ToplineNintendo argued consumers “received exactly what they bargained and paid for” after raising the price for its Switch 2 console, asking a court to dismiss a class-action lawsuit claiming the video game giant should issue tariff rebates, as only a handful of companies have said they would issue refunds.
The video game giant previously blamed “market conditions” for price hikes.
Copyright 2025 The Associated Press. All rights reserved
Key FactsNintendo, in a motion filed late Monday, argued consumers who sued the firm to receive tariff refunds are “not entitled” to a rebate and claimed the money they paid for Nintendo products “represents the purchase price of the goods they wanted and received.”
Consumers filed a class-action lawsuit against Nintendo in April, claiming the company—which sued the Trump administration to recoup tariff payments—raised its prices because of the tariffs and would later receive refunds for those levies, effectively allowing the company to collect the costs twice.
Nintendo’s attorneys criticized the lawsuit’s argument as “meritless,” arguing consumers failed to dispute Nintendo’s price adjustments as unlawful or that the company misled customers.
In its motion, Nintendo said it made the “difficult decision” to raise prices for some of its products “in response to market conditions,” which the firm said included tariffs as well as the cost of memory, labor and shipping.
Shares of Nintendo dropped 4% in Tokyo-based trading on Tuesday.
crucial quote“Nintendo or one of its retailers set a price for each product, and consumers decided whether that price was worth paying,” Nintendo’s attorneys wrote. “Those who bought Nintendo’s products received exactly what they bargained and paid for: a console, game and/or accessory at a price to which both parties agreed.”
what companies will issue tariff refunds?Only a few have publicly stated they would pass on tariff refunds to consumers: Costco CEO Ron Vachris said in March the company would turn tariff refunds into “lower prices and better values.” FedEx said it would issue refunds to shippers and consumers who originally paid the tariff charges. UPS similarly said it would reimburse customers for tariff-related charges.
tangentFord, which has said it would not pass on tariff refunds, faces a proposed class-action lawsuit in Michigan from consumers who claim they should receive reimbursement. Ford previously said it expected a one-time $1.3 billion refund.
key backgroundNintendo announced a price hike for its then-upcoming Switch 2 console one day after President Donald Trump announced sweeping tariffs against more than 180 countries last year. The video game firm launched global price hikes again earlier this year, citing “market conditions,” following similar moves by Sony and Microsoft amid a broader chip supply crunch. The Trump administration has said it would refund $166 billion to some 300,000 different importers after the Supreme Court ruled Trump’s levies were unlawful, leading the way for many firms, like Nintendo, to sue for reimbursement. Some economists have warned that tariff rebates would only benefit U.S. importers. Among those making that argument is UBS chief economist Paul Donovan, who wrote earlier this year it “seems unlikely anyone will rush to lower prices to their consumers.”
further readingForbesNintendo’s Switch 2 Gets A $50 Price Hike—Company Blames ‘Market Conditions’By Siladitya RayForbesNintendo Surprises With Switch 2 Price Hike—As Trump Imposes Tariffs On China And VietnamBy Conor Murray
ForbesTariff Refunds Start Today—But Average Consumers Won’t BenefitBy Ty Roush
Splatoon is among Nintendo’s most ingenious inventions of the last decade: a series of shooting games whose paint-splattered turf war nature means being bad at shooting is just as valuable as – if not more so than – being good. It is also blessed with an abundance of personality, with vibrant characters, a richly imagined world, and a hipness that the competition can only dream of achieving. Unfortunately, Splatoon Raiders makes it difficult to remember all of this.
The first spinoff in the ink-soaked franchise, Splatoon Raiders is advertised as a single player-focused entry in this primarily multiplayer series. While this is true enough – one can play through the entire game solo just fine – Raiders is clearly best enjoyed cooperatively with up to three others. Players start each session on a hideout ship where they can upgrade their equipment and tweak their play style before heading out on bite-sized repeatable missions, and this structure is tailor-made for teaming up with friends or helping out strangers (the game lets you do either), as each person works towards creating their ultimate squid-kid avatar of chaos.
Playing Splatoon Raiders solo feels like a lesser experience for this reason. Its levels are straightforwardly constructed to keep groups together. There is little of the puzzly rush of finding hidden depths with creative use of your tools. Instead, the fun is in putting together your kit. Splatoon’s weapons have always been goofy and playfully designed, but even better is learning how this new entry complements them with a suite of augmentable gadgets. As your options accrete and the game escalates in challenge, Raiders comes to life.
Gadgets bring the game to life … Splatoon Raiders. Photograph: NintendoSome may not get that far. Splatoon Raiders takes a long time to make it clear how completely the experience can change with the right kit, and while it offers a decent variety of challenges to tackle, players are meant to replay them. The minimal story, in which you are an unnamed mechanic stranded on a mysterious archipelago with the band Deep Cut (returning from Splatoon 3), is not terribly compelling. Which is surprising for a series with a history of casually revealing outrageous new details about its post-climate apocalypse world and its human-cephalopod inhabitants.
Splatoon is Nintendo at its most offbeat, venturing forth in a direction few other game studios travel. And, according to sales, audiences outside of the company’s native Japan seem to struggle with how to receive it. In this context, Splatoon Raiders feels like a concession: Nintendo taking aside one of its rangier, peculiar creations and asking it to be a bit more normal. This is the biggest surprise about Splatoon Raiders: it is pedestrian. If you’ve played one of dozens of modern cooperative action games, you’ve played this. You have upgraded your gear and compared weapon stats and divined synergies between abilities in order to throw your character into the meat grinder over and over again, watching overwhelming hordes eventually become trivial as your stats improve, your arsenal more varied. There is only so much that Splatoon’s ink-fuelled weaponry and charming DIY design sensibilities can do to elevate this experience. Like its archipelago setting, Splatoon Raiders is far removed from what makes the main series so charming, and what’s left here feels a bit too much like watching paint dry.
