Nintendo (NTDOY) Stock Tanks After Pokemon Go Earnings Downplayed

Nintendo (NTDOY) is falling in early morning trading on Monday as the company undervalued the impact of Pokemon Go on its earnings.
By Annie Palmer ,

NEW YORK (TheStreet) -- Shares of Nintendo (NTDOY) are sliding 10.55% to $29.00 in early morning trading on Monday after the company said Pokemon Go sales would produce little impact on its earnings. 

The Japanese game creator said revenue generated from its 32% stake in affiliate Pokemon Company, which holds the rights to Pokemon, would be limited. Revenue from Pokemon GO Plus, an added feature of the Pokemon Go app produced by Nintendo, has already been factored into the company's earnings, Nintendo added.

Despite the company's take on the app's impact, analysts believe Pokemon Go will have a major impact on Nintendo's earnings, Reuters reports. Nintendo is slated to post first-quarter results on Wednesday.

Since the app's release, shares of Nintendo have skyrocketed about 60%, injecting $12 billion in market value, Reuters reports. The company expects a 37% increase in operating profit to $425 million this year.

Last week, Apple (AAPL) announced that Pokemon Go broke the all-time record of the most downloaded app in its first week. Apple hasn't released a download count for the app yet. 

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