Nintendo Stock is Getting Hammered Again as Investors Flood for the Exits

nintendo-logoShares of video game publisher Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY) were plunging again Monday morning, as the fallout from the Japanese company’s recent admission continued to take shape.

The admission, essentially, was that Nintendo was unlikely to profit much from the unparalleled success of Pokemon Go. Pokemon Go is a mobile game that has taken the world by storm over the past few weeks, seeing record-setting adoption numbers, causing flash mobs to form in major cities, and is even reportedly responsible for multiple car accidents.

Nintendo, which owns about a third of the Pokemon Company, saw its stock surge in recent weeks, with investors assuming it would profit handsomely from Pokemon Go’s success. With that no longer being the case, Nintendo shares have snapped right back to reality.

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Nintendo shares plunged 18% on Monday in Tokyo, which triggered the exchange’s circuit breaker on the stock to prevent further losses. That 18% loss is the maximum allowed in Japanese markets, and is the biggest loss the video game giant had suffered since 1990. Nintendo officially trades on Japan’s Nikkei stock market, but also trades in the U.S. over-the-counter.

Shares of Nintendo’s U.S. ticker, NTDOY, fell $0.96 (-3.31%) to $28.04 in premarket trading Monday, but investors can expect much steeper losses once the markets open here in America.

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