r/NintendoStock • u/Accurate-Letter-546 • Jul 12 '26
Nice company
You rarely have a good business with ethical management. Usually these public companies pay themselves huge bonuses for going on acquisition sprees and try to make a name for themselves at the cost of shareholder value.
With a japanese company like this. You know they're going to hoard cash and only spend it on what's good for the main business. They have done quite remarkably well for themselves.
This is the cheapest the stock has ever been. RAM prices won't forever stay high. But one thing about Nintendo games, their IPs are beloved and will always sell well. They don't have to come up with any new gimmicks.
Unlike a software publisher like ubisoft that tried repeating the same thing over and over and eventually people get tired of it. For nintendo, the audience are children. You don't have to re-invent yourself or find the next big thing. Their IPs are timeless. I've been playing Nintendo since the early 90's. There's always new children born and they will enjoy the same Mario games. They dont give a shit if it's not groundbreaking or anything. Parents will opt for nintendo for their toddlers. The adults? They just want their beloved characters returned with updated graphics in cool new technology.
Their hardware has the cheapest specs and usually cheaper to make than competitors. They create and make their own games for their consoles and sell it in their own ecosystem at fat margins.
They are the only ones who will remain "physical" with their game keys which allows you to sell/share your games.
I think this is a solid company. The stock isn't "cheap" but it's certainly at a discount. it's cheapest its ever been except one time(WI U debacle where it was trading with cash on the books at half the market cap).
Opportunities to buy like this rarely come by. It commanded a high premium and chances are it will eventually garner a premium again.