Bloomberg: Nintendo Market Value Passes Sony on Pokemon Go Frenzy

#1
http://www.bloomberg.com/news/artic...-value-passes-sony-on-pokemon-go-frenzy-chart

Nintendo’s value jumped above $39 billion Tuesday in Tokyo, topping Sony, and extending a run that began after the app become a viral phenomenon.
The stock continues to rise after over a week of record growths during Pokemon Go's release. Now Nintendo's market value has officially passed that of Sony's entire corporation. Personally, as long as Niantic keeps updating and fixing the app to make it fresh and keep recurring spenders happy to spend, and that Nintendo can see how a western developer would go about gamifying a social experience (which can benefit the overall social quality of their upcoming Animal Crossing app), I can see stocks plateauing very favorably towards the end of this year.

Nintendo is currently the #13 biggest company on Tokyo exchange by market cap.

(^^^click for sound^^^)


Also semi-related fun:
https://twitter.com/business/status/755248316649246722

McDonald’s Holdings Co. (Japan) saw its shares jump as much as 23 percent, the biggest daily gain since its July 2001 listing after it started giving away figurines based on Pokemon characters such as Pikachu with sales of Happy Meals on Friday.
"Investors are flocking to Pokemon-related stocks and McDonald’s Japan is one of those benefiting from the boom," Mitsushige Akino, a Tokyo-based executive officer at Ichiyoshi Asset Management, told Bloomberg News.
UPDATE: Nintendo Market Value now at S42.5 Billion after the end of Tuesday trading.

Shares of Japan's Nintendo Co. soared another 14 percent on Tuesday, more than doubling the firm's market capitalization to 4.5 trillion yen ($42.5 billion) in just seven sessions since the mobile game Pokemon GO was launched in the United States.

"I've never seen the trend of such a big company's shares changing so quickly in such a short period of time," said Takashi Oba, senior strategist at Okasan Securities.

"Virtual reality and augmented reality have been a focus of the market but hardly anyone was expecting Nintendo in this area. Suddenly Nintendo has become an AR-related stock," said a fund manager at a Japanese asset management firm, who declined to be named as he is not allowed to discuss individual shares.
And to continue the trend of Pokemon-related stocks rising:

Shares in First Baking Co, a bakery firm with annual sales of 25 billion yen, saw its shares rise 18 percent on Tuesday as the firm sells "Pokemon Bread" among other breads wrapped with character-decorated bags.
http://www.reuters.com/article/us-nintendo-pokemon-stocks-idUSKCN0ZZ01Z

Update 3: Stocks now back down from 42.5b high as Nintendo currently down by more 10% since last night due to profit spending.

http://www.reuters.com/article/us-nintendo-pokemon-stocks-idUSKCN10001H
 
#6
Holy shit, that is insane. Hard to see it staying there, but still.. pretty unreal.

Does anyone have a breakdown of what exactly Nintendo/Niantic are making off the app in terms of dollars?
 
#7
It's kind of funny that one game can change so much.
Maybe it's not 100% deserved, but it's nice to see and hopefully continues with future mobile titles and the NX reveal.
Not sure how long Pokemon go will last, tho. Seems to require a lot of commitment to play which might not bode too well for longevity
 
#12
I remember how upset some members were when they heard Nintendo was going to allow the publishing of some of its properties on mobile - and this game wasn't even developed by Nintendo themselves.

I hope this has changed a few minds on the success Nintendo can have when they don't kneecap themselves with their own hardware.
 
#17
I remember how upset some members were when they heard Nintendo was going to allow the publishing of some of its properties on mobile - and this game wasn't even developed by Nintendo themselves.

I hope this has changed a few minds on the success Nintendo can have when they don't kneecap themselves with their own hardware.
Animal Crossing is going to be huge on mobile.
 
#20
Considering Nintendo bought quite a bit of stock not that many years ago from Yamauchi's Family, they just got a massive return on investment, like holy shit.
 