Nintendo Co. (OTCMKTS:NTDOY – Get Free Report) has received a consensus recommendation of “Hold” from the eight research firms that are presently covering the company, Marketbeat Ratings reports. One analyst has rated the stock with a sell rating, four have given a hold rating, two have given a buy rating and one has issued a strong buy rating on the company.
Several research analysts have recently weighed in on NTDOY shares. TD Cowen reissued a “buy” rating on shares of Nintendo in a report on Tuesday, April 14th. Benchmark reaffirmed a “buy” rating on shares of Nintendo in a research report on Monday, May 11th.
View Our Latest Stock Analysis on Nintendo
Nintendo Stock Performance OTCMKTS NTDOY opened at $10.83 on Friday. Nintendo has a one year low of $10.18 and a one year high of $24.92. The stock has a 50-day moving average of $11.07 and a 200 day moving average of $13.36. The company has a market capitalization of $55.76 billion, a price-to-earnings ratio of 18.05 and a beta of 0.39.
Nintendo (OTCMKTS:NTDOY – Get Free Report) last posted its earnings results on Friday, May 8th. The company reported $0.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.09 by $0.01. The business had revenue of $2.60 billion for the quarter, compared to analysts’ expectations of $2.63 billion. Nintendo had a net margin of 18.33% and a return on equity of 13.74%. Nintendo has set its FY 2026 guidance at 0.429-0.429 EPS. On average, equities analysts predict that Nintendo will post 0.53 earnings per share for the current fiscal year.
Hedge Funds Weigh In On Nintendo Institutional investors and hedge funds have recently modified their holdings of the company. Dorsey Wright & Associates purchased a new stake in Nintendo during the third quarter valued at $1,562,000. Confluence Investment Management LLC grew its stake in shares of Nintendo by 4.0% during the 4th quarter. Confluence Investment Management LLC now owns 67,829 shares of the company’s stock valued at $1,144,000 after purchasing an additional 2,628 shares during the period. Thurston Springer Miller Herd & Titak Inc. grew its stake in shares of Nintendo by 322.5% during the 4th quarter. Thurston Springer Miller Herd & Titak Inc. now owns 4,225 shares of the company’s stock valued at $71,000 after purchasing an additional 3,225 shares during the period. O Brien Greene & Co. Inc increased its position in shares of Nintendo by 2.1% during the 4th quarter. O Brien Greene & Co. Inc now owns 38,050 shares of the company’s stock valued at $642,000 after purchasing an additional 800 shares during the last quarter. Finally, PNC Financial Services Group Inc. lifted its stake in shares of Nintendo by 13.6% in the 4th quarter. PNC Financial Services Group Inc. now owns 8,964 shares of the company’s stock worth $151,000 after purchasing an additional 1,073 shares during the period. 0.02% of the stock is currently owned by hedge funds and other institutional investors.
Nintendo Company Profile (Get Free Report)
Nintendo Co, Ltd., headquartered in Kyoto, Japan, is a global entertainment company best known for designing, manufacturing and marketing video game hardware and software. Founded in 1889 as a playing-card company, Nintendo transitioned into electronic entertainment in the latter half of the 20th century and has since become one of the most recognizable names in interactive entertainment. The company serves markets worldwide, with major operations and customer bases in Japan, North America and Europe, and it maintains a presence through regional subsidiaries, distribution partners and digital storefronts.
Nintendo’s business spans console and handheld hardware, first-party software titles, digital services and licensing.
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Nintendo (TYO: 7974) is preparing to deliver the first of its two yearly dividends today, June 29, when shareholders are going to receive a dramatically larger payout than six months ago.
Notably, the company announced a payment of JP¥177 ($1.09) per share, meaning investors holding 100 Nintendo shares will receive JP¥17,700 ($109) in semiannual dividends, or P¥35,400 ($218) this year if the payout remains unchanged.
As such, today’s payout represents a 321.43% increase from Nintendo’s most recent dividend of JP¥42 ($0.26) per share paid in December 2025, according to DivvyDiary data.
Nintendo dividends calendar. Source: DivvyDiary To be eligible for the payout, shareholders must own Nintendo stock as of the March 30 ex-dividend date.
Note that for investors outside Japan, the company’s American Depositary Receipts (ADRs) trade on the U.S. over-the-counter (OTC) markets under the ticker NTDOY.
Nintendo dividend history The upcoming Nintendo stock dividend thus marks a sharp rebound from the company’s latest payment cycle.
Namely, in 2025, Nintendo paid a total annual dividend of JP¥127 ($0.78) per share, consisting of a JP¥85 ($0.52) payment in June and a significantly smaller JP¥42 ($0.26) payment in December, which represented a 50.59% decline.
Now, the June 29 JP¥177 ($1.09) dividend not only exceeds the December payout by more than four times but also stands JP¥92 ($0.57) higher than the company’s larger June 2025 distribution of JP¥85 ($0.52).
The increase comes as the gaming giant’s stock is down about 35% year-to-date. As a result, the substantial improvement in shareholder returns is seen by many as potentially reflecting stronger earnings expectations, capital allocation decisions, or improved business performance heading into fiscal 2026.
What’s more, the Japanese company also raised employee salaries by 10% just two days prior, and its shares were up roughly 5% on the daily chart at the time of writing, which has boosted confidence in management’s vision and the firm’s financial position.
