Nintendo Shares Fall as Investors Discover it Doesn't Actually Own Pokemon GO

[ffronw]

Nintendo Shares Fall as Investors Discover it Doesn't Actually Own Pokemon GO

//cdn.themis-media.com/media/global/images/library/deriv/1338/1338177.jpgNintendo's stock fell sharply as it announced that Pokemon GO won't affect its profits much at all.

There have been plenty of effects from the meteoric rise of Pokemon GO, but perhaps the most unforeseen was the jump in Nintendo's stock price. Although most people associate Nintendo with the franchise, it's actually owned by The Pokemon Company, which Nintendo owns a third of. Pokemon GO is even further disconnected from Nintendo, as it is developed by Niantic, and only licensed by The Pokemon Company.

Be that as it may, Nintendo's shares had Bloomberg [http://www.escapistmagazine.com/news/view/167911-Pokemon-GO-Raises-Nintendo-Shares-25] reported that Nintendo's market value had doubled, surpassing Sony's. All of this success was great for Nintendo, but on Friday, reality kicked in for many investors.

After a Nintendo financial briefing Friday in which the company announced that any profits it realized from Pokemon GO would be limited, the company's stock dropped over 17 percent. The announcement is not surprising, as the only revenue Nintendo can expect from the popular app is a percentage of the licensing fees. But that doesn't mean that Nintendo won't benefit from Pokemon GO's popularity in other ways.

After all, this fall will see the release of the next pair of games in the Pokemon handheld series, Pokemon Sun and Pokemon Moon. With the excitement generated by Pokemon GO, you can bet that Nintendo is excited about the prospects for those two games.

It's not surprising to see a correction in the rise of Nintendo's stock prices, especially given its peripheral relationship with Pokemon GO. Even so, it's likely that Nintendo will still see some benefits from the app's enormous success.

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[gigastar]

You would really think that investors would actually know this stuff ahead of being told it.

 

[Cowabungaa]

You would really think that investors would actually know this stuff ahead of being told it.

Goes to show how ridiculous our global economic system is. It rests completely on this assumption that people are rational decision makers with perfect information who act based on their self-interest. That couldn't be further from how people actually behave in economic situations.

This? This is a perfect, if simplistic, example of how silly that assumption is.

 

[Borty The Bort]

Look at all those jock investors,thinking they know nerd stuff :3

 

[Johnny Novgorod]

You would really think that investors would actually know this stuff ahead of being told it.

Or that Nintendo would've dispelled false assumptions earlier. Embarrassing.

 

[gigastar]

You would really think that investors would actually know this stuff ahead of being told it.

Goes to show how ridiculous our global economic system is. It rests completely on this assumption that people are rational decision makers with perfect information who act based on their self-interest. That couldn't be further from how people actually behave in economic situations.

This? This is a perfect, if simplistic, example of how silly that assumption is.

On the other hand its also an amazing example of how strongly Pokemon is associated with Nintendo, rather than The Pokemon Company which has been responsible for all Pokemon spin off games, merch, movies and anime that most of us were swamped with while growing up.

 

[gigastar]

You would really think that investors would actually know this stuff ahead of being told it.

Or that Nintendo would've dispelled false assumptions earlier. Embarrassing.

Considering thier stock price rise over the past month i can hardly blame them for it.

I mean if i were to stand to benefit in such a way from something that actually had very little to do with me i know id sit back and let it happen.

 

[Johnny Novgorod]

You would really think that investors would actually know this stuff ahead of being told it.

Or that Nintendo would've dispelled false assumptions earlier. Embarrassing.

Considering thier stock price rise over the past month i can hardly blame them for it.

I mean if i were to stand to benefit in such a way from something that actually had very little to do with me i know id sit back and let it happen.

Only to lose it soon thereafter, along with a portion of your credibility.

 

[gigastar]

You would really think that investors would actually know this stuff ahead of being told it.

Or that Nintendo would've dispelled false assumptions earlier. Embarrassing.

Considering thier stock price rise over the past month i can hardly blame them for it.

I mean if i were to stand to benefit in such a way from something that actually had very little to do with me i know id sit back and let it happen.

Only to lose it soon thereafter, along with a portion of your credibility.

If Nintendo stock prices fall to pre-July levels then youd be right.

