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I'm extremely bullish on nintendo. I have about 1500 shares at $12.70, so my money is where my mouth is.
I'm going to write a relatively detailed reasoning just because I couldn't find a strong opinion on google.
Nintendo is trading at such a low multiple - they are expanding (successfully) into a multi-media empire with movies, theme parks, video games, and merchandise. They own the 1st and 6th highest revenue IP's in history (Pokemon #1, Mario #6). Pokemon's ownership is only slightly complicated - nintendo co-owns the "Pokemon company" alongside game freak and creatures inc. Only nintendo will ever have pokemon, barring a change in the entire world. They also own 5 of the 20 best selling video game franchises of all time. (Mario, Pokemon, Wii (sports, etc), Zelda, nintendogs).
I doubt I need to go into how successful the poke park and universal theme parks have been - enormous cash cows. Nintendo is only thickening their war chest. (I hardly need to mention how huge the mario movies have been).
So what's the biggest reason nintendo has been struggling stock-wise? 2 reasons, actually. First, software bottleneck. Nintendo hasn't released games or news on games at nearly their usual cadence, and the games they're revealing are much lower prestige than mainline mario, zelda, pokemon, etc. - So what are the outcomes on that issue?
Either A) Nintendo starts releasing games????
or
B) Nintendo decides to roll over and go out of business for no reason???
So that's issue 1 solved - games are obviously coming. What's issue 2? Hardware/memory costs.
Guess what happens when memory chip prices totally bottom out? Nintendo gets a higher profit margin on their hardware, and they can still leave the console prices at new increased levels. New games drop, hardware cheaper to make... people buy everything.
Memory chips go down, nintendo margins go up, that crushes analysts expectations, boom.
I guess what is still missing here is my price target goalposts. I'll make it simple, I won't call an absolute top or bottom - but here's what I'm waiting to see; We're at a 3 year low (were exactly there 2 weeks ago), less than a year from all time highs, more profitable initiatives than in their history. There's still so much more I could say about the Pokemon anime, manga licensing, animated movies...
I'm **expecting** above 20 by the end of this holiday season. I'm **expecting** 30 by Q2 next year, I'm **expecting** 40 by EoY 2027, or Q1 2028.
Bottom line question is simple. Is nintendo going out of business, or are they going to expand in 20 directions?
Edit -=- It's in the mid 10's (like 10.60) today, an unbelievable price. Also, I'm not a financial advisor, so my expectations & conclusions should not be considered financial advice.