#21
I remember how upset some members were when they heard Nintendo was going to allow the publishing of some of its properties on mobile - and this game wasn't even developed by Nintendo themselves.

I hope this has changed a few minds on the success Nintendo can have when they don't kneecap themselves with their own hardware.
While I'm sure Nintendo can make a ton by focusing just on mobile, as a fan I don't want that.
I'm ok with them putting out around 5-7 mobile titles a year and diversifying their portfolio with movies and other markets, but it would be a shame to lose their console hardware and software business
 
#25
Welp. This is somewhat worrying to me, since it doesn't feel like there's much that actually justifies the spike. Feels like the stock is heading for an ugly drop sooner or later when investors realize that there's nothing to top Pokemon Go since that one already is the holy grail of mobile and AR gaming.
 
#27
How would Microsoft compare in this statistic?
$423 Billion. Because of that whole being Microsoft thing.

Welp. This is somewhat worrying to me, since it doesn't feel like there's much that actually justifies the spike. Feels like the stock is heading for an ugly drop sooner or later when investors realize that there's nothing to top Pokemon Go since that one already is the holy grail of mobile and AR gaming.
Yes, everyone is banking on Pokemon Go and Nintendo using that model to make a more traditional jump into Mobile after Miitomo. But as long as Niantic continues to fix and update the app to maintain the hype and it plateaus at a relatively high point, stocks could stabilize favorably.
 

Inuhanyou

Believes Dragon Quest is a franchise managed by Sony
#30
Pokemon Go, while a huge success, capitalized on different things entirely than what Nintendo usually offers, in a market that really is fickle and can go busto in a second. Outside of Pokemon brand recognition being uplifted, i'm not sure what other effects it could have
 
#31
Stock will drop as no later app can match this crazy popularity, but it's still a massive win. Plenty of other software companies part of the app boom live solely on one franchise - see Angry Birds - where Nintendo doesn't. This will be good for their business overall, and Pokemon Go will live on in many iterations. Value will obviously stabilize at a lower level but the victory remains.

I remember how upset some members were when they heard Nintendo was going to allow the publishing of some of its properties on mobile - and this game wasn't even developed by Nintendo themselves.

I hope this has changed a few minds on the success Nintendo can have when they don't kneecap themselves with their own hardware.
If this was a sign that they'd jump ship to mobile I think a lot of 'minds' would be scared and angry, since really this is a very simple game and mostly not aimed at the kind of people frequenting neogaf.

There may have been people who wanted no Nintendo property on mobiles at all, period. But many of us see what can be gained from promoting traditional Nintendo properties (on their own hardware) through experiences on other platforms. That's different from wanting them to move their core games business to mobile. Pokemon Go is a success - Pokemon rpgs should remain on their own hardware.

That's the secret here. To make use of their big brand properties on a relatively slow mobile app market, where very few properties stand out, brute forcing their way to the top of mobile charts almost by default, and creating hype around their brand. Then the synergy between mobile 'experiences' and 'games' on their own hardware can be utilized and drive more people to buy their hardware and software.
 
#41
And just like that Nintendo owns the most powerful brand in the world at the moment. Perfect storm.

NO ONE does IP like Nintendo. They are just unparalleled in that regard. That's the True value of this company.
 
#43
Launch NX with Pokemon GO NX.

Deeper experience while using the handheld to go and and raise them. Put handheld in the console system and fight players all over the world.
 
#50
This price spike is just absurd. There are two reasons for the spike:

1) it shows that the value of the Pokemon brand is still extremely high
2) Nintendo will earn a lot of money from Pokemon GO microtransactions

I'm pretty convinced at this point that number 2 is being dramatically overestimated by most investors. The game is actually really poor in terms of depth or gameplay, which I think will kill its ability to last beyond the initial months. The social value of the game - in terms of companies paying money for sponsored locations etc. - will start to stop once everyone and their mother has stopped playing the game due to boredom.