Featured image via Shutterstock
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Nintendo (TYO: 7974) is preparing to deliver the first of its two yearly dividends today, June 29, when shareholders are going to receive a dramatically larger payout than six months ago.
Notably, the company announced a payment of JP¥177 ($1.09) per share, meaning investors holding 100 Nintendo shares will receive JP¥17,700 ($109) in semiannual dividends, or P¥35,400 ($218) this year if the payout remains unchanged.
As such, today’s payout represents a 321.43% increase from Nintendo’s most recent dividend of JP¥42 ($0.26) per share paid in December 2025, according to DivvyDiary data.
Nintendo dividends calendar. Source: DivvyDiary To be eligible for the payout, shareholders must own Nintendo stock as of the March 30 ex-dividend date.
Note that for investors outside Japan, the company’s American Depositary Receipts (ADRs) trade on the U.S. over-the-counter (OTC) markets under the ticker NTDOY.
Nintendo dividend history The upcoming Nintendo stock dividend thus marks a sharp rebound from the company’s latest payment cycle.
Namely, in 2025, Nintendo paid a total annual dividend of JP¥127 ($0.78) per share, consisting of a JP¥85 ($0.52) payment in June and a significantly smaller JP¥42 ($0.26) payment in December, which represented a 50.59% decline.
Now, the June 29 JP¥177 ($1.09) dividend not only exceeds the December payout by more than four times but also stands JP¥92 ($0.57) higher than the company’s larger June 2025 distribution of JP¥85 ($0.52).
The increase comes as the gaming giant’s stock is down about 35% year-to-date. As a result, the substantial improvement in shareholder returns is seen by many as potentially reflecting stronger earnings expectations, capital allocation decisions, or improved business performance heading into fiscal 2026.
What’s more, the Japanese company also raised employee salaries by 10% just two days prior, and its shares were up roughly 5% on the daily chart at the time of writing, which has boosted confidence in management’s vision and the firm’s financial position.
Featured image via Shutterstock
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SummaryNintendo Co., Ltd. is fundamentally strong, with robust demand and a resilient customer base despite a 52% share price decline over the past year.Switch 2's launch drove FY 2026 net sales up 98.6% YoY to 2.31T JPY, with 19.86M units sold and strong global diversification.Valuation is compelling: NTDOY trades at 0.84x sales and 4.55x P/E, both below historical averages, indicating significant upside.I reiterate my buy rating, citing early bullish divergence signals, a strategic ecosystem, and a robust balance sheet supporting continued innovation. Czgur/iStock Editorial via Getty Images
In almost a year, the value of Nintendo Co., Ltd. (NTDOY) has already dropped by -52%. And even if it had already landed at $13.19 in my previous coverage, market caution
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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.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
SummaryCompaniesNintendo says component prices, tariffs adding to costsHigher costs reflected in Switch 2 price hike decisionBoth companies' shares have slid in recent monthsSony to buy back up to $3.2 billion of sharesSony sees high memory prices continuing next yearTOKYO, May 8 (Reuters) - (This May 8 story has been corrected to fix the name of the organisation to Morningstar, not HSBC, in paragraph 5)
Nintendo (7974.T), opens new tab and Sony (6758.T), opens new tab both flagged the impact from surging memory prices on their games businesses on Friday, as the artificial intelligence boom constrains chip supply and deepens disruptions across the tech sector.
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Memory chip prices doubled in the first quarter alone from the previous quarter and are forecast to climb up to 63% in the current quarter due to AI data centre demand that has impacted supply for smartphones, laptops and automobiles.
While top producers Samsung (005930.KS), opens new tab, SK Hynix (000660.KS), opens new tab and Micron (MU.O), opens new tab have pledged to boost output with billions of dollars of investment, it takes at least a year for a new production line to come online, experts say.
"Super Mario" maker Nintendo said that higher component costs, particularly memory, and the impact of tariffs is expected to add roughly 100 billion yen ($638 million) to costs in the current financial year.
"The very fact that Nintendo felt compelled to act (price increase) suggests the rise in memory costs has become severe enough that it could no longer be absorbed internally - and, crucially, that there is little prospect of those cost pressures easing in the near term," Morningstar analyst Kazunori Ito said.
"This decision likely reflects a sober assessment that waiting for market conditions to improve is not a viable option."
President Shuntaro Furukawa said the higher component costs, along with factors including exchange rates, were reflected in Nintendo's decision to hike prices of its Switch 2.
The price of a Japanese language Switch 2 Japan model will go up by 10,000 yen to 59,980 yen, with the gaming device in the U.S. to cost $50 more at $499.99.
With the price hikes, profitability will be roughly unchanged from last financial year, Furukawa told an earnings briefing.
Sony announced in March it would increase prices of the PS5, with the standard version of its gaming device jumping $100 to $649.99 in the U.S.
NINTENDO USERS SEEN AS PARTICULARLY PRICE SENSITIVEFor Nintendo the hikes have risks as the Switch 2 is early in its lifecycle and its casual user base is particularly price sensitive, said Serkan Toto, founder of the Kantan Games consultancy.
A Sony logo appears in this illustration taken August 25, 2025. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab
"Nintendo is now under more pressure than ever to get more first-party blockbusters out this fiscal year" to boost demand for the system, Toto said.
The firm's games pipeline is seen as thin, although it has scored a recent hit with "Pokemon Pokopia" and upcoming titles include "Star Fox".
Nintendo also hiked prices of its older Switch and online gaming services and said its playing cards will move from a listed price to an open price set by retailers.
The company expects to sell 16.5 million Switch 2 units this year, compared to 19.9 million units last year, and 60 million software units.
