Nintendo stock surges to record high after Switch 2 pre-orders sell out
Why: The surge, which catapulted the company's market value to $92 billion, was sparked by the company's Switch 2 pre-order window opening up in the US.
And those pre-orders sold out fast.
As of Thursday afternoon, pre-orders were sold out across retailers, including Best Buy, Target, GameStop, and Walmart.
The console's pre-order date was postponed due to the Trump tariffs, as Nintendo sought to better understand their potential impact on its business.
While Nintendo didn't increase the price of its Switch 2 following the Trump tariffs, it did increase the price of Switch 2 accessories.
What it means: The swift pre-order sellouts indicate massive pent-up demand for the Switch 2 console. The original Switch console was released just over 8 years ago.
While the strong demand may not be too surprising given that the original Switch console was released eight years ago, it is impressive considering the console retails for $450, with most bundles being offered for about $500.
The high price tag and solid sales suggest that even amid concerns of rising inflation and a potential recession, consumers are willing to spend money on indulgences they want.
Analysts at JPMorgan expect the strong sales to continue.
"We think Switch 2's annual sales volume is likely to be 18 million units, putting it below 20 million units but expect steady build-up over the long term," JPMorgan's Junko Yamamura said in a note on Thursday.
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