Nintendo saw a significant increase in profit in 2020, resulting in an increase in the value of the shares . In 2021, however, the situation was reversed, as the demand for consoles decreased. Now, via a Bloomberg report, we can see that the Big N continues to decline in value as large investors sell their stake.
This week, Nintendo’s shares dropped below 50,000 Yen (approximately € 389) , for the first time in 2021. According to Bloomberg, this is also caused by the sale of Cathie Wood and their trading company Ark Innovation ETF. Ark has been decreasing its stake in Nintendo since last February, when there was a 28% drop in the value of Nintendo’s shares.
Bloomberg also reports CLSA Securities Japan Ltd analyst Jay Defibaugh, who changed the sell valuation on the Nintendo stock last week, dropping two levels from ‘buy’ to ‘underperform’. He said the Switch is “at the height of a multi-year slowdown,” anticipating that profits will continue to decline until 2024.
In addition to the fact that 2021 sales are down from the boom of 2020, there are also analysts disappointed with the update of the new OLED model, clearly with the belief that Nintendo needs bolder moves to grow its business.