NTDOY - Did We Just See Peak Nintendo?
Video game giant Nintendo (OTC: NTDOY) is posting some huge numbers thanks to the COVID-19 pandemic fueling gaming demand, as well as superb execution on the Nintendo Switch console in its fourth year since launch.
Still, Nintendo's stellar results beg the question: Where can earnings possibly go from here? The video game business is notoriously cyclical based on console releases. The past year could mark the apex of the Switch's earning power.
On the other hand, some believe Nintendo's beloved characters and brand power could open up new markets beyond video games, making its addressable market bigger and results more consistent. If that's the case, Nintendo shares could still be a buy. So which is it?
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Did We Just See "Peak" Nintendo?