MSFT - Nintendo: Cyclicality Concerns Already More Than Priced In
- Nintendo is a great business that generates high profit margins, has an outstanding IP portfolio, and its safety profile is superb.
- Concerns that sales will decrease in the short term have been more than priced in, as the stock price dropped by almost a third in 2021.
- Historically Nintendo was always able to bounce back from decreasing revenues and there is no reason to believe that this will change in the future.
- Even based on the lower pre-COVID earnings, the company seems cheaply valued, with the stock price having at least a 40% upside.
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Nintendo: Cyclicality Concerns Already More Than Priced In