Sony and Nintendo's shares have been under pressure in recent months as investors fret about the impact of disruption to supply chains from the AI boom and Iran war on electronic manufacturers' margins.
Sony, which plans to spend up to 500 billion yen buying back shares, said it sees lower sales but higher profits at its gaming business this financial year.
Sony has secured memory supply for this financial year but prices are expected to continue to be high next year, CEO Hiroki Totoki told an earnings briefing.
The company is looking at ways to reduce costs outside of memory, he said.
PS5 hardware sales are based on the amount of memory Sony can secure at "reasonable prices", with hardware profitability expected to be similar to a year earlier.
With the PS5 in its sixth year on the market, the profit forecast incorporates investment in Sony's next-generation platform.
Sony is expected to receive a major boost from the launch of Take-Two Interactive's (TTWO.O), opens new tab delayed "Grand Theft Auto VI", which is scheduled for release in November.
"Sony's bottom line stands to benefit significantly from the high-margin software sales and ecosystem engagement this launch should trigger," Amir Anvarzadeh of Asymmetric Advisors wrote in a note.
($1 = 156.7000 yen)
Reporting by Sam Nussey; Additional reporting Kritika Lamba and Anton Bridge; Editing by Elaine Hardcastle
Our Standards: The Thomson Reuters Trust Principles., opens new tab
1. Cloudflare Sinks on AI Reform Cloudflare (NET +3.19%) fell over 18% ahead of the opening bell as investors see the company belatedly playing catch-up on AI, with management noting it's "the biggest tailwind we've ever seen," along with quarterly results showing a 4.67% fall in gross profit margins from the prior-year period.
"Cloudflare's usage of AI has increased by more than 600% in the last three months alone": 1,100 staff are being cut, with an email sent to staff saying management "have to be intentional in how we architect our company for the agentic AI era," with the job cuts representing 20% of the current workforce. News overshadows strong set of results: Despite the fall in gross margin, revenue rose by 34% versus the same period last year, with the outlook for full-year fiscal 2026 revenue and earnings raised. The stock is outperforming the S&P 500 by 285% since the November 2022 Stock Advisor recommendation by Team Hidden Gems. 2. SA Results From HUBS, MNST, RKLB, and NTDOY HubSpot (HUBS 2.39%) slumped around 20% in pre-market trading as results provided some concern over future revenue growth rates and broader valuation concerns, despite profitability for the quarter improving year over year (YoY) for the recommendation by Team HG. Monster Beverage (MNST +0.87%) popped over 6% in pre-market trading thanks to the Team RB rec reporting record quarterly sales, helped out by international growth and energy drink demand. Nintendo (NTDOY +0.27%) disappointed investors as results forecasted a decline in sales for its flagship console, the Switch 2, as memory chip shortages bite at the Team Rule Breakers recommendation. Rocket Lab (RKLB +7.41%) jumped over 6% ahead of the opening bell as results beat its own financial forecasts, with the Team Hidden Gems rec signing multiple new launch contracts. Fool contributing analyst Lou Whiteman said "there is nothing in the report to suggest Rocket Lab isn't on its way toward growing into the company the market expects in the years to come." 3. Record AI Capex Cycle Drains Tech Cash New data from Visible Alpha shows the tech sector is facing the biggest cash strain in over a decade, as record-breaking AI capex spend weighs on free cash flow, even with higher spending in the pipeline.
Full-year free cash flow set to hit lowest level since 2014: The combined free cash flow of Amazon (AMZN +0.32%), Alphabet (GOOG 1.23%), Microsoft (MSFT 2.51%), and Meta (META 0.71%) is due to fall to around $4 billion in Q3, a stark drop from the $45 billion average for each quarter since the pandemic. AI buildout seen as a once-in-a-lifetime opportunity: Amazon is expected to spend more cash than it generates this year, with other tech stocks in a similar position. Investors will need to weigh up whether such spending can result in higher returns down the road. 4. What to Watch on Friday Enbridge (ENB +0.69%) reports before the market opens, aiming to build on the record results posted last quarter. The results should provide an update on major pending projects, including the Mainline Optimization Phase 1 and 2. Brookfield Asset Management (BAM +1.29%) rose 1.5% ahead of the opening bell as results showed an 11% YoY jump in fee-related earnings, building on the record last quarter. The Dividend Investor rec boasts a three-year dividend growth rate of around 15%. 5. Your Take Do you invest in healthcare and biotech stocks? If so, what gives you conviction – the science, the management team, the commercial opportunity, or something else?
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This image and article was created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Brookfield Asset Management, Cloudflare, Enbridge, HubSpot, Meta Platforms, Microsoft, Monster Beverage, Nintendo, and Rocket Lab. The Motley Fool has a disclosure policy.
Nintendo announced on Friday it would raise the price of its Switch 2 consoles to $500 starting Sept. 1. The price increase of $50 is the first time the Switch 2 has gone up in cost since its launch last June.
"This is in response to various changes in market conditions, which are expected to extend over the medium to long term," the company said in a press release. "We understand that pricing changes can be challenging for customers and deeply appreciate the continued enthusiasm of our fans for Nintendo products and experiences."
To help soften the blow of the price jump, Nintendo revealed on Monday a new Switch 2: Choose Your Game Bundle. These new bundles will cost $500 and will come with a digital code to download one of three Nintendo games: Mario Kart World, Donkey Kong Bananza and Pokemon Pokopia. Nintendo says the bundles will be available at participating retailers this summer but only for a limited time.
