Nintendo is a Public Company, But You Won't Find it on NYSE
Nintendo is a popular name in video games but how do savvy investors get a piece of the action?
Aug. 17 2020, Updated 1:52 p.m. ET
Started as a playing card company in 1989, the video game powerhouse known as Nintendo has since become a household name. They diversified over the years, eventually moving to video games and gaining worldwide fame in the 1970s with the inception of the Nintendo Entertainment System (NES). That innovation set them apart and, today, the Japanese multinational corporation is among the top video game and electronics manufacturers in the world.
The company’s renown and constant innovation has many investors wondering, is Nintendo’s stock publicly traded? And how does one buy-in?
Is Nintendo a publicly traded company?
Nintendo's stock trades on the Tokyo and Osaka exchanges. Because of this, it can be difficult for many U.S. investors to understand how to go about purchasing shares. Nintendo offers two different buy options: NTDOY and NTDOF.
They differ in several ways. NTDOF is the more expensive of the two and requires investors to purchase or sell an entire share. Meanwhile, NTDOY only represents 1/8 of a share, allowing investors to more easily add and subtract their Nintendo shares.
How do I buy Nintendo Stock?
Once you have determined which Nintendo stock you want to purchase, NTDOY or NTDOF, you need to decide how much you would like to invest, based on the current value of Nintendo stock. This obviously has more to with how much you have available to invest and how much you’re willing to risk through this investment.
When all decisions have been made, you will need to find a broker licensed to trade on the Tokyo Stock Exchange. Seek out larger brokerage firms for this, as many are better equipped to trade on these international exchanges. Still, many investors may still be wondering, even if I can, should I be buying Nintendo stock?
What do Nintendo consumers think?
The stock has undergone some ups and downs since it began trading a few decades ago. Almost all of these peaks and furrows are tied directly to the release and reception of Nintendo’s latest innovation, whether it be a new video game console or the latest game itself. Therefore, deciding whether or not to buy or sell Nintendo is intrinsically linked to how well received it is by consumers.
As with most similar companies, Nintendo’s stock prices generally coincide with their new product releases, specifically when it comes to new video games. As always, social media and consumer reception can make or break a company, even one as renowned as Nintendo. Still, whether by nostalgia or brand loyalty, most consumers hold high opinions of the video game giant.
Should I buy Nintendo Stock?
Nintendo has had several hits and misses over the years, which can make the prospect of investing slightly risky on the surface. Nevertheless, their consistency in terms of consumer praise cannot be undersold. Their latest release of the Nintendo Switch console has been very successful, especially in the wake of the coronavirus epidemic. Consumers under stay-at-home mandates are constantly looking for ways to entertain themselves and the success of these devices bodes well for the future of the company.
The success of Pokémon Go, developed by Niantic in collaboration with Nintendo, as well as Super Mario Run, have ensured Nintendo will continue to target the mobile gaming market as well. This decision tracks with the company’s continued policy of diversification and ultimately makes Nintendo a steady choice for investors.