's share decline was the company's biggest drop since September and wiped $1.2 billion off its market value.

Nintendo's lowest value this week was far from its lowest in history. For example, in February 2013, following poor initial Wii U results, shares sank as low as $11.39.

However, the current price is still a far cry from the $76.87 high point the company's value reached in November 2007, a year into the Wii's life.

Recently Nintendo president Satoru Iwata, who has no plans to resign, said: "We are thinking about a new business structure. Given the expansion of smart devices, we are naturally studying how smart devices can be used to grow the game-player business. It's not as simple as enabling Mario to move on a smartphone."

Related
Blog

Nintendo must reinvent itself

OPINION: Dismal Wii U sales are just a by-product of deeper problems, writes Rob Crossley

Comments