Boost in earnings makes Nintendo Japan's fifth-biggest company

It looks like the folks at Nintendo HQ have cause to bake a celebratory Wii cake, as Reuters reports that the company is now Japan's fifth-biggest in terms of market value after word of solid earnings performance pushed shares higher in trading today. According to Reuters, the company's market value now stands at ¥8.69 trillion (or about $72 billion), which places it ahead of both NTT and Honda Motor Co. The jump, of course, is largely due to demand for the Wii and Nintendo DS, which has also caused the company to up its operating profit forecast by a hefty 37 percent to ¥370 billion ($3.1 billion) for the year to March 2008. Unsurprisingly, Nintendo doesn't see that demand letting up anytime soon either, with it now saying it expects to sell 16.5 million Wiis in the current business year, along with 26 million DSs -- both numbers of which are 18 percent higher than previous forecasts by the company.

[chadow @ Jul 26th 2007 4:27PM]

Good for them :)

I may actually buy a Wii someday, if I have kids or just get really bored sometime. Im glad they are doing well though. More money to game manufactures = stronger future for gamers.

[tekdroid @ Jul 26th 2007 4:46PM]

...and there's heaps more money in attracting current non-gamers, IMO.

Their advertising is v.good and to-the-point, which no doubt drives the message home.

[Kien @ Jul 26th 2007 4:49PM]

I would like to see how Sony and PS3 fan boys are going to spin this news to their favor.

[chadow @ Jul 26th 2007 5:44PM]

Im a fan of the 360 (wouldn't say fanboy though), and I think this is great news.

[Jonathan Sundy @ Jul 26th 2007 4:58PM]

Buying Nintendo stock (NTDOY) 2 weeks ago and having it go up 20% in that time = win.

Their stock is doing incredibly well since the Wii release. I believe it was around $25 a share this time last year and it spiked up to $65 today (I think it's down around $63 now).

I'm just curious how long their stock will maintain this frenzy and if it will reach Apple levels.

[Davey Jones @ Jul 27th 2007 1:46AM]

Woah, I guess that means winnings for you eh?

I haven't really gotten in this stock market dealy. So if the stock which you baught for $35 went up to $65, I see you made a $30 profit. However, I would like to understand exactly what you do when you want to cash-in.

Is it as easy as that? When your stock goes up you sell and cash-in? I'd be interested to know how this works.

Pce

[Davey Jones @ Jul 27th 2007 1:49AM]

[EDIT] stock baught for $25, profit $45

[Jonathan Sundy @ Jul 27th 2007 4:46AM]

The value a stock is "at" is what it last traded for (roughly) so yes, when the stock quotes say a stock is at $65, that means that if you wanted to sell your stock for $65 a share, someone would buy it.

And it's as easy as logging into your broker and telling them to sell it at that price.

Of course this isn't a normal level of performance.

Also of note is since I'm not selling my stock yet I'm not actually making anything...

[BananaBoat @ Jul 26th 2007 7:28PM]

Every time my Nintendo stock goes up, I cry a little bit because the DS and Wii are the first vanguard in a wave of casual video game consoles that will eventually push us "Hardcore" gamers off to the side. =/

[Poom @ Jul 27th 2007 4:15AM]

Wow, great job Nintendo! I really find the Wii one of the most innovative products out there! Hope you'll never stop innovating!

[alexhrose71 @ Jul 27th 2007 10:16AM]

I just hope this doesn't lead to the dumbing down of the PS4 and Xbox 720 to Wii levels of gameplay. I like my games deep, compelling and with actual plot thanks. Novelty games like Wii Play are fine for 5 minutes but that won't hold anyones attention for too long.

[phrank @ Jul 27th 2007 11:01AM]

I think it is a crazy world when the stock market prices a company like Nintendo to these levels.

I am happy that the Wii is doing well. In addition, I am not a PS3 fan, I'm a 360 fan. However Sony is a much more diverse company (consumer electronics, movies, TV, software, gaming, business services, and so on). Nintendo is completely one sided (gaming only). Like most stocks that go up to unheard of P/E ratios, it is based on hype from investors that don't completely understand the market. Nintendo can't sustain the growth that their stock price demands unless they branch out in to other things. This the market though. Too bad I didn't buy their stock a year ago.

[EngadgetFanBoi @ Oct 15th 2007 6:33PM]

This article is wrong, and the READ link doesn't work.


Nintendo has actually just passed 10 million yen ($85 million) in market value.
http://investing.reuters.co.uk/news/articleinvesting.aspx?type=media&storyID=nT307518

Sony's total revenue is more than 8x Nintendo's.
Sony trades both in America and in Japan.

[EngadgetFanBoi @ Oct 15th 2007 6:38PM]

I meant ¥10 trillion ($85 billion).