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...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/1164213999?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2021-08-05 21:04","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"1164213999","market":"us","top_or_hot":-1,"title":"Nintendo Needs More Than Flashy Buybacks","media":"The Wall Street Journal","content":"<div>\n<p>A big share buyback will help cushion the blow from disappointing results, but isn’t a strategy for the future.\n\nA surprise share buyback from Japanese gaming champion  Nintendo Co., Ltd.  should help...</p>\n\n<a href=\"https://www.wsj.com/articles/nintendo-needs-more-than-flashy-buybacks-11628159382?mod=markets_lead_pos10\">Source Link</a>\n\n</div>\n","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Nintendo Needs More Than Flashy Buybacks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNintendo Needs More Than Flashy Buybacks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-08-05 21:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.wsj.com/articles/nintendo-needs-more-than-flashy-buybacks-11628159382?mod=markets_lead_pos10><strong>The Wall Street Journal</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>A big share buyback will help cushion the blow from disappointing results, but isn’t a strategy for the future.\n\nA surprise share buyback from Japanese gaming champion  Nintendo Co., Ltd.  should help...</p>\n\n<a href=\"https://www.wsj.com/articles/nintendo-needs-more-than-flashy-buybacks-11628159382?mod=markets_lead_pos10\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"NTDOY","symbol_name":"任天堂","start_time":0,"source_url":"https://www.wsj.com/articles/nintendo-needs-more-than-flashy-buybacks-11628159382?mod=markets_lead_pos10","article_id":"1164213999","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1164213999","pubTimestamp":1628168662,"sourceInfo":null,"weMediaInfo":null,"summary":"A big share buyback will help cushion the blow from disappointing results, but isn’t a strategy for ","collect":0,"end_time":0,"defaultTopTitle":"wsj.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"NTDOY":"任天堂","NTDOF":"Nintendo Co., Ltd."},"translate_title":"任天堂需要的不仅仅是浮华的回购","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NTDOF":0.9,"NTDOY":0.9},"content_text":"A big share buyback will help cushion the blow from disappointing results, but isn’t a strategy for the future.\n\nA surprise share buyback from Japanese gaming champion  Nintendo Co., Ltd.  should help soothe investors who have held on as the stock dropped more than 10% this year.\nNintendo is clearly cash rich, but it needs to articulate a clearer vision for the future as the stay-at-home boost from the pandemic fades.\nThe Japanese game company on Thursday reported a 17% decline in operating profit for the quarter ending in June, while revenue dropped 10%—both lower than analysts’ estimates on S&P Global Market Intelligence. 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. That seems to indicate it could just be a one-off since the boost from Covid-19 likely won’t be repeated.\nThe rare buyback will likely boost Nintendo’s share price in the short term, but the company needs to prepare for leaner times ahead too. The stock has dropped 14% this year, underperforming the broader Japanese market as well as peers such asSony.One worry is thetraditionally cyclical natureof the console business. The pandemic has probably prolonged the cycle, but the Switch console is likely past the middle, entering its fifth year. Growing Nintendo’s online business would help improve margins. Better use of its popular intellectual properties could also help diversify income sources.\nNintendo reaped a windfall from the pandemic. Now it needs to convince investors it has a plan for the world after.","kind":null,"is_publish_news":false,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":893502660,"gmtCreate":1628273332950,"gmtModify":1703504405003,"author":{"id":"3557024931927052","authorId":"3557024931927052","name":"nctony","avatar":"https://static.tigerbbs.com/1449dfc5089ded0e8efe303fd4dd43b1","vip":1,"crmLevel":2,"crmLevelSwitch":1,"idStr":"3557024931927052","authorIdStr":"3557024931927052"},"htmlText":"Is a good buy from now[財迷]&nbsp;","listText":"Is a good buy from now[財迷]&nbsp;","text":"Is a good buy from now[財迷]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/893502660","repostId":1164213999,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":899565399,"gmtCreate":1628207055711,"gmtModify":1703503030140,"author":{"id":"3574547862188011","authorId":"3574547862188011","name":"kcwang4982","avatar":"https://static.tigerbbs.com/c04d43cdb908fc01d7c2eb3734205700","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3574547862188011","authorIdStr":"3574547862188011"},"htmlText":"Gambare","listText":"Gambare","text":"Gambare","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/899565399","repostId":1164213999,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5440530,"gmtCreate":1628207090502,"gmtModify":1663231991242,"authorId":3574547862188011,"author":{"id":3574547862188011,"idStr":"3574547862188011","authorId":3574547862188011,"name":"kcwang4982","avatar":"https://static.tigerbbs.com/c04d43cdb908fc01d7c2eb3734205700","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":899565399,"type":1,"supId":0,"prevId":0,"content":"Skills","text":"Skills","html":"Skills"}],"langContent":"EN"},{"id":899225748,"gmtCreate":1628202719784,"gmtModify":1703502905496,"author":{"id":"4089109132462390","authorId":"4089109132462390","name":"Likeabull","avatar":"https://static.tigerbbs.com/cbea55e98757d0fd9e84090cea5652ab","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"4089109132462390","authorIdStr":"4089109132462390"},"htmlText":"Good","listText":"Good","text":"Good","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/899225748","repostId":1164213999,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":899890073,"gmtCreate":1628172128792,"gmtModify":1703502544692,"author":{"id":"3582938826092533","authorId":"3582938826092533","name":"SFern","avatar":"https://static.tigerbbs.com/81a61c88544234a53cc63054a8f769b1","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3582938826092533","authorIdStr":"3582938826092533"},"htmlText":"Good","listText":"Good","text":"Good","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/899890073","repostId":1164213999,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5437280,"gmtCreate":1628172139298,"gmtModify":1663231976154,"authorId":3582938826092533,"author":{"id":3582938826092533,"idStr":"3582938826092533","authorId":3582938826092533,"name":"SFern","avatar":"https://static.tigerbbs.com/81a61c88544234a53cc63054a8f769b1","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":899890073,"type":1,"supId":0,"prevId":0,"content":"Lol","text":"Lol","html":"Lol"}],"langContent":"EN"},{"id":899809049,"gmtCreate":1628171783881,"gmtModify":1703502531608,"author":{"id":"3574379362062891","authorId":"3574379362062891","name":"teow0023","avatar":"https://static.tigerbbs.com/65fec6733e2cc640e16afc0ce4c21f79","vip":1,"crmLevel":3,"crmLevelSwitch":0,"idStr":"3574379362062891","authorIdStr":"3574379362062891"},"htmlText":"Like!","listText":"Like!","text":"Like!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/899809049","repostId":1164213999,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":899174052,"gmtCreate":1628171671276,"gmtModify":1703502527517,"author":{"id":"3581809688048652","authorId":"3581809688048652","name":"lowniu","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3581809688048652","authorIdStr":"3581809688048652"},"htmlText":"Like 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"}