After just seven sessions, shares of Japanese company Nintendo have doubled their market capitalization up to $42.5 billion, since the US launch of Pokemon GO.
Now available for download in 35 countries , Pokemon GO’s massive success has triggered immense buying of Nintendo shares, to the surprise of even some of the market’s most seasoned players.
Nintendo’s market cap doubles
Okasan Securities’ senior strategist, Takashi Oba, says he’s never seen such a large company have shares change so rapidly and in so little time.
Since the game launched on July 6th, Nintendo shares have gained over 100% in value.
Nintendo shares’ turnover has reached 703.6 billion yen, which surpasses the previous record it recently set at 476 billion yen. Nintendo profits should get a boost of 50 billion yen thanks to Pokemon GO and related gadgets. On the main board at Tokyo’s Stock Exchange, Nintendo shares were a quarter of all trading.
Pokemon GO’s success wasn’t forseen even by those who created it and has raised hopes that Nintendo can strengthen its venture into augmented reality by capitalizing on a variety of their most popular characters, from Super Mario to Zelda.
Augmented and virtual reality are not a new focus in the market, but virtually no one was expecting Nintendo to be in this area.
The game’s popularity is even giving a lift to some shares that have a very slight connection to the game. For example, a bakery firm with 25 billion yen annual sales, First Baking Co, had its shares go up 18% recently since they sell “Pokemon Bread,” as well as other breads that come in bags decorated with Pokemon characters.
Do you have any theories on how Pokemon GO will affect the markets further? Share your opinions in the comments below and see more related articles: how to download Pokemon GO on Android and our guide for installing Pokemon GO on iOS.