Short sellers double down on Nintendo
27 July 2016 Kyoto
Image: Shutterstock
After a sluggish start, short sellers are making up for lost time by quickly building their positions in Nintendo’s stock, with short interest rocketing up more than 400 percent in the past week, according to S3 Blacklight.
Following the recent release of the global gaming phenomenon Pokémon Go, S3 Blacklight, a US data analyst, recorded a 27 percent drop in Nintendo’s share price as of 25 July, down from its year-to-date high of JPY 31,770 (US$301.2) on 19 July.
Nintendo owns a 32 percent stake in The Pokémon Company, which manages to franchise, and initially began to draw short interest after it clarified its exposure to Pokémon Go’s success and confirmed it would not be revising its future earnings forecast upwards, despite the game’s global popularity.
The Japanese videogame company described Pokémon Go-related revenues as “limited” and stated that it had already been incorporated and gains from the game’s success into its revenue forecasts, in a statement on 22 July.
Nintendo’s Q1 results revealed an overall loss of JPY 5.1 billion (US $49 million), primarily as a result of the strong yen.
Following the recent release of the global gaming phenomenon Pokémon Go, S3 Blacklight, a US data analyst, recorded a 27 percent drop in Nintendo’s share price as of 25 July, down from its year-to-date high of JPY 31,770 (US$301.2) on 19 July.
Nintendo owns a 32 percent stake in The Pokémon Company, which manages to franchise, and initially began to draw short interest after it clarified its exposure to Pokémon Go’s success and confirmed it would not be revising its future earnings forecast upwards, despite the game’s global popularity.
The Japanese videogame company described Pokémon Go-related revenues as “limited” and stated that it had already been incorporated and gains from the game’s success into its revenue forecasts, in a statement on 22 July.
Nintendo’s Q1 results revealed an overall loss of JPY 5.1 billion (US $49 million), primarily as a result of the strong yen.
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