When the Switch 2 launched in June last year, there was a concern that Nintendo would be forced to raise its new console's previously announced price due to the tariffs imposed by President Donald Trump in April 2025. Like many tech devices, Switch 2 components come from production plants in Vietnam and China, two countries hit hard by the tariffs, but Nintendo was able to keep the console's price at $450 for the base unit.
Even though the Switch 2 didn't jump in price due to tariffs, the original Switch and accessories did see a price bump. The original Switch, Switch OLED and Switch Lite increased by 15% while accessories saw a jump of $5 or $10.
Gaming is now a luxury hobby The core reason for the Switch 2 price increase is the same for almost all of tech right now: the global memory shortage, aka "RAMageddon." This problem began at the end of 2025, as a spike in demand for generative AI tools drove a surge in the need for computers to power AI data centers. This drove up the cost of RAM, and, in turn, the prices of devices that use it also had to go up to accommodate it.
Nintendo isn't the only one feeling the pain from this memory shortage. Sony increased the cost of the PS5 Pro, rising from $750 to $900. Microsoft made similar adjustments to its Xbox Series X and S consoles. Valve had to delay the release of its Steam Machine home PC console due to the shortage, and it's still unclear how much it will cost.
In late March and early April, RAM prices did finally slow, and it appears the market could be returning to normal pricing. However, that may take some time. RAM sticks of 16GB, 32GB and 64GB of DDR5 are still several times higher than they were back in 2024.
RAM isn't the only computer component that saw price spikes. Prices for solid-state drives have, in many cases, doubled, for the same reason as RAM. The price of gaming hardware could continue to rise as demand for those components grows.
Nintendo’s annual profit surged 52% in the last fiscal year, lifted by solid sales of its Switch 2 machines and software, the company announced Friday.
The Japanese video-game company behind the Super Mario and Pokemon franchises also announced it was raising prices, citing challenging business conditions.
It recorded a 424 billion yen ($2.7 billion) net profit for the fiscal year that ended in March, up from nearly 279 billion yen the year before.
The Japanese video-game company behind the Super Mario and Pokemon franchises announced it was raising prices, citing challenging business conditions. AFP via Getty Images Annual sales rose 99% to 2.3 trillion yen ($15 billion) from 1.2 trillion yen a year earlier, as demand for Switch 2 held up, although sales for the first-generation Switch declined.
Nintendo said it was raising the Switch 2 price in Japan to 59,980 yen ($382), effective May 25, from 49,980 yen ($318), “in light of changes in market conditions, and after considering the global business outlook.”
In the US, the price will rise to $499.99 in September, from $449.99.
Nintendo, which is based in the ancient Japanese capital of Kyoto, did not go into details. But all major Japanese exporters are having to cope with President Trump’s tariff hikes and other higher costs that have been worsened by the war in Iran.
Nintendo Co., which did not break down quarterly results, expects an 11% decline in sales for the fiscal year through March 2027, to 2.1 trillion yen ($13 billion). The projection takes into account the planned price hikes.
In the US, the price will rise by $50 to $499.99 in September AFP via Getty Images On the plus side, Nintendo’s film “The Super Mario Galaxy Movie” has grossed more than $800 million since its release a month ago.
Among its recent successful game software offerings were “Mario Kart World” and “Donkey Kong Bananza.”
The game “Tomodachi Life: Living the Dream” has sold more than 3.8 million units since going on sale two weeks ago.
Nintendo expects to sell 16.5 million Switch 2 machines in the fiscal year through March 2027, down nearly 17% from 19.86 million in the last fiscal year. It also forecast that Switch 2 software sales will continue to grow, at 60 million, up 23% from 48.7.
Nintendo expects to sell 16.5 million Switch 2 machines in the fiscal year through March 2027, down nearly 17%. AFP via Getty Images It’s common for game machines to sell briskly right after they are launched and then see sales decline. Game software tends to continue growing. The Switch is a hybrid game machine, functioning both as a home console connected to a display, or as a portable handheld.
Nintendo promised more software titles for the Switch 2 this year, including from other creators, including the latest “Final Fantasy.”
Nintendo’s stock price jumped 3.6% after earnings were announced.
If you’ve been debating whether or not to pick up a Nintendo Switch 2 then you’ll want to act soon.
Nintendo says it is raising the Switch 2’s price from $450 to $500 in the U.S. due to “changes in market conditions,” most notably the global shortage of random access memory (RAM). The change is set to go into effect on September 1.
Similar price increases will simultaneously occur in Canada ($630 CAD to $680 CAD) and Europe (€470 to €500). In Japan, the system’s MSRP (manufacturer’s suggested retail price) will rise a bit earlier, going from ¥49,980 to ¥59,980 on May 25.
Nintendo blames the widespread change on the fact that market condition changes are likely to have an impact “over the medium to long term.” Sony pointed to similar factors in March when it raised the PlayStation 5’s price by up to $150.
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“We sincerely apologize for the impact these price revisions may have on our customers and other stakeholders and we deeply appreciate your understanding,” Nintendo stated in its announcement.
The news came alongside Nintendo’s earnings report for fiscal 2026, which ended on March 31. The company reported 19.86 million units sold for the fiscal year—the Switch 2 arrived about one quarter in on June 5, 2025. In contrast, it predicts the sale of 16.5 million units for all of fiscal 2027.
Nintendo points to both the price increase and “strong launch-year sales” as reasons for the expected decline.
In Q1 2026, Polen International Growth Portfolio returned -14.4% (net of fees) compared to -0.7% for the Index. We initiated new positions in TSMC, Rheinmetall, Saab, Mitsubishi Heavy Industries, AstraZeneca, AIA Group, Siemens Energy, Samsung Electronics, and Keyence. We sold our holdings in Nintendo, MakeMyTrip, Adidas, Globant, Amadeus IT Group, Monday.com, ICON plc, and HDFC Bank.
