Nintendo Stock Outlook: Profit Forecast And Switch Sales

Nintendoâ€s stock has risen due to a new operating profit forecast for the year ending March 2025, which shows a 10% decrease. The company expects its 2025 operating profit to reach 360 billion yen or $2.36 billion.

The Kyoto-based gaming giant sold 4.7 million Switch consoles this fiscal year, down from 6.8 million units shipped last year. In the past, the stock exchange often saw applause during Nintendoâ€s presentations. However, the companyâ€s significant decline led investors to act and focus on its policies as new innovations took over the market.

Sales Forecast Revised: 12.5 Million Units From Previous Level

Moreover, Nintendo broke the news that it has cut down on its sales targets for the Switch hardware during the year by about 7% to 12.5 million units from the previous level. After the Nintendo DS, the Switch has now become the second top-selling Nintendo console, and thus the decrease in its sales has started to be felt.

Despite the fact that the market is experiencing a decline, Nintendo still managed to keep the game console afloat by introducing its well-known characters to attract customers. However, despite the Japanese companyâ€s projections of low sales forecast, investors might still be more demanding as they want to see what is the next move of the firm.

The Impact of Recent Releases on Nintendo Shares

In the previous fiscal year, Nintendoâ€s Switch sales got the desired boost due to the successful games – “The Super Mario Bros. Movieâ€� and “The Legend of Zelda: Tears of the Kingdom.â€� These releases not only showed further that Nintendoâ€s characters are still very popular, but also lessened the impact of their slow hardware sales.

Nonetheless, Nintendoâ€s share price suggests that investors worry about the companyâ€s future growth strategy. Consequently, the management may need to consider a new hardware platform or other innovations to keep its competitive edge.

Nintendo Stock Chart Analysis

Nintendo 15 Minute chart

From a 15-minute chart for Nintendo, we can see the technical picture of Nintendo Co. Ltd. The stock is currently trading around 17.2 THB and has been recently moving between a range of 17.4 to 18.4.

The RSI (Relative Strength Index) is around 34.99, which is not very far from the oversold territory. In our view, it means selling has been strong, but not excessively. Should the RSI rise above this level, that would indicate that buyers are getting involved. This is a possible scenario which may result in a short-term price reversal or a bounce.

Upon deeper analysis, it clearly shows that the resistance area is currently in the 17.7 to 18.0 zone, while the support zone is about 17.2. The price grew but got trapped near 18.

A move below 17.2 will further pull down the stock price. However, we should also look for a surge in trading volumes or a bullish RSI of above 50 points to consider a trend reversal as a bigger confirmation.

Now is the time for you to take action and get ready for the next move!

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