It has it's positive days where it rises incrementally 0.2% here and there, then tanks 2-3% on any given day after. This death spiral is killing investors and not a word from Nintendo on damage control to keep this stock from falling further. Was there ever a "plan B" if the Wii U didn't do too well? I'd like some answers, and considering the next financial report isn't due until January 21st, how much lower will shares fall before that day comes. Then the question remains, if the report is negative, how much more can shares possibly drop? and if it's positive, will it come even close to recovering the 20%+ it's sunk over the last couple of weeks? I doubt it.
What really makes this all confusing is that the 3DS is actually selling really well for Nintendo, and the Wii U is doing ok. It's not doing as well as the Wii did, but it's not like people aren't buying it. Yet the stock keeps dropping like a rock. The only reasoning behind this that I have heard is lack of developer support to make games for the Wii U, lower Wii U sales then the Wii, Japan's economy is bad and their currency is losing its value, tablets are taking sales away from consoles/games, and the whole fiscal cliff ordeal.
Is there something else I'm missing here? What do people think the share price will be going into the earnings report and afterwards?
Hint: it's going down on a very low volume. that should tell you that not a lot of people are willing to sell at these prices. but you do see the price fall because of very few people that have no clue how to trade stocks.
The whole video game sector is taking a daily incremental hit. I think the unfortunate tragedy in Newtown has also contributed to the selloff. NRA has been blaming video games as one of the causes and its affected stocks like GME, ATVI, TTWO, etc. There are definite buying opportunities in the gaming companies. Once MSFT and SNE reveal their new machines in the E3 convention the gaming sector can finally have a refresh cycle. I believe will see optimism and upward speculative buying this year.
I will hold for now until this political theater titled "The Fiscal Cliff" subsides. We all know politicians will be doing this in the last minute, and CNBC will say hallelujah giving us a rally in the stock market.