SummaryCompaniesNintendo shares fall 7%Market hoping for blockbuster games to boost momentumNintendo to release AAA this year, analyst thinksSony shares rise 10%Announced new Japan image sensor joint venture with TSMCTOKYO, May 11 (Reuters) - Nintendo's (7974.T), opens new tab shares fell 7% in Tokyo on Monday after the company hiked Switch 2 prices and as the market frets over a lack of high-profile games to build momentum.
Nintendo posted robust hardware sales for the financial year ended March but, while the company is known for its conservative forecasts, its outlook for this year underwhelmed the market.
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The Kyoto-based firm extended the life of the original Switch with games from franchises such as "The Legend of Zelda" and, while it has scored hits such as "Pokemon Pokopia", it is seen as lacking potential blockbusters.
"The year-on-year decline in game shipment guidance risks signaling that Nintendo lacks confidence in its pipeline," Morningstar analyst Kazunori Ito wrote in a note.
"However, as user engagement typically accelerates in the second year of a console cycle, we view this as too pessimistic," he wrote.
Nintendo also said it would raise prices of its Switch 2, with the Japanese language Switch 2 Japan model to go up by 10,000 yen ($63.73) to 59,980 yen from May 25 and prices in markets such as the U.S. to rise from September 1.
The company has an audience among casual gamers who are seen as particularly sensitive to price hikes, which come as electronics makers grapple with a memory chip price surge.
A person holds a Nintendo Switch 2 game console's box as Nintendo starts selling the new consoles globally, at an electronics store in Tokyo, Japan June 5, 2025. REUTERS/Issei Kato Purchase Licensing Rights, opens new tab
The second year "is crucial and our non-consensus view is that it will release a Mario AAA game this year," Jefferies analyst Atul Goyal wrote in a note.
"The... guidance bar is low by design — Nintendo has beaten initial (operating profit) guidance in each of the past four fiscal years," he wrote.
Unlike more diversified peer Sony (6758.T), opens new tab, Nintendo remains highly dependent on its core gaming business even as its characters and intellectual property prove popular in movies and at theme parks.
With the PlayStation 5 having spent longer on the market, "Sony is in a much better position to pass higher costs of memory chips to consumers," Amir Anvarzadeh of Asymmetric Advisors wrote in a note.
Sony, whose shares were up 10% in Tokyo on Monday, forecast lower sales but higher profit at its gaming business. The company also said it was planning a new joint venture to develop and manufacture image sensors in Japan with TSMC (2330.TW), opens new tab as it seeks to control costs.
"These results were at least validating of the thesis that Sony can protect group profits by scaling back PS5 shipments," Bernstein analyst David Dai wrote in a note.
($1 = 156.9100 yen)
Reporting by Sam Nussey; Editing by Sam Holmes
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Nintendo shares plunged on Monday after the gaming giant warned that sales of its flagship Switch 2 console would fall this fiscal year and it announced a price hike for the device due to rising memory costs.
Shares of Nintendo closed 8.4% lower in Tokyo, Japan to 7,020 yen (US$44.64), the lowest since August 2024. The stock has fallen 34% this year.
On Friday, Nintendo announced price hikes for its Switch 2 console in markets across the world. An unprecedented surge in the price of memory chips, driven by the AI infrastructure boom, has increased the cost of producing the device.
Nintendo said that it forecasts 16.5 million unit sales of the Switch 2 in the current fiscal year, which ends in March 2027, down from 19.86 million since its launch last June. The predicted fall in sales of the console — which is less than a year old — is raising concerns among investors.
"Nintendo is predicting Switch 2 hardware sales to go down this fiscal year — instead of going up as it usually is the case with new consoles," Serkan Toto, CEO of Kantan Games, told CNBC on Monday.
"The biggest factor is of course the price hike that Nintendo thinks will lead to softer demand."
Nintendo shares since August 2024.
'Lowballing' guidanceNintendo has a reputation for issuing conservative guidance. Toto said the latest numbers are likely no different.
"I believe that Nintendo is, as usual, lowballing because users will get used to the new price of the console over time," Toto said.
Kazunori Ito, director at Morningstar, said in a note on Sunday that Nintendo's guidance was "overly conservative."
"We believe the console price hike was inevitable given the prolonged inflation in memory costs. While the weak shipment guidance likely reflects undue caution on demand, the hike itself was kept modest, and we expect shipments to hold up better than the company anticipates," Ito said.
The price of the Switch 2 was raised by $50 in the U.S., and by 10,000 Japanese yen (US$64) in Japan.
Ito said he expects Switch 2 sales to hit 19 million units in the current fiscal year compared to Nintendo's forecast of 16.5 million units.
"We view Nintendo's shares as undervalued," Ito said. "The market appears overly focused on near-term headwinds and conservative guidance, while underappreciating the long-term earnings growth from over 100 million Switch users migrating to the new platform and increasing game purchases."
Game sales concernsAnother metric the market watched closely was Nintendo's software or game sales, because blockbuster titles can help drive sales of hardware.
The Japanese gaming giant said it expects software sales across the original Switch and Switch 2 to total 165 million units in the fiscal year ending March 2027. That would mark a roughly 11% year-on-year fall.
"The year-on-year decline in game shipment guidance risks signaling that Nintendo lacks confidence in its pipeline," Morningstar's Ito said.
"However, as user engagement typically accelerates in the second year of a console cycle, we view this as too pessimistic," he said, adding that Morningstar forecasts software sales of 205 million units, above Nintendo's own forecast.
