Nintendo Needs More Than Flashy Buybacks

The Wall Street Journal2021-08-05

A big share buyback will help cushion the blow from disappointing results, but isn’t a strategy for the future. A surprise share buyback from Japanese gaming champion Nintendo Co., Ltd. should help...

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Comments

nctony
2021-08-07
nctony
Is a good buy from now[財迷]
kcwang4982
2021-08-06
kcwang4982
Gambare
- kcwang4982:
  Skills
Likeabull
2021-08-06
Likeabull
Good
SFern
2021-08-05
SFern
Good
- SFern:
  Lol
teow0023
2021-08-05
teow0023
Like!
lowniu
2021-08-05
lowniu
Like please. Thx
- CMK30:
  Sure

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Nintendo’s profit decline isn’t a surprise given its exceptional performance last year due to stay-at-home demand. The company sold fewer of its Switch consoles and games during the quarter, compared with the same period last year. “Animal Crossing: New Horizons,” released in April last year, isone of its fastest-selling games. Component shortages also continue to be an issue in production and distribution of its consoles.\nWhat surprised investors is Nintendo’s decision to spend up to ¥100 billion, the equivalent of $910 million, to buy back 1.51% of its own stock. Buybacks arerare for the Japanese company—last one was around ¥30 billion in 2019. Investors have long hoped Nintendo wouldimprove its capital allocation. The company is sitting on around $10 billion of cash as well as nearly $6 billion of securities. Nintendo said its strong cash position, due to better-than-expected business from Switch, is the reason for the buyback. 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please. Thx&nbsp;","listText":"Like please. Thx&nbsp;","text":"Like please. Thx","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/899174052","repostId":1164213999,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5437525,"gmtCreate":1628173292377,"gmtModify":1663231976945,"authorId":3574125117754882,"author":{"id":3574125117754882,"idStr":"3574125117754882","authorId":3574125117754882,"name":"CMK30","avatar":"https://static.tigerbbs.com/43c4c66c8dccee80d1a55babd7965c97","vip":1,"currentWearingBadge":{"badgeId":"7a9f168ff73447fe856ed6c938b61789-1","templateUuid":"7a9f168ff73447fe856ed6c938b61789","name":"Knowledgeable Investor","description":"Traded more than 10 stocks","bigImgUrl":"https://static.tigerbbs.com/e74cc24115c4fbae6154ec1b1041bf47","smallImgUrl":"https://static.tigerbbs.com/d48265cbfd97c57f9048db29f22227b0","grayImgUrl":"https://static.tigerbbs.com/76c6d6898b073c77e1c537ebe9ac1c57","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2022.01.27","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1102},"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":899174052,"type":1,"supId":0,"prevId":0,"content":"Sure","text":"Sure","html":"Sure"}],"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":92,"commentSize":16,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/1164213999"}