Global Ideas: Nintendo Running +24%

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Previous Post (04 December): NINTENDO Upside Earnings Surprises + Multi-Month Breakout

Wednesday 04 December (Time: 22h06, South African Time, Pre-Market Asian Session)

Technical Takeaway

• High bullish momentum - has the potential to retrace in the short term, however, on the lower time frame, it looks poised to develop a new bull leg.

Nintendo's growth in 2024 has been mixed.

Revenue and Profit:

• Revenue: Nintendo's revenue in 2024 was slightly lower than the previous year, coming in at just over 11 billion US dollars. This marks a decline from the peak of nearly 16 billion dollars in 2021.   

• Profit: Similarly, Nintendo's profit also decreased in 2024, reaching around 3 billion US dollars. 

Factors Affecting Growth:

• Maturity of the Nintendo Switch: The Nintendo Switch, released in 2017, is now in its eighth year on the market. This maturity has naturally led to a decline in sales compared to its earlier years.   

• Increased Competition: The gaming industry is highly competitive, with other major players like Sony and Microsoft constantly releasing new consoles and games.   

• Economic Factors: Global economic conditions, such as inflation and recessionary fears, can impact consumer spending on gaming products.   

  
  

Future Outlook:

While Nintendo's growth has slowed in 2024, the company still holds a strong position in the gaming industry. It continues to release popular games and has a dedicated fanbase. Additionally, Nintendo has been exploring new business areas like film and mobile gaming, which could contribute to future growth.   

Overall, Nintendo's growth in 2024 has been tempered by the maturity of its console and economic factors. However, the company's strong brand, innovative games, and diversification efforts suggest that it will continue to be a significant player in the gaming industry.

Financial Snapshot (Non-Comprehensive)

Technical Summary + Analyst Ratings