- Dec 11, 2018
It has been three years since the launch of Nintendo’s (NTDOY) flagship console Switch. While the console continues to show outstanding results, as its sales are annually increasing by single and double digits, its momentum is about to fade away. The looming global recession caused by COVID-19 is only one of many things that will disrupt Nintendo’s ability to create shareholder value in the near future. The upcoming release of the new generation of consoles, the full-scale launch of cloud gaming services and the poor monetization of Nintendo’s mobile titles are one of the few reasons why we are bearish on the company and hold a short position in it.
- Nintendo Switch has been showing outstanding results since its launch three years ago and has been creating massive amounts of shareholder value along the way.
- However, we believe that the console’s momentum is about to fade away and its sales will deteriorate by the end of 2020 fiscal year amid intensified competition.
- The company has no real catalysts in sight and its stock offers enough margin of safety to justify holding a short position in it.
Nintendo: Switch Momentum Is About To Fade Away (OTCMKTS:NTDOF)
Nintendo Switch has been showing outstanding results since its launch three years ago and has been creating massive amounts of shareholder value along the way.