Revisiting Nintendo (NTDOY, 7974)
Revisiting Nintendo (NTDOY, 7974)
The Apple of the gaming industry and potential king of entertainment
Nintendo’s Ticker: NTDOY, 7974
Price at Publication: JPY 6536
KonichiValue Rating: BUY
Summary:
Nintendo's unique business model, akin to Apple's, allows it to control both console and game development.
Its strategic positioning and proven track record make it a top contender in the gaming industry and an attractive long-term investment.
Since the successful launch of the Nintendo Switch in 2017, Nintendo has demonstrated a dominant presence in the gaming market.
The company's anticipation of a new console release in 2024 further bolsters its position as an attractive investment.
Nintendo's approach of hardware and software integration provides a distinctive competitive edge, evident in the company's profitability from Switch sales.
Despite facing potential risks with the launch of a new console, Nintendo's history and market efficiency speak for its ability to navigate these challenges successfully.
Hello again, readers! If you remember, I previously shared an analysis on Nintendo Co., Ltd. (NTDOY) where I suggested Nintendo could potentially dethrone Disney as the King of entertainment:
Fast forward to today, and Nintendo's moves have added weight to this prediction. Their movie segment, kicked off by the Super Mario Bros movie, has become a new profit driver. Meanwhile, their video game segment continues to flourish with the 2023 launch of 'Zelda: Tear of the Kingdom' outperforming expectations.
These developments have solidified my conviction in Nintendo's potential. So, let's delve into an updated analysis that evaluates Nintendo's position in the entertainment industry and its journey towards claiming the throne.