Nintendo has had some early game successes with the Switch 2, including "Mario Kart World" and "Pokémon Pokopia," which became a surprise viral hit and sold over 4 million units in the five weeks after its release in March.
watch now
However, investors are waiting to hear more on Nintendo's gaming pipeline, and in particular on any upcoming games involving some of its most iconic characters such as Mario and Zelda. Investors are watching closely for when the company will announce a Nintendo Direct event, which is where it typically lays out its upcoming major hits.
"We should get a new Nintendo Direct presentation laying out the software 2026 lineup as soon as next month," Toto said.
Stocks are edging higher Monday, with chipmakers Intel (INTC +6.98%), Nvidia (NVDA +1.31%), and Micron (MU +5.27%) among the most active stocks following last week’s blistering AI-driven rally. The mood has a complication, and that's oil. U.S. crude jumped 2.8% to $98.07 a barrel after weekend U.S.-Iran diplomacy stalled, leaving the Strait of Hormuz closed. Brent crossed back above $104. Rising energy prices are pushing bond yields up, with the 10-year at 4.41%, a headwind for growth stocks.
Two catalysts to watch this week: The Senate is expected to confirm Kevin Warsh as Fed chair today, and Tuesday’s April CPI print is forecast at 3.8% — up from 3.3% in March. Wildcard for markets: Trump heads to Beijing later this week to push Xi Jinping on ending the war and discuss trade. Texas AG Sues Netflix for Spying on Kids 3:47 pm — NFLX -2.60%
Texas Attorney General Ken Paxton filed suit against Netflix (NFLX 0.93%) on Monday, accusing the streamer of secretly collecting and selling user data to advertisers. The company has publicly claimed otherwise; the complaint quotes former CEO Reed Hastings saying in 2020, "we don’t collect anything." Paxton wants Netflix to purge illegally collected data and pay up to $10,000 per violation. My read on the suit," wrote CMFFrankDip, Ticker Guide for Netflix, "is that Netflix is using viewing data to target people with programmable ads—this is done by most every media company."
"When You Watch Netflix, Netflix Watches You": That’s the AG’s own language in the complaint — and it covers children, too, with the suit alleging Netflix deliberately engineered its platform, including autoplay, to maximize screen time and data harvesting. Billions at Stake: Netflix allegedly sold viewer habits to commercial data brokers and ad-tech firms for years, generating substantial revenue — now potentially subject to per-violation civil fines.
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Airbnb Is Becoming a Super App 3:31 pm — ABNB -2.22%
Airbnb (ABNB +0.85%) CEO Brian Chesky is done thinking small. He wants to transform Airbnb from a home-rental brand into a full-service platform built around individual identity. Picture Amazon’s (AMZN +0.32%) leap from books to everything—but for how you live, travel, and experience the world. Chesky wants a universal profile at the center, storing your preferences, building a real-world social graph, and eventually unlocking a membership program with up to 50 different offerings. Motley Fool analyst Jason Moser recently pointed out that Truist (TFC +2.31%) upgraded Airbnb from Sell to Hold with a $129 price target, citing 16% gross booking value growth in Q4 and improving 2026 profitability expectations.
"Proof of personhood" could be Airbnb’s secret weapon: Chesky wants Airbnb to host the internet’s most authenticated identity and richest personal preference library — a data moat that could become one of the company’s most valuable assets. Not all the news is rosy: Airbnb’s $2.5 billion bond sale to refinance maturing debt spooked investors enough to knock shares down 4%-plus, and Iceland just passed new short-term rental restrictions, a reminder that governments worldwide aren’t exactly rolling out the welcome mat for Airbnb’s core business.
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Is Kratos Worth 340 Times Earnings? 2:37 pm — KTOS -2.09%
Kratos Defense & Security (KTOS +5.04%) keeps sliding — down another 2% Monday — as Jefferies becomes the seventh analyst to cut its price target since last week’s earnings. To be fair, Jefferies still likes Kratos; it just likes it $5 less than before. Q1 revenue grew 23%, and a book-to-bill ratio of 1.6 means orders are piling up faster than Kratos can fill them. Still, free cash flow was negative $47.3 million.
The valuation is doing a lot of heavy lifting: At 340.0x earnings, with cash still burning, there’s not much room for disappointment. A Foolish take: The growth story here hasn't changed. Motley Fool National Security added to its Kratos position in March, calling it "one of the best growth stories in the defense sector over the next five years and beyond."
Wait, Bloom Energy’s a Space Stock Now? 2:04 pm — BE +12.11%
Bloom Energy (BE +5.42%) jumped more than 10% Monday on what can only be described as "vibes plus NASA." There’s no earnings surprise, no analyst upgrade. Simply a story about NASA testing fuel cells for a moon base. Researchers at Glenn Research Center are experimenting with systems that turn hydrogen and oxygen into electricity, heat, water, and breathable air. Bloom doesn’t build moon bases. Yet...
One giant leap for fuel cell investors: NASA’s lead engineer called fuel cells "ideal" for lunar habitats and rovers, and when the agency eventually needs mass production, it’ll need partners like Bloom. Not on the books today, but circle the lunar calendar: Moon revenue is currently $0 for Bloom, but a permanent Artemis base could make this the weirdest growth catalyst of 2026.
