Nintendo Stock Drops 11% Following Financial Report

The price of Nintendo's shares dropped by 11% on February 4, following the company's most recent financial report.

According to the data from Google Finance, on February 4, the company's shares cost 8,973 JPY, which marked a decrease of about 11% compared with the price of 10,180 JPY the day before. As stated in the Bloomberg report, this represents the largest drop seen in 18 months.

The decrease occurred after the company shared its financial results. The document shows strong sales figures, with the Switch 2 selling over 7 million units this quarter and 17.38 million units since its launch. However, lower profit margins on the console pressured results, and although sales and revenue were mostly up, Nintendo didn't meet profit estimates.

Nintendo President Shuntaro Furukawa said the company is operating in a challenging cost environment as component prices rise, but added that the situation is currently manageable. He noted that Nintendo is working closely with suppliers over the long term to secure a steady supply of chips. "We do not expect major impact during the fourth quarter of this year. However, from the next fiscal year onward, if this price hike lasts longer than anticipated, it could potentially put pressure on our profitability."

It was recently reported that Nintendo's stock price in Japan decreased by 33% from its all-time high last August.

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