Not true at all. In this case NTDOY will be an indicator of where 7974 opens tomorrow. Material news after the Osaka close was already reflected via their German listing and will be for NTDOY. Nintendo doubled their profit estimate for FY, but that was due to currency conversions on cash balances. (one time event) They missed on 3DS hardware and software as well as Wii U hardware and software and had to lower their projections. It was not a good report.
That being said, the Wii U sales trend seems to be mostly priced in. I think we could see 1-2 more poor quarters at most, but holiday 2013 should be great. Most likely we will be fairly range bound until then due to a lack of system selling software. The 3DS should pick up as the year goes on but the Wii U will continue to underperform until bigger games hit (Sept or Oct).
Sorry to all shareholders but now is the time to buy and not prior. All the bad news is baked in at this point and Nintendo will surprise people with their success starting 4th Q of this year and going forward.
Disclosure: I have a small long position and see this as an opportuntity to average down before the nice cyclical run.