Goldman Sachs wants Nintendo something fierce today. Like, seriously, get a ridiculously expensive Ritz-Carlton penthouse room already.
Goldman Sachs believes the Wii and DS maker can approach Apple-like levels of success because of its “innovative business model.” Nintendo may also raise its earnings forecast again. According to Reuters, Nintendo shares hit a record high on Wednesday thanks in part to Goldman Sachs, which initiated coverage with a “Buy” rating, and further speculation the house of Mario could soon raise its earnings forecast again. Nintendo shares on Wednesday rose as high as 64,800 yen, which is an all-time high for the company. The stock closed up 2.7 percent at 64,300 yen. “We believe Nintendo’s talent in creating new markets, evident from the launch of the DS and Wii, could bring it close to the level of Apple, whose high valuations are due in large part to its innovative business model,” Goldman Sachs stated in a report.
Keep in mind that this analysis is being given BEFORE Super Mario Galaxy and Smash Bros. Brawl hit the streets; the former title having caused a collective love explosion across the Internet when it’s colorful intro debuted yesterday afternoon. Truly, a crazy, crazy time to be involved in gaming (I think the Goldman Sachs fellas probably just finished up a round of Phantom Hourglass and couldn’t see straight when they wrote this today).
I was reading all about this early this morning on Gamasutra. It's news like this that makes me wish John Q. Public was intelligent enough to understand exactly how and why Nintendo is truly winning in this generation. It's exciting to think of how this success is going to affect the industry 5 to 10 years from now (assuming they don't blow it like with N64).
Off of Wall Street and out of the Nikkei, I'm just freakin' stoked for Galaxy and Brawl. I'm almost done with Metroid Prime 3 (hit 100% last night, on my way now to finish the fight) so my gaming schedule is just waiting now to fill in the hours.
loving it… once again: brokerage acct ftw.
Even at its current high, I think Nintendo will see more upside through the end of the year. Let's say 75 by new Years? Let her drop back below 65 over the next couple weeks and get in before November really hits.
Oh, and 'talent in creating new markets'?? LOL Talk about pandering to the mainstream investor crowd. This is must be a new talent, post GC, N64… even Super Nintendo (which struggled against sega). N's success with handhelds is not historically reflected in its console market. Where was this talent 2 years ago?
'Talent' is such a BS term in this industry.