nintendo stock has risen due to a new operating profit forecast for the year ending March 2025, showing a 10% decline. The company expects its operating profits in 2025 to reach 360 billion yen or $2.36 billion.
The Kyoto-based gaming giant sold 4.7 million Switch consoles this fiscal year, up from 6.8 million units shipped last year. In the past, the stock market often received applause during Nintendo presentations. However, the company's significant decline prompted investors to act and focus on its policies as new innovations took over the market.
Revised sales forecast: 12.5 million units from previous level
Besides, nintendo broke the news that it has reduced its sales targets for Switch hardware for the year by about 7% to 12.5 million units from the previous level. After the Nintendo DS, the Switch has already become the second best-selling Nintendo console, so the decline in sales has begun to be felt.
Even though the market is in decline, Nintendo managed to keep the game console afloat by introducing its well-known characters to attract customers. However, despite the Japanese company's low sales forecasts, investors could still be more demanding, as they want to see what the company's next move is.
The Impact of Recent Releases on Nintendo Stock
In the previous fiscal year, Nintendo's Switch sales got the desired boost thanks to the successful games – “The Super Mario Bros. Movie.” and “The Legend of Zelda: Tears of the Kingdom.” These releases not only demonstrated that Nintendo characters are still very popular, but also lessened the impact of their slow hardware sales.
However, Nintendo's share price suggests that investors are concerned about the company's future growth strategy. Consequently, management may need to consider a new hardware platform or other innovations to maintain its competitive advantage.
Nintendo Stock Chart Analysis
Nintendo 15 minute chart
From a 15 minute chart to nintendowe can see the technical picture of Nintendo Co. Ltd. The stock is currently trading around 17.2 THB and has recently moved between 17.4 and 18.4.
The RSI (relative strength index) is around 34.99, which is not far from oversold territory. In our opinion, it means that sales have been strong, but not excessive. If the RSI rises above this level, that would indicate that buyers are getting involved. This is a possible scenario that may result in a short-term price reversal or bounce.
Upon further analysis, it clearly shows that the resistance area is currently in the 17.7 to 18.0 zone, while the support zone is around 17.2. The price rose but was trapped near 18.
A move below 17.2 will push the stock price even lower. However, we should also look for an increase in trading volumes or a bullish RSI above 50 points to consider a trend reversal as further confirmation.
Now is the time to take action and prepare for the next step!
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