Nintendo stock prices doubled as of July 19 due largely to the popularity of Pokemon Go. The mobile app game is now available in more than 30 countries.
Nintendo stocks in the Japanese stock exchange gained around 14 percent this week, according to Reuters. In just seven trading days the company has more than doubled its market capital. Nintendo is now worth around almost $43 billion. That astonishing increase started only when Pokemon Go went online in America.
The surge of Pokemon Go players also caused the instant popularity of Nintendo stocks among investors. Okasan Securities spokesperson Takashi Oba said that this the first time he witnessed a quick change of fortune in short span of time.
A single share of Nintendo is now worth almost $300 as of July 19. Barely two weeks ago, the price was only half that much. Nintendo stocks were the most traded share on Tuesday. It comprised around 25 percent of all traded stocks that day. Total turnover of Nintendo stocks on July 19 amounted to almost $66 billion.
Nintendo and developer Niantic Labs were surprised by the widespread popularity of Pokemon Go. There are talks that other famous Nintendo characters will also be included in future mobile apps and augmented reality games. Excitement is also building up over the upcoming release of the NX console.
An anonymous Japanese fund manager said that Nintendo is now being looked upon as augmented reality related company. This helped increased its value to investors who are now scrambling to acquire stocks of companies that develop Virtual reality or augmented reality products.
The manager also said that the profits that Nintendo is getting from Pokemon Go estimated to be around $471 million which makes the current Nintendo stock price quite reasonable. Nintendo however, surpassed Sony on July 19 in terms of market capitalization, according to Bloomberg.
