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Nintendo leaps 25% on Pokemon GO but high profits still far away

Nintendo

Nintendo shares in Japan surged on hopes that the new Pokémon GO app would give the company’s mobile gaming business a serious boost.

The stock closed up 24.52 per cent on Monday at 20,260 yen (£154.60) per share; this followed Friday’s gains of some 8.9 per cent. Reuters reported that the company had added $7.5 billion (£5.81 billion) to its market value in the past two sessions, while volume on Monday was at an October 2015 high.

David Gibson, an analyst with Macquarie Capital Securities in Japan, told CNBC’s “Street Signs” that Friday’s rally in Nintendo stock was all about the app’s chart-topping performance in the U.S., while Monday’s rally was “all about anticipating a very strong launch in Japan any day now.”

The app was rolled out on July 6 and is currently available in the U.S., where it’s dominating the list of top free apps on the App Store, as well as in Australia and New Zealand. It is expected to be released in Japan soon.

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Paul

The author Paul