Nintendo stock a ‘strong buy’ thanks to the Switch and NES Classic

Nintendo’s fortunes just keep looking brighter according to most business articles this year. The Switch and NES Classic both helped the company tremendously in recent times, and the upcoming SNES Classic will also give another strong push forward. Company executives must be rolling in a sea of money. Perhaps they take daily swims in the green paper.

A recent article posted on MSN appears no different, as the author makes the case for picking an older, familiar company such as Nintendo.

“While many traders are understandably fixated on finding the next great unknown stock, seasoned investors know that sometimes our best stocks come from the tried-and-true brands that we all recognize. In the broader consumer electronics space, one of those legacy brands is Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY).”

He then gives specific reasons for why Nintendo is succeeding.

“Nintendo’s incredible year on Wall Street is owed directly to the insane performance of its hardware and software. The company’s new Nintendo Switch has been flying off the shelves, and the popularity of exclusive games like The Legend of Zelda: Breath of the Wild has helped the console become one of Nintendo’s hottest-selling devices to-date.”

“Nintendo was also able to cash in on nostalgia with the release of the NES Classic, a replica of its original Nintendo Entertainment System that came pre-loaded with retro games. In just five months, the device sold more than 2 million units and was far more popular than Nintendo expected it to be.”

Convinced? Well then, it is time to buy some stock.

The author went on mention the SNES Classic. The video game company is making easy money off mini-console remakes. On the downside for Switch owners, it means the likelihood of ever getting a traditional Virtual Console is fading away. If the House of Mario can make cash off the old games by putting them on extra hardware, then why give Switch owners the luxury of downloading their beloved favorites?

But the point is, Nintendo found a strategy that works with the NES Classic. So expect them not only to release a SNES Classic this fall, but a Nintendo 64 Classic sometime next year.

As for any worries the pattern will break, the MSN author does not believe so. He closes with high optimism.

“Every technical trader will use different indicators and thresholds, but the key is to recognize individual patterns and trends. We aren’t seeing any flagrant bullish signals on these charts right now, but NTDOY has displayed several strong patterns over the last six months, which means there’s nothing blatantly stopping it from moving higher.”

Clearly, he never tried out the awful Switch Online App.

In seriousness though, not even a crummy smartphone app and poor online infrastructure can derail the Switch or Nintendo at this point.

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