This video will discuss Nintendo (NTDOY -1.52%) and why investors are not buying this undervalued stock. It's no secret that the gaming industry is booming, and Nintendo, being a household name, has seen this success firsthand. So why is the stock so cheap?
The Wii curse
One of the main reasons investors are unwilling to take a chance on Nintendo is what happened to the Wii console. The Wii was and still is the best-selling console in U.S. history, but its popularity has died down, leaving investors wondering if the same thing will happen to the Switch console.
Switch the savior
The Nintendo Switch is certainly making a name for itself. It has been the best-selling console globally for the last couple of years and has been out of stock in many countries around the world during that time. Right now, the Switch is the second-best-selling console in U.S. history, only behind the Wii and surpassing another Nintendo console, the DS. Nintendo expects to make another 30 million Switch units in 2021 and is rumored to be launching a new and better one.
Nintendo is finally using its IP correctly. It has planned four theme parks around the world, with the one in Japan already open. The three other locations will be Orlando, Universal Studios Hollywood, and Universal Studios Singapore. This will be another way to generate revenue and get more brand exposure around the world.
Be sure to check out the video below for full insight.
*Stock prices used were the closing prices of May 19, 2021. The video was published on May 20, 2021.