Last Updated: October 15, 2021
Did you know that Nintendo’s Donkey Kong was the first game that featured the jumping motion? Mario made an appearance in the game and was known as Jumpman back in the 80s and was the first gaming character with the ability to jump.
Over the years, Nintendo has released plenty of gaming consoles and games which either had a positive or negative impact on its stock market. Investors in the US have taken an interest in buying Nintendo stock. Since it’s a Japanese company traded on the Tokyo and Osaka stock exchanges, you may be wondering how to buy Nintendo stock if you live in the US.
We’ve also provided information on Nintendo stock performance and whether you should buy now. You’ll also want to follow our guide so you can buy your Nintendo stock easily.
About the Company
The History of Nintendo dates as far back as 1889. It was founded by Fusajiro Yamauchi and before it was the massive electronic video game company it is today, the brand sold playing cards. Fast forward to 1977, and Nintendo released its first gaming console called the Color TV-Game.
In 1981 the Nintendo company gained massive international recognition after releasing its famous game called Donkey Kong. The brand didn’t slow down there because they’ve released many consoles over the years, such as the Nintendo DS, NES, SNES, Game Boy, and the popular Nintendo Switch. They’ve also released plenty of well-known games such as Super Mario Bros and the Legend of Zelda games.
Although the company’s consoles and games are popular, Nintendo stocks have experienced plenty of ups and downs. When the (now massively popular) Switch handheld console was first announced, users were highly sceptical, which negatively affected the company stock. While Nintendo stock price is currently almost three times higher than it was in late 2016, this demonstrates how susceptible it can be to the whims of the fanbase.
However, as mentioned before, there are rumors that the company is planning to launch a new Switch Pro that will have a 7-inch OLED screen from Samsung. It will also support 4K gaming, and it will have faster processing. It remains to be seen how this will affect Nintendo stock performance.
Some experts say not to take these rumors seriously until Nintendo releases information that they will be making a new Switch. However, a new console may be able to revive the market for Nintendo stocks which has lost 3% of its value since the beginning of 2021.
Should You Buy Nintendo Stock?
Just like any investment, you should first know how volatile Nintendo stock price is before you decide to make your purchase. In this section, we’ll give you a breakdown of Nintendo’s stock performance so you can decide whether it’s a good buy or not.
Nintendo Stock Performance
In 2020 there was a rise in demand for Nintendo consoles which increased NTDOY stock by 60%. Since more people had to stay at home during the pandemic, Nintendo games with a multiplayer component, such as Animal Crossing: New Horizons, became incredibly popular.
As a result, Nintendo’s revenue increased by 34%, and the company’s net profit rose 84% in fiscal year 2021. In 2020, the company’s shipment of the Switch and Switch Lite increased 37% to 28.8 million for the full year.
Nintendo’s software shipments also increased by 36.8% to 230.9 million units. However, the Nintendo Company predicted that they would have a decrease in hardware shipments by 12% and software by 18% due to increased competition and a shortage in chips.
At least the company is honest about the challenges it’s facing, so investors can see how these numbers may affect Nintendo stock price.
What’s Next for Nintendo Stock?
According to Forbes, NTDOY stock dropped 6% in June 2021. The company’s stock ended June 15th with a 0.8% drop to $73.23. The following morning, its shares decreased by 3% in Tokyo. Due to the company’s 6% decline, it remains in doubt whether the stock will continue to plummet or if there will be a rise in Nintendo stocks.
If you look at the historical performance of the brand’s stocks, it may have a strong rebound in the near term.
Using the Trefis AI engine, you’ll see that returns for Nintendo stock average 2.6% in 21 trading days after experiencing a 5% fall in five days. This marks a 2.2% excess return.
Reasons Why You Should Buy Nintendo Stock:
- The potential launch of the new Nintendo Switch Pro could give the company a strong upside catalyst.
- Game sales are boosting Nintendo’s profits.
- Nintendo released 20 titles in 2021 that have sold over a million copies each.
- Animal Crossing: New Horizons has sold over 14 million copies.
- The company has sold 68 million Nintendo Switch consoles and over 456 million games to date.
Since the pandemic, digital sales account for almost half of Nintendo’s total sales in the first fiscal year 2021 which shows a growth of 139% year over year. These digital sales included online subscriptions, add-on video game content, and software for the Nintendo console. If you want to buy Nintendo stock, you should pay attention to these growing trends.
How to Buy Nintendo Stock
Since the ticker works on the Japan stock market, Nintendo investors from the US may want to know how to buy Nintendo stock stateside. Take a look at this next section to find out how you can buy Nintendo stock in the US.
American Depository Receipts
If you’re a US investor, you can purchase your Nintendo stocks by buying ADR (American Depository Receipts). These ADRs are traded on the American stock market.
ADRs have been around since 1927. They are given by banks or brokers and are sold to American investors who want to buy foreign shares. By utilizing ADRs, you can:
- Diversify your profile with foreign stocks
- Avoid high costs in the market
- Avoid taxes when buying from the Tokyo stock exchange
Choose Between NTDOY and NTDOF
The NTDOY stock makes it easier to control your stock total because it only represents 1/8 of a share. On the other hand, NTDOF stock is more expensive, and you’ll need to buy or sell an entire share.
Find a Suitable Broker
Another way to invest in Nintendo stock is to go through a broker that is licensed to trade on the Tokyo stock exchange. Firms such as Fidelity Investments are able to assist you with international investments.
Historically, the biggest concern for investors is that Nintendo hardware and software quickly peaks and then drops off as customers lose interest. However, the Switch and the latest wave of games seem to be bucking that trend as the company has managed to maintain sustained interest in its products. In that light, Nintendo stock seems to be a solid long-term investment, especially since they’ve had plenty of success in hardware and software sales.
What’s more, Nintendo stock is fairly affordable with 17 times trailing earnings. Additionally, Nintendo stock is less volatile than other types of stock in this market. Although the company has had a rocky history, Nintendo continues to grow and gain consumer trust.
So will you buy Nintendo stock, especially since there are talks of a new console launch? The company’s software shares continue to grow, but is this enough for investors to add Nintendo stock to their portfolio? Leave us a comment below and let us know your thoughts.
While foreign institutions and individuals own the most Nintendo stock in total (over 50% of shares). The biggest stakeholder is The Master Trust Bank of Japan, Ltd. It’s followed by the Custody Bank of Japan, Ltd., JP Morgan Chase Bank, The Nomura Trust and Banking Co., Ltd.
Nintendo has a net worth of $95 billion as of 2021.
Nintendo has two symbols NTDOY and NTDOF stock. The difference between the two is that NTDOY commands a higher volume of trading compared to NTDOF.
Nintendo became public in 1962. The company was listed on the Osaka Stock Exchange Second division after it became public.
Yes, Nintendo does pay out dividends. The company has paid out, on average, around 44.55% of net profits as dividends.
You should buy Nintendo NTDOY stock if you want an easier way to add or subtract your shares. It’s also more affordable compared to NTDOF.
As of Early July 2021, Nintendo stock has a PE ratio of 15.75.
Nintendo is listed on the Tokyo and Osaka stock exchanges but can be purchased elsewhere with depositary receipts.
This guide includes info on how to buy Nintendo stock in the US.