Why Nintendo Stock Dropped Today
Shares of video game company (OTC: NTDOY) dropped on Tuesday after the company reported financial results. The Japanese company reports infrequently but provided numbers for the most recent six-month period. Investors weren't too thrilled and Nintendo stock was consequently down about 3% as of 10:20 a.m. ET. But it had been down closer to 5% earlier in the day.
Nintendo sells video games and has tons of monetizable intellectual property. But the bread and butter of this business is video game consoles. Right now, the current hardware is the Nintendo Switch and it's eight years old. Given its age, it's not surprising that sales are waning.
The first half of Nintendo's fiscal 2025 ended on Sept. 30. And during that six-month period, net sales were down 34% from the comparable period of its fiscal 2024 and operating profit fell 57%. Moreover, the company sold fewer than 5 million units of its Switch console during this time, down 31%.
Source Fool.com
