Nintendo shares fall: analysts not worried

Nintendo recently released its financial earnings for the period from April to December of 2007, reporting a strong growth that once again led them to increase their profit forecasts for the year. Despite the rise in sales though, Nintendo shares actually fell 9.7% in the market. This was the result of a number of factors, including a weak dollar. Analysts aren’t worried for Nintendo though; they believe that the company will still have strong growth next year. Check out the full article for details.

Nintendo recently reported a gargantuan 84.7% increase in net sales as compared to last year, giving them the cue to raise their net sales forecast for the year yet again. Yet despite the rise in sales, Nintendo’s shares actually fell 9.7% in the market.

One of the reasons for this is that their shares are sensitive to the movement of the dollar, which is weak right now. Another factor is that some institutional investors who bought a large amount of stocks over the years have pocketed their profits.

Whatever the reason though, analysts aren’t worried for Nintendo’s future. In the long haul, Nintendo remains to be an attractive investment for investors. They remain confident that the company will have strong growth next year.

Says Yasuo Imanaka, analyst for Rakuten Securities:

In the United States and Europe, shortages of the Wii and DS are getting serious. Nintendo will surely boost production in the next business year. […] And higher output will lead straight to higher sales of its game machines and game software. I think we are going to see Nintendo chalking up strong profit growth next year, again.

Via Reuters