Latest news with #ClayGriffin
Yahoo
14 hours ago
- Business
- Yahoo
Nintendo, Roblox Shares Climb On Positive Catalysts
Two top-performing video game stocks — Nintendo and Roblox — rose Tuesday on positive catalysts. In afternoon trading on the stock market today, Nintendo's American depositary receipts jumped nearly 4% to 21.58. MoffettNathanson analyst Clay Griffin reiterated his buy rating on Nintendo stock and raised his price target on the company's Japan-traded shares.
Wall Street Journal
02-04-2025
- Business
- Wall Street Journal
Nintendo Ups its Game With Launch of the New Switch 2
Can a Japanese company sell an expensive videogame console in the midst of a global trade war—and with a potential recession looming? Much is riding on Nintendo 7974 2.11%increase; green up pointing triangle pulling that off. Nintendo will launch the Switch 2 on June 5 for a starting price of $450 in the U.S., according to plans announced by the company Wednesday. The price is a sizable bump up from the $300 that the original Switch launched for in 2017. But that device has also become Nintendo's most popular home console ever—selling nearly 151 million units to date. Nintendo has also never gone eight years between new console launches; a gap of five to six years has been the company's norm, stretching back to the mid-1980s. That should mean plenty of pent-up demand for a machine that is also the only way for gamers to experience iconic franchises such as Mario, Donkey Kong and Zelda that are exclusive to Nintendo's platforms. The Switch 2 includes several new features and capabilities such as in-game chat. It will launch with a new iteration of the 'Mario Kart' series whose predecessor game sold more than 67 million units on the original Switch. Still, home runs are never a guarantee in the videogame business. Nintendo knows this all too well—the company has often followed popular consoles with less popular ones. And the Switch 2 has the unfortunate timing of hitting the market in the midst of a global trade war, where the U.S. is ratcheting up tariffs on foreign goods, and foreign countries are responding in kind. Many of Nintendo's devices are produced in China, so they could be hit with a 20% tariff. Still, Wall Street isn't betting on a miss. Analysts expect Nintendo's revenue to surge 62% in the current fiscal year ending in March on the strength of the new console, according to consensus estimates from Visible Alpha. Double-digit-percentage growth is expected to remain for the next two years, with fiscal 2027 revenue expected to exceed previous peaks from past console cycles. That has propelled Nintendo's share price 12% higher so far this year—a period in which most other game stocks and broad market indexes have slumped on trade-war fears. 'Good [intellectual property], preferably owned and controlled, is the antidote to low-end supply disruption,' MoffettNathanson analyst Clay Griffin wrote in a note to clients last month. 'Nintendo has it in spades, has clear cost superiority, and Switch 2 will cement its ability to capture more 'platform' economics than ever before.' The new Switch should easily keep Nintendo in the game. Write to Dan Gallagher at
Yahoo
31-01-2025
- Business
- Yahoo
EA Stock Rises on Analyst Upgrade, Bioware Layoffs Shake Up Gaming Giant
Electronic Arts (NASDAQ:EA) stock surged 3.43% to $122.76 as of 11:24 AM (ET) following an analyst upgrade and layoffs at Bioware. MoffettNathanson analyst Clay Griffin upgraded EA from Neutral to Buy, maintaining a $145 price target, which implies a 22.18% upside. The move comes after concerns over Dragon Age: The Veilguard, which failed to meet sales expectations and faced gamer backlash. However, Griffin now believes the situation may not be as dire as initially feared. Warning! GuruFocus has detected 4 Warning Signs with EA. Alongside the upgrade, Bioware implemented layoffs as part of a broader restructuring effort. While some employees were reassigned to other teams, the cuts followed the game's weak performance and disappointing preliminary earnings data. Despite today's rally, EA stock remains down more than 18% year-to-date and over 13% over the past year. Investors now look ahead to EA's earnings report on Tuesday, which could be a major catalyst for further stock movement. This article first appeared on GuruFocus. Sign in to access your portfolio
