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3 Reasons Why I Bought More Nintendo Stock in 2025
NTDOYNintendo(NTDOY) The Motley Fool·2025-02-11 19:22

Core Viewpoint - Nintendo is positioned for significant growth with three major catalysts expected to impact its performance over the next 14 months, despite recent financial challenges [1][2]. Group 1: Movie Collaborations - The release of "The Super Mario Bros. Movie" in fiscal 2024 has positively influenced Nintendo's stock, which has risen 23% in 2025, despite a decline in revenue for three of the last four years [3][4]. - The film achieved over 1billioninworldwideticketsales,rankingasoneofthetoptwomoviesof2023,alongside"Barbie"[4].−Asequel,"TheSuperMarioBros.2,"issettoreleaseinAprilnextyear,whichisexpectedtofurtherenhancemerchandisingandlicensingopportunitiesforNintendo[5].Group2:ThemeParkExpansions−NintendohaspartneredwithComcasttodevelopSuperMario−themedareasinUniversalStudiosparks,withsignificantexpansionsalreadyinJapanandCalifornia,andalargerprojectopeningsooninFlorida[7][8].−ThenewEpicUniversethemeparkinFloridawillfeaturemultipleattractions,expectedtodrivehighfoottrafficandrevenuethroughlicensingandmerchandisesales[9][10].Group3:GamingConsoleDevelopments−NintendohasnotreleasedanewconsolesincetheSwitchin2017,butplanstolaunchtheNintendoSwitch2laterthisyear,whichisanticipatedtorevitalizesalesandprofitability[11][13].−Thecyclicalnatureofgamingconsolessuggeststhatinitialhardwaresaleswillbefollowedbyapeakinrevenuefromsoftwaretitles,indicatingapositivefinancialoutlookforNintendointhecomingyears[14].−Nintendomaintainsastrongfinancialpositionwithamarketcapof1 billion in worldwide ticket sales, ranking as one of the top two movies of 2023, alongside "Barbie" [4]. - A sequel, "The Super Mario Bros. 2," is set to release in April next year, which is expected to further enhance merchandising and licensing opportunities for Nintendo [5]. Group 2: Theme Park Expansions - Nintendo has partnered with Comcast to develop Super Mario-themed areas in Universal Studios parks, with significant expansions already in Japan and California, and a larger project opening soon in Florida [7][8]. - The new Epic Universe theme park in Florida will feature multiple attractions, expected to drive high foot traffic and revenue through licensing and merchandise sales [9][10]. Group 3: Gaming Console Developments - Nintendo has not released a new console since the Switch in 2017, but plans to launch the Nintendo Switch 2 later this year, which is anticipated to revitalize sales and profitability [11][13]. - The cyclical nature of gaming consoles suggests that initial hardware sales will be followed by a peak in revenue from software titles, indicating a positive financial outlook for Nintendo in the coming years [14]. - Nintendo maintains a strong financial position with a market cap of 84 billion and an enterprise value of $70 billion, suggesting potential for increased dividends and stock performance as profitability improves [15].