Nintendo's Switch 2 sells out prior to launch, pushing Nintendo's stock to a new all-time high.
In a exciting turn of events, Nintendo's stock soared to new heights in Tokyo trading, following a record-breaking day in the US where the tech giant's shares hit an all-time high. The rally came on the heels of the sell-out of pre-orders for the highly anticipated Nintendo Switch 2 console in the U.S.
The surge in share price catapulted Nintendo's market value to a staggering $92 billion (approximately €81 billion). On Thursday, Nintendo's ADR shares skyrocketed by up to 7 percent, reaching a record high of €17. The gains continued into Friday, with the company's shares listed in Japan jumping an additional 4 percent.
The impressive uptick was set off by the opening of pre-orders for the Switch 2 in the U.S., which sold out in record time. By Thursday afternoon, pre-orders at major retailers such as Best Buy, Target, GameStop, and Walmart were completely sold out. The console is also hard to find on shelves in Germany.
The pre-order date was initially delayed due to Trump tariffs, as Nintendo sought to better understand the potential impact on its business. Despite this, the company opted not to increase the price of the Switch 2 following the tariffs, but did hike the prices of Switch 2 accessories.
The rapid sell-out of pre-orders suggests a massive pent-up demand for the Switch 2 console, which originally hit the market over eight years ago. While the strong demand may not come as a shock given the age of the original console, it still shows the enduring appeal of the Nintendo brand.
Even with escalating inflation and fears of a potential recession, consumers seem more than willing to splurge on desirable luxury goods like the Nintendo Switch 2. The high price point of the console ($450, or approximately €396) and most bundles ($500, or around €440) has not deterred eager buyers.
Analysts at JPMorgan predict that the strong sales will persist. In a note released on Thursday, analyst Junko Yamamura stated, "We expect the annual sales of the Switch 2 to be around 18 million units, remaining below 20 million units but growing steadily in the long run."
If you're keen on keeping up with the latest tech trends, sticking with Nintendo might just be the ticket. Happy gaming!
The surge in Nintendo's stock price, following a record-breaking day for its ADR shares in the US, was a direct result of the contentpass of pre-orders for the Nintendo Switch 2 console. Despite escalating inflation and fears of a potential recession, consumers in Germany are struggling to find the Nintendo Switch 2 onstore shelves, suggesting that the enduring appeal of the Nintendo brand extends beyond just the U.S. JPMorgan analysts predict that the strong sales of the Nintendo Switch 2 will persist, with annual sales estimated to be around 18 million units.
