Nintendo shares plummet as investors find out it doesn't make Pokémon Go

Investors scrambled to buy Nintendo stock after the release of Pokémon Go saw millions of players worldwide fire up the app while out and about to catch their favorite Pokémon. Now shares in Nintendo have fallen after the company revealed the game would have limited impact on the bottom line. That's due to the game being developed by Niantic, which Nintendo holds a stake in alongside other companies.

However, as reported by the BBC, shares are still up considerably since Pokémon Go was released on mobile platforms.

"Even with the decline, Nintendo shares are still up 60% since the release of Pokemon Go on 6 July. The sharp drop was the biggest decline since October 1990, leaving the stock down by 5,000 yen - the maximum daily limit allowed. The gaming company is due to report first-quarter results this week and said it did not plan to revise its earnings outlook for now."

Some analysts believe investors have overreacted to Nintendo's statement, while others are clearly concerned about the room for growth with Nintendo's limited hold on Niantic and The Pokémon Company. That said, it's a strange move, especially when one considers this isn't revelation exactly news to anyone. The company's earnings report is expected to be released on Wednesday.

  • Well, that was a short lived (Poke-stock) bubble.
  • Guess they caught them all already.
  • Nintendo doesn't make much of anything anymore. The writings on the wall with that one.
  • I mean, do investors even research anything? When you first launch the app, it says Niantic. There is no mention of Nintendo anywhere in the app or website.
  • I was about to say the same thing, there is no mention of Nintendo what so ever so i never understood why Nintendo stock skyrocketed in the first place, but you Gotta love how they sat their and kept their mouths shut and let the money roll in without correcting anyone on the fact that they had nothing to do with the game :)
  • Hmm, Nintendo own 30% Niantic and own Pokemon brand? Right? Sent from the iMore App
  • Nintendo owns 1/3 of the Pokemon Company and Google still owns part of Niantic. Either way, Nintendo still profits. I don't understand how this would worry investors when Nintendo makes money off of the Intellectual property rights as well as merchandise and franchising local businesses with official Nintendo products. Sent from the iMore App