Nintendo Shares Are Up 120% Thanks to Pokemon Go Craze

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

Can anything stop the great Nintendo rally of 2016?

Nintendo shares had another banner day on Tuesday, surging more than 14% in Tokyo amid widespread mania over the company’s sensational Pokemon Go game.

The stock’s performance following the release of the augmented reality game is staggering: Shares have risen by more than 120% since July 6, and nearly 60% over the past five trading sessions.

This Animal Shelter is Using the Pokemon Go Craze to Help Save Dogs

Nintendo’s market cap in Tokyo is now 4.5 trillion yen ($42 billion). That’s more than Sony (4.1 trillion yen), Canon (4 trillion yen), Panasonic (2.4 trillion yen) or Toshiba (1.3 trillion yen).

Pokemon Go is a legitimate sensation — ranking as the top free downloaded app on both Apple’s App Store as well as Google’s Play store for Android devices.

Investors are hoping that Nintendo will be able to cash in on the purchase of add-on features for the game.

Advertisement

It’s a model that many mobile game developers use. Make the game free for download, get them hooked and then sell extra items to enhance the game to generate big revenue.

The game’s immense popularity could also lead to the proverbial halo effect for Nintendo, people who may not have been familiar with the company’s many offerings deciding to buy more Nintendo products.

Is a doubling in the company’s stock price justified? Perhaps, but the case hinges on Nintendo turning Pokemon 2.0 into much more than just a fad.

— Paul R. La Monica contributed reporting.