Nintendo’s stock is listed on the Tokyo Stock Exchange (TSE) under the ticker symbol 7974.T and on the U.S. If you are considering investing in Nintendo shares, you can either position yourself via the Japanese primary listing, or on the Over-The-Counter (OTC) market in the U.S. under the ticker NTDOY.
Nintendo Co. Shares Today (7974.T)
Nintendo Co. EPS and Revenue Breakdown 2020-2023
Nintendo is a Japanese video game giant that has become one of the most iconic names in the gaming industry. Founded in 1889 in Kyoto, Japan, Nintendo originally produced handmade playing cards before transitioning to electronic entertainment. It is now best known for publishing some of the most beloved video game franchises, including Super Mario, The Legend of Zelda, Pokémon, and Animal Crossing.
| Year | EPS | Annual Revenue |
|---|---|---|
| 2020 | $0.39 | $12.04 billion |
| 2021 | $0.95 | $16.53 billion |
| 2022 | $0.90 | $15.09 billion |
| 2023 | $0.77 | $11.85 billion |
Nintendo’s success is largely built on its gaming consoles, such as the Nintendo Entertainment System (NES), Game Boy, Wii, and the more recent Nintendo Switch, which revolutionised the market with its hybrid design for home and portable gaming. The company’s strategic focus on family-friendly games and unique hardware innovations has differentiated it from its competitors.
YOUR CAPITAL IS AT RISK
Gaming Industry Comparison
Nintendo Co. Price & Dividend Yield
Nintendo’s shares experienced a surge from March 2023 to around July 2024. In 2020, amid the COVID-19 pandemic, the stock also surged as demand for gaming products increased sharply. However, more recently, it dipped following an earnings release that disappointed investors.
Dividend Yield: 2.31%
YOUR CAPITAL IS AT RISK
Nintendo Co. Share Price Forecast
Based on data compiled by TradingView, 23 analysts covering Nintendo maintain a range of outlooks, with 14 recommending Buy ratings, six offering Hold ratings, and three suggesting a Sell rating.
A View From The Bulls: Analysts at TD Cowen are bullish on the stock, initiating Nintendo with a Buy rating and JPY 10,600 price target in a recent note. The firm described the company as the world’s largest pure-play video game company, noting that it has a leading hardware platform and a constant output of some of the industry’s highest-quality video games. TD Cowen also feels the portfolio of intellectual property the company has assembled over the last 40 years has “substantial unlockable value beyond video games.”
A View From The Bears: Meanwhile, CLSA recently cut its target for Nintendo JPY6,100 from JPY6,300, keeping an Underperform rating on the stock. Following Nintendo’s recent earnings release, the firm said it faced difficult previous-year comparisons, given the release of the Super Mario Bros movie and The Legend of Zelda: Tears of the Kingdom. However, CLSA noted a “heavy 46% YoY drop in Switch unit hardware sales,” saying it demonstrates the decline of Nintendo’s fundamentals that they see lasting at least through the end of the fiscal year.
Average Analyst Consensus 12-Month Price Target: JPY 9,400
Our View: Nintendo’s ability to consistently release high-quality, engaging games that appeal to a broad audience, alongside its innovative approach to gaming hardware, sets it apart from competitors. As the Nintendo Switch enters the latter stages of its lifecycle, investors are eagerly anticipating the next console release, which could be a major catalyst for future growth. However, investors should also be aware of the company’s recent results, and, notably, the 46.3% decline in Switch sales may impact the stock price in the near term.
Who Should Buy Nintendo Shares?
Nintendo appeals to long-term investors who are confident in the continued growth of the gaming industry and believe in the company’s ability to innovate, especially given the recent earnings release. The company’s strong intellectual property, loyal fanbase, and focus on family-friendly entertainment give it a competitive edge in an increasingly crowded market.
Dividend-seeking investors may also find Nintendo attractive, as the company has a history of paying dividends, supported by its solid cash flow. Nintendo’s diverse portfolio and its increasing focus on digital content delivery and services provide multiple revenue streams, making it a well-rounded investment option.
That said, Nintendo’s stock may not be suitable for short-term investors who are sensitive to fluctuations related to the hardware cycle. As the Nintendo Switch ages, hardware sales have declined, impacting profits.
Nintendo offers a unique blend of strong intellectual property, innovation in gaming hardware, and a growing digital ecosystem, making it a solid choice for long-term investors who are bullish on the gaming industry. However, shorter-term investors or traders should consider the potential risks tied to the hardware cycle and competition from other major gaming companies.
