Nintendo Shares Fall 10%

Jan. 29 9:48 AM by Lynxara

Part of Nintendo's success with the Wii and DS has been glowing investment recommendations and soaring stock prices. A few pundits worried that Nintendo had gotten overvalued, and it seemed it had. Shortly after announcing its record high earnings, Nintendo's stock value took a 10% dive on Monday. From the Reuters coverage:

"This has little to do with the company itself, but a lot to do with market sentiment," said Mizuho Asset Management fund manager Yoshihisa Okamoto.

"In the current market environment, investors rush to sell at the first sign of negative developments or exhaustion of positive news."

Shares in Nintendo fell 9.7 percent on Monday, hitting their downward daily limit of 46,800 yen and extending their losing streak to a third trading day.

Nintendo's hot streak started roughly two years ago, shortly after the Wii launched and became a hot commodity. There's been a lot of speculation about Wii-mania cooling off in Japan, and this may be proof of that happening.

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