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Nintendo stock falls 9.3% over lower Switch console sales target
- Thread starter SRO7
- Start date
I have to wonder what their strategy was when they set their forecast at 20 million. Even if they thought they would hit 20 million, what would have been the downside of being a little more conservative?
Normal market reaction.
Stock holders don't always have a great deal of knowledge about a sector. They see a black and white target and that target hasnt been met. They dont always see the colour around that where Switch sales are actually still amazing regardless of that goal.
Stock holders don't always have a great deal of knowledge about a sector. They see a black and white target and that target hasnt been met. They dont always see the colour around that where Switch sales are actually still amazing regardless of that goal.
But Nintendo had a bigger drop.
So, Sony is less DOOMED than Nintendo.
Was it really even disappointing? Their estimates were pretty crazy high. The numbers they hit were also pretty crazy high. I can't imagine anyone being upset with 17-18million sales.
Expected due to reactionary nature of short-term investments and low confidence in big tech companies in the last few months.
This is slightly inaccurate. We knew about the lowered guidance a day before, and the US-traded stock fell ~5% in response. At the open of the Japanese markets, stock was also down ~5% at the start. It was only in response to what investors perceived as a disappointing management policy briefing that the stock traded down further to -9.3%.
investors are fickle, if you lower your estimates even if you're doing great, some will still see it as a sign to sell.
The Stock market is one of the most stupid things ever created. They don't grade the companies on how well they do but how well they might do in the future. No matter how great their profits are today, they are stupid enough to expect them to get worse in a year where Pokemon and Animal Crossing are scheduled to launch.
And this is why it's important to establish reasonable sales targets -- better to exceed than fall short.
Oh lord, I had so much faith in Nintendo over the years. But this time, THIS TIME it's different. Nintendo is DOOMED.