Nintendo Is Still Winning The Game With Its Switch 2 (OTCMKTS:NTDOY)

Summary

• Nintendo opened the year with 131% sales growth with maintained profitability, driven mainly by Switch 2.
• Tariffs, inflation, and pricing criticisms are some challenges surrounding the company, but its strong brand recognition remains unfazed.
• Product compatibility and exclusivity ensure that gamers are still locked in the Nintendo gaming ecosystem.
• Its robust balance sheet, characterized by high cash reserves and prudent inventory management, can protect it from macroeconomic headwinds.
• Nintendo is still cheap today with an 8% upside, even if I made my estimation more conservative.

In the past two quarters, we have been worried about the impact of new tariffs on Nintendo Co., Ltd. (OTCPK:NTDOY) (OTCPK:NTDOF) (NEOE:NTDO:CA) and the launch of Nintendo Switch 2. Yet, its strong brand

Analyst’s Disclosure:I/we have a beneficial long position in the shares of NTDOY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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