As for credibility... well if the Nintnedo Defence Force has proved anything is that the customers are just as blind and stupid as the money grubbing trogdolytes that are now in control of thier favorite company.

 

[bluegate]

It's almost as if Pokemon Go was created by a different company than Nintendo and Nintendo not being the sole owner of the Pokemon Franchise....

 

[Deathfish15]

This just goes to show how stupid and corrupt the whole stock market and company value speculation is. I mean, FACEBOOK got listed and it's revenue at the time hinged entirely on the backs of other companies through advertisement on that site. Facebook's self-worth as a company that had saleable goods was that of $0.00. Many of the major advertising companies on Facebook are already major stock players in the Fortune 500.

Why on earth would the FTC allow a company that was more or less a shell based on other companies' successes to list itself? Where was the investigation into the overall true worth/value of Facebook on its own standing? "Over a billion likes a month" means nothing in reality to a profitable company...it just sounds nice because of the word 'billion'. In truth, those billion are pieces of pennies of advertisement spending by Coca-Cola, Ford, Nissan, Century21, and so many other companies that forked over money to blast adverts at Facebook users. There was no base value!


Why the rant about Facebook on this article about Nintendo and Pokemon GO? Because they have similar correlation in that media coverage over popularity skewed investor opinions in the company in order to green-light stock sales. Some investors were just blankly reading news articles that associated one with another [horrible misinformation at the time] and made a quick reaction in order to trade while the prices were low. {"Buy low, sell high." ---Motto of Wall St.} The media did the same with Facebook to rouse stock interests by shrouding its lack of viable product revenue with overall popularity numbers, of which 99% of visitors were free users.

3 Problems:

1) Snap-judgement calls with stock market purchases.

2) Company valued on speculation rather than current worth.

3) Media manipulation of facts in order to persuade opinions and purchases.

 

[Fappy]

Wow, GG investors. Might want to do some actual research next time.

 

[RaikuFA]

You sure it wasn't because something happened at the Dow? Where the stocks would fall if someone forgets to flush the toilet.

 

[RJ 17]

My initial reaction to reading this article: an actual, genuine, real-life "laugh out loud."

Does that make me a bad person? :3

 

[P-89 Scorpion]

So Nintendo's stock price falls 17% and by Japanese law stock prices can only drop 18% a day. Hmm more drops coming tomorrow.

 

[Saelune]

This makes -me- feel better. I suppose my fears of real pokemon games not happening anymore after Sun and Moon are mostly alleviated now.

 

[AzrealMaximillion]

My initial reaction to reading this article: an actual, genuine, real-life "laugh out loud."

Does that make me a bad person? :3

Nope. It makes you just like most of us. Laughing out loud. This is hilarious. If Nintendo simply announced a Pokemon MMO made by them their stocks would have went way up.

This news coming before the NX announcement is nuts.

 

[Gatlank]

You would really think that investors would actually know this stuff ahead of being told it.

Goes to show how ridiculous our global economic system is. It rests completely on this assumption that people are rational decision makers with perfect information who act based on their self-interest. That couldn't be further from how people actually behave in economic situations.

This? This is a perfect, if simplistic, example of how silly that assumption is.

And that's how economic clusterfucks are made.

 

[MoltenSilver]

You would really think that investors would actually know this stuff ahead of being told it.

Goes to show how ridiculous our global economic system is. It rests completely on this assumption that people are rational decision makers with perfect information who act based on their self-interest. That couldn't be further from how people actually behave in economic situations.

This? This is a perfect, if simplistic, example of how silly that assumption is.

And that's how economic clusterfucks are made.

And make it double given that now those snap decisions are made at the speed of light by bots programmed to respond to numbers without context

 

[Level 7 Dragon]

You would really think that investors would actually know this stuff ahead of being told it.

Goes to show how ridiculous our global economic system is. It rests completely on this assumption that people are rational decision makers with perfect information who act based on their self-interest. That couldn't be further from how people actually behave in economic situations.

This? This is a perfect, if simplistic, example of how silly that assumption is.

In all fairness, not all brokers are gamers, infact, most have only a passing interest in the organizations they put their money in.

Speaking of economics, consider reading about the school of Institutionalism, which examines cultural and psychological influence on macro and microeconomics and puts into question the axiom of the rational consumer.