Nintendo reported today. It’s one of my largest ‘counter positioned’ investments and makes up 8% of my portfolio. I’m down 15% (excluding dividends) but have no intention to sell.
Here’s a summary of the latest earnings
Sales up 21.1%
Net profit up 17.7%
Sales of the OLED are driving game sales.
The new Zelda game smashed 19.5m units!
Digital sales continue to increase YoY. A fact the will drive gross margin.
For once the company revised earnings up! The market typically ignores earnings and instead reacts to Nintendo’s forecast.
The last year has been stellar for Nintendo (release of Zelda & the Mario Movie). My hope is that the can deliver on a new console and changes the market’s opinion.