Nintendo stocks have risen to over ¥45,000 per share. Just yesterday (19 February 2018) the stocks hit a high of ¥46,790 per share. So what is that in our South African moola?… over R5000 per share! Now to put this into context, Apple, one of the biggest and best known companies in the world, is currently sitting at about $172 (around R2015) per share. Yes, it is true that the Rand has been particularly strong lately and Apple has been in a downward spiral. However, the comparison really highlights the point – Nintendo is flying – it last did this well almost 10 years ago.
Courtesy: Google Finance * MSN Money * Reuters
That was the era of the Wii’s big success. The Wii went on to sell over 100 million consoles worldwide. Previously, we reported on a Kotaku UK article that explained that the Switch is currently outselling the Wii at the same time in its life-cycle.
According to an article in the Financial Times, Leo Lewis and Kana Inagaki said:
Nintendo is Japan’s richest company, and by some estimates is sitting on nearly ¥1tn ($9.4bn) of cash reserves. It has sold more than 12m units of the Switch console since its launch last March.
So what do we glean from all of this? Well, according to the Financial Times article mentioned above (and the following line should be read in a cool, yet nerdy accountant’s voice) we learn that, “Nintendo is once again facing calls from investors to split its stock in order to broaden its shareholder base, because current share prices mean that the average retail investor is priced out of the market due to the 100 share minimum trading limit.”
Wow… now that was a lot of very important financial information!
In reality, though, what does it mean for you and me? Well, basically, Nintendo has a whole lot of new money to throw around. A whole lot of money that we assume they will be throwing at their own games and who knows even their next console. Now, that can only be good news right? I mean, the last time they had this much money we got… the… WiiU. Hmmmm. Now wait a minute…