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TipRanks Review: Analyzing the Nintendo Share Crash

Nintendo Shares Plummet After Poor Super Mario Run Reviews

Japanese gaming company Nintendo (NASDAQ: NTDOY) has seen its US-listed shares plummet by 10% on Friday and another 4% on Monday following highly critical reviews of its latest Super Mario Run app, released on December 15.

Ahead of the app’s release we can see that there was a sharp run-up in Nintendo’s share price. But damaging reviews and the app’s failure to reach No 1 in Japan, one of the world’s biggest smartphone game markets, prompted investors to close out bullish bets.

In this situation- where the outlook for a stock springs from bullish to bearish- we need to ask ourselves, what can investors do to monitor share performance and subsequently optimize investment strategy?

Bubble Bursts

At the time of writing, Nintendo shares are at $26.41 on NASDAQ- slightly up from the low of $26.04 on December 19. If you compare that to the three-month high of $33.738 back at the end of September you can see how far the shares have fallen. This graph from TipRanks illustrates the drop nicely:

Nintendo Share Prices

If we dig into these numbers a bit more deeply we can see that the volumes traded on Nasdaq are interesting too- on December 16 Nasdaq registered 2,560,877 Nintendo trades- about 4 times the normal Nintendo trading volume.

Nintendo News

Using TipRanks Smart Portfolio News option we can see how the news transitioned from positive- as the app was hyped up by Nintento and Apple- to negative – as the app’s poor App Store rating became apparent. “Super Mario Run is the worst kind of mobile game” said one reviewer angry with the $10 fee to unlock higher levels.

Nintendo news headlines

 

Selecting the Bearish News button shows that a rash of negative articles appeared on December 19 which is also when the Nintentdo share price fell to its lowest point. Before this date there were no bearish articles in December and only two in the whole of November.

You can see the Nintendo bullish/ bearish news for yourself on TipRanks new news page as well as the media buzz and news sentiment score.

The picture from financial bloggers is similarly revealing. As well as scanning all news, TipRanks also uses Natural Language Processing to scan and categorize financial blog posts. Here we can see how the Bullish outlook by bloggers turned bearish only 2 days ago.

Financial Bloggers on Nintendo

So What Now for Nintendo Investors?

According to financial blogger Austin Craig, who has a ranking of #235 out of 5,669 tracked bloggers on TipRanks, its “game over” for Nintendo and investors should avoid Nintendo stock. Craig recommends that investors check back in closer to the Nintendo/ Universal Studios theme park areas opening in 2020.

Meanwhile fellow financial blogger Starfish Investing, who has a two-star rating according to TipRanks financial accountability engine, is even more abrupt in his choice of words. The stock price has been hit because the fundamentals did not justify the price, Starfish Investing writes, concluding that “Nintendo’s stock price will continue to fall, perhaps to all-time lows”.

Outsmart the Market

Here we have focused on financial bloggers but with TipRanks Pro you can also outsmart the market by tracking how the best-performing analysts in the world rate a specific stock. TipRanks covers thousands of Nasdaq and NYSE listed stocks for you to explore.

 

Harriet Lefton
Harriet Lefton, originally from the UK, began her career as a journalist specialising in the niche world of metal markets. She graduated from the University of Cambridge before becoming a qualified UK lawyer. Now she has turned her attention to the world of financial blogging, covering US stocks, analysts and all manner of things finance-related.
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