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Nintendo Stock Price Drops on Pokémon Go Guidance

posted by cmn32480 on Tuesday July 26 2016, @05:12AM   Printer-friendly
from the that's-not-actually-ours dept.

butthurt writes:

Bloomberg reports that Nintendo's stock price fell by 18%, the maximum amount permitted in one day on the Tokyo stock exchange. The decrease occurred after the company issued guidance that the popular game Pokémon Go should not be expected to bring in much revenue for the company. The game was created by Niantic Inc., of which Nintendo has partial ownership. Nintendo's stock had "almost doubled" since its release.

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  • (Score: 1) by khallow on Wednesday July 27 2016, @01:26AM

    by khallow (3766) Subscriber Badge on Wednesday July 27 2016, @01:26AM (#380560) Journal

    This shows what those paying attention to the markets already knew: valuation today is based on speculation and how people feel, not real due diligence.

    Amazing how much unsubstantiated conjecture you can get out of a temporary market fluctuation.

    When the market starts bouncing around like this, capping the allowed amounts daily, with literally no fundamentals underpinning these moves in either direction you have a recipe for terrific instability.

    For a few days. Then the bouncing becomes less bouncing and you're back to normal.

    I hope I'm wrong, but I think we're basically one trigger event away from the onset of a "greater depression." Could have fixed the problem 8 years ago instead of bailouts, but we doubled down instead.

    Sure, there was that story about the Yellowstone supervolcano. A surprise caldera collapse with only a year's warning would do, no matter how healthy your economy was at the time (unless of course, it's healthy enough to stop a supervolcano eruption without the effort significantly depressing the economy).