Today's Change
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12.69
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246.92
The High Price of Disney's Peace Deal 1:30 pm -- DIS -3.0%
Walt Disney (DIS +1.58%) is embroiled in a regulatory battle as FCC Commissioner Anna Gomez warns of a "coordinated campaign" to pressure ABC into submission. Republican Chairman Brendan Carr has fast-tracked a rare review of Disney’s eight broadcast licenses — originally set for 2028 — following controversial segments on "The View" and Jimmy Kimmel Live!. This aggressive oversight follows a $15 million settlement Disney paid to the Trump presidential library in late 2024 to resolve separate litigation. With the FCC now probing whether talk shows qualify as "bona fide" news exempt from equal-time rules, the media giant faces an unprecedented threat to its broadcast infrastructure and long-term operating certainty.
Broken Guardrails: The early license review breaks a four-decade streak of regulatory stability, signaling a shift where programming content directly dictates federal broadcast eligibility. The Settlement Trap: Gomez contends that previous financial concessions only "bought time," suggesting a rising cost of compliance that could weigh on Disney’s future cash flows and legal reserves. Today's Lunchtime News 1:35 pm -- GOOG -1.8%
Alphabet (GOOG 1.23%) security researchers said they found the first confirmed case of a cybercrime group using AI to build a hacking tool that can bypass defenses in a widely used system administration application. Google said it has "high confidence" that AI helped discover and weaponize the exploit, marking a real-world arrival of the threat scenario that recently sparked panic over Anthropic's Mythos model.
What happened: The hacking group used an AI model to find a previously unknown zero-day flaw that could bypass multifactor authentication and gain access to internal networks. Google alerted the tool's developer, who patched it before hackers could deploy it. The company declined to name the cybercrime group or the affected software but said the model used was neither Mythos nor Google's own Gemini. Policy response: Anthropic restricted Mythos's release in April, citing national security concerns over its vulnerability discovery capabilities. The White House has since moved to address malicious use of large language models, holding emergency meetings with tech and industry leaders. Google researchers said their findings suggest these threats are already a reality, not a future risk.
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348.99
Micron Propels DRAM ETF to Record Speed 12:45 pm -- DRAM +5.0%
The Roundhill Memory ETF (NASDAQ: DRAM) has become the fastest ETF in history to reach $6.5 billion in assets, hitting the milestone in just 36 days and dethroning BlackRock's (BLK +0.80%) iShares Bitcoin Trust. This record-breaking surge is powered by Micron Technology (MU +5.27%), which anchors 27% of the fund. Investors are aggressively piling into the memory supply chain, betting that high-bandwidth memory is the essential "new math" of the AI age. While the fund soared 13% on Friday alone, analysts warn that the industry’s history of boom-bust cycles remains a lurking risk if Western Digital (WDC +3.93%) and others expand capacity too quickly.
Exponential Model Demands: Analysts at D.A. Davidson suggest memory needs scale with AI context lengths; larger models require more chips, creating a self-reinforcing demand loop. Price Target Moonshot: Despite historical volatility, some firms maintain a Buy rating on Micron with a $1,000 price target, implying significant upside from current levels for Seagate Technology (STX +3.40%) and its peers.
Today's Change
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46.99
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938.88
Intel Rises on New Nvidia News 12:05 pm -- INTC +1.8%
Intel (INTC +6.98%) shares climbed Monday after CEO Lip-Bu Tan teased "exciting new products" in development with Nvidia (NVDA +1.31%). The collaboration centers on high-performance data center chips and AI-driven consumer PCs that integrate Nvidia’s RTX graphics into Intel’s silicon. This partnership, bolstered by Nvidia’s $5 billion stake in Intel, is a cornerstone of a massive turnaround that has seen shares surge nearly 500% over the last year. Further fueling the rally, reports indicate Intel has secured a preliminary deal to manufacture chips for Apple (AAPL +1.38%), signaling that its foundry business is finally gaining the scale needed to challenge Taiwan Semiconductor (TSM +2.09%).
The Logic of Autonomous Bots: While GPUs handle heavy AI training, Intel is capturing the "inference" market where its CPUs power the actual actions taken by autonomous AI agents. Foundry Momentum: Intel’s manufacturing arm grew 16% to $5.4 billion last quarter, proving it can attract top-tier rivals like Advanced Micro Devices (AMD +4.77%) and Qualcomm (QCOM +4.27%) as contract customers.
Today's Change
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6.98
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7.47
Current Price
$
114.51
Chipotle Sticks to Its Core Menu 11:40 am -- CMG -2.4%
Chipotle Mexican Grill (CMG +2.42%) CEO Scott Boatwright is doubling down on operational simplicity to drive long-term value, ruling out "random initiatives" like breakfast or fish tacos. Despite pressure to boost 2026 sales, Boatwright argues that breaking into the crowded breakfast daypart is too risky, while fish tacos are disqualified because the chain famously refuses to use freezers for its ingredients. While the brand is still "innovating back at the ranch" on dessert ideas, the focus remains squarely on maximizing the efficiency of the lunch and dinner rushes that have defined the company since 1993.
Ethos Over Expansion: By rejecting frozen proteins, the company maintains a premium "food with integrity" moat that sets it apart from rivals like McDonald's (MCD +0.94%) or Taco Bell (YUM +1.65%). Operational Discipline: Avoiding menu bloat ensures faster throughput in the assembly line, which remains the primary driver of margin expansion and store-level profitability. Meta AI Accused of Aiding Global Scammers 11:25 am -- META -1.4%
Meta Platforms (META 0.71%) is facing a major legal challenge after Santa Clara County filed a lawsuit alleging the tech giant knowingly profited from fraudulent advertisements. The complaint, representing all California residents, claims Meta earned up to $7 billion annually from "high-risk" scam ads on Facebook and Instagram. Prosecutors allege that leaked documents show Meta implemented "guardrails" to prevent anti-fraud measures from hurting the bottom line. Most concerning for investors, the suit suggests Meta’s generative AI may be assisting