SELL NINTENDO
OLM
Nintendo said it is not planning to adjust earnings forecasts, which means that the game's popularity and subsequent revenue is not going to make a sizeable dent in its financial report.
This is yet another sign that the Japanese games maker is looking overvalued.
Finance blog Zero Hedge and Bloomberg are reporting that Nintendo says the "financial impact from Pokémon Go will be limited."
NINTENDO: NO PLANS AT MOMENT TO ADJUST EARNINGS FORECASTS. because there is nothing to adjust?
- zerohedge (@zerohedge) July 22, 2016
NINTENDO SAYS FINANCIAL IMPACT FROM POKEMON GO WILL BE LIMITED.
- zerohedge (@zerohedge) July 22, 2016
As my colleague Lianna Brinded pointed out recently, Nintendo is not actually the company behind Pokémon Go and it is not clear how much it will actually make from revenue from the game.
Nintendo was the original creator of the Pokémon video games and holds some licensing rights to Pokémon Go, but the main beneficiaries of the game are likely to be developer Niantic, and the tech giant Apple, which takes a cut of in-app purchases on the iPhone.
Investment bank Macquarie said recently "it's too early to include Pokémon Go in our forecasts for Nintendo for now." Analysts at investment bank CLSA rate Nintendo a sell.
Investors have been slow to cotton on to Pokémon Go's ownership structure. Nintendo shares more than doubled in just over two weeks and although they have since fallen back slightly, they're still over 96% higher than where they were before the game was released.
Investing.com
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