Even with Pokemon Go, Nintendo shares fall 18% – Observer

It’s called Pokémon Go is the game of the moment and this was reflected in the company that owns it, Nintendo. In two weeks this success resulted in a recovery of 70% in company stock. But the very Japanese company left the notice to investors:. Revenue generated through its share of the Pokémon Company, which owns the rights to the game, would be limited and would not be reviewed in its revenue, reports Reuters

the notice had immediate effect and reflected on Monday in the Japanese market, with Nintendo shares to suffer a decline of 17.72%, the largest daily decline since 1990, according to Bloomberg. Only in the session on Monday, the market value of the company fell from 708,000 million yen (about six billion euros). Still, the company continues to be worth about 60% of that before the game’s release in Australia and New Zealand on 6 July.

The company reached double in value and market capitalization to increase 2.46 trillion yen (21.15 billion euros) in less than two weeks. But the rise in the securities value pike forced the management of Nintendo to put a brake on enthusiasm – that a statement sent Friday warned it would not make an upward revision of the estimates for revenues and profits, despite the success about the game. Made it clear that the impact of the application on their accounts would be limited.

Nintendo has a stake in Niantic, the creator of Pokemon Go, and also in The Pokémon Company. The size of the position is not public, but analysts at Macquarie estimate an effective economic participation of only 13% in the application.