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Buy Nintendo stock (NTDOY): The need-to-knows
Yoshi isn't the only kind of green this company can offer.
In 2017, Nintendo shipped over 15 million copies of its newest console, the Switch, fueling an operating profit of $1.62 billion — a massive 505% increase on the previous 12 months. But a good year doesn’t mean it’s a risk-free investment.
Nintendo’s recent stock performance
Take a look at Nintendo’s stock price performance over the last several months. Monitoring the market is just one aspect of the research you should do before investing in a company like Nintendo. It’s always important to remember that past performance is no indication of future results.
Nintendo’s financial performance
Explore the table below to see how Nintendo has performed financially over the last three years. All figures shown are in Japanese Yen (¥).
|Nintendo (March Figures)||Revenue||Operating Income||Net Income||Total assets||Total Equity||Number of Employees|
|2016||¥504.459 billion||¥32.881 billion||¥16.505 billion||¥1.297 trillion||¥1.161 trillion||5,064|
|2017||¥489.095 billion||¥29.362 billion||¥102.574 billion||¥1.469 trillion||¥1.251 trillion||5,166|
|2018||¥1.056 trillion||¥177.557 billion||¥139.590 billion||¥1.634 trillion||¥1.324 trillion||5,501|
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Ways to stay up to date with Nintendo stock
When buying or selling shares in a company it’s important to keep an eye on current affairs related to the company, including:
- Financial reporting. Nintendo reports annually on March 31st each year.
- Company news. Is Nintendo planning to release a new games console in the next few months? Are they looking to move into a new country or market? Are they hiring/firing staff? All of these events will have an impact on the company’s stock price.
- Wider news. You should also be aware of other external events and news that may have an impact on Nintendo’s share price — for instance, news about the video games industry or a new product launch by a competing company like PlayStation or Xbox.
- Does the company pay dividends? If a company pays dividends, it means they pay some of their profits back to shareholders. Currently, Nintendo does pay dividends on their shares.
- Shareholder meetings. These are often held annually and invite large shareholders to attend meetings and vote on matters relating to the company. It is a good idea to know when these are, as they may hold importance over the direction of the company. Nintendo hosts a shareholder meeting annually in June each year.
Things to consider before investing
Before you invest in ant company, it’s a good idea to research:
- What does the company do? Can you explain what the company does in a few sentences? If you can’t, maybe you should go back to the drawing board.
- Is it making profits? If you’re not sure whether a company is profitable, this could be a warning sign. Read Nintendo’s quarterly or annual earnings reports and take a look at the figures for yourself.
- Who are the main competitors? Every company operates alongside competitors, and they can have a big impact on stock price. Research whether your company is a force to be reckoned with or being forced out of the market.
- Who runs the company? Any decent company will list its senior managers. Even a cursory look at this can tell you something about the company’s stability and management style. Constantly rotating leadership can be a sign of trouble.
- Is the company’s position sustainable? Will the product or service that it offers still be in demand one, five, or even ten years from now? If you’re looking for a long-term investment, make sure it’s a long-term company.
- Is there room for future growth? Linked to the question above, what is the outlook for medium- to long-term growth? Has your company reached its maximum size?
As an international giant in the video game industry, Nintendo is a popular choice for investors. However, every investment comes with risk, so it’s up to you to decide if Nintendo is a gamble you’re comfortable with and to compare which investing platform is best to buy its stock through.
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