How Will Nintendo (NTDOY) Stock Perform as Analyst Sees Power of Virtual Reality?

Nintendo's (NTDOY) Pokemon Go acts as a potential catalyst for virtual reality investment and proves that augmented reality is not over-hyped, Piper Jaffray said.
By Natalie Walters ,

NEW YORK (TheStreet) -- Although Nintendo (NTDOY)  stock ended its 10 day Pokemon Go-related surge yesterday, the popularity of the game shows the power of virtual reality, Piper Jaffray wrote in an analyst note. 

Piper Jaffray expects Pokemon Go to act as a catalyst for virtual reality investment from large tech companies like Facebook (FB), APPLE (AAPL) and Google (GOOGL).

The firm has been conducting a "Reality Check" survey on a monthly basis for the past three months that focuses on both virtual reality and mixed reality and has concluded that virtual reality is the start of the next computer paradigm that will take over computers, TVs and smartphones. 

Pokemon Go was the focus of the most recent "Reality Check" as it's the first widely adopted version of mixed reality and proves to investors that virtual reality is worth watching, the firm wrote. While some investors once saw virtual reality as over-hyped, they now see how much money a well-designed augmented reality game can generate.

Shares of Nintendo are down 2.48% to $32.98 in mid-morning trading, as Pokemon Go's Japan release was delayed yesterday. 

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