(Wikimedia)
In the wake of Pokémon Go‘s release and subsequent world domination, Nintendo’s stock price had been steadily ascending with the expectation of major value. Until today, that is, when everybody apparently figured out at the same time that Nintendo doesn’t actually make the game and the stock plunged.
Nintendo released a statement after the close of trading on Friday conveying that the bottom-line impact of the game will be “limited” as it only owns a 32% equity stake of The Pokémon Company, and that The Pokémon Company co-owns the game with the Google-owned Niantic Labs, who actually created the game. Consequentially, the stock fell about 12.5% on Tuesday, going from $29 a share to its current price as of 4:05 p.m. EST of $25.38. That’s an estimated loss in value of nearly $5 billion.
While economists will tell you that investors are rational actors, this is more evidence that most people buying and selling stocks are totally clueless about the actual companies they are buying and selling. Everybody just assumed Pokémon Go’s worldwide success meant big profits for Nintendo, and then were all blindsided when Nintendo let them know otherwise.
Then again, who has time to research the companies you are going to invest in when there are Pokémon out there to catch?
(h/t The Verge)
Nintendo Stock Price Nosedives After Investors Finally Figure Out It Doesn't Actually Make Pokémon Go
