Nintendo (NTDOY) business is poised to benefit from COVID-19. Last quarter Nintendo reported top-line growth of 108% and operating income growth of 576%. These results were even more impressive given there were shortages of Switch throughout the quarter. Despite this strength Nintendo trades at 23x last year’s earnings (excluding cash), while on track for significant earnings growth likely for 2020. Still with the Switch entering its fourth year, should investors be cautious adding during the peak of the cycle?
Price Performance:
Source: Koyfin
Hardware
Concerns around Switch units are likely overdone for a