Pokémon GO's massive success had a very noticeable impact on Nintendo's stock over the past few weeks. On July 10th, the company enjoyed its most successful day on the stock market since 1983, the year Nintendo released the original Super Mario Bros. Overall, in the past ten days, the company's stock doubled and even surpassed Sony's market cap value of $38 billion.
It seems like Nintendo's triumphant spike has started to come to a stop, however. Yesterday, the company's stock value dropped by 4.86% overall, and the price of company shares dropped by 8.18%.
Quartz has released a detailed analysis of this sudden drop, which presents several explanations for the company's dive. The biggest event that could have caused the drop was the delay of Pokémon GO's Japanese release. Yesterday, after an unexpected leak from McDonald's, one of the game's sponsors, Nintendo decided to delay the game's launch in the region. Since Japan is the world's second-biggest mobile market and is a huge potential market for Pokémon GO, this delay could have had a significant impact on the company's stock.
It's also possible that this drop had no direct cause; Nintendo's stock could simply be balancing out after its ten-day surge, as many shareholders are starting to sell their stock in the company, since they believe its market value has peaked.
What do you guys think? Was this drop inevitable? Could the delay of the game's Japanese release have had this big of an impact? Will the stock continue to go down over the next few days? Let us know in the comments below!