Nintendo's stock closed today at a nearly 10 year high, surpassing its performance during the Pokemon Go craze. The popular video game company's shares reached a closing price of 31,880 yen ($284.95 in US dollars), its highest price since 2008. Nintendo's price has surged in recent months due to the strong initial performance of the Nintendo Switch, the new hybrid handheld/home console.
Last summer, Nintendo's stock spiked after Pokemon Go became a global phenomenon and many investors assumed it would result in increased earnings for the company. However, the price dropped after Nintendo informed investors that it only owned a portion of the app and that it didn't anticipate any change in its projected revenue.
Still, Pokemon Go's performance signalled that Nintendo was ready to enter into the mobile gaming market, a new and profitable area barely touched by traditional video game manufacturers. Nintendo's plans for more mobile games (which allegedly includes tie-ins with the Zelda, Animal Crossing, and Pokemon franchises) and the strong performance of the Nintendo Switch have investors excited, which resulted in the company's stock reaching a new milestone.
Today's stock surge means that Nintendo is now one of Japan's 20 largest companies, with a market cap of $39 billion. What's really crazy is that Nintendo's stock price could continue to increase, as several analysts have marked Nintendo's stock as a "buy" because of the Nintendo Switch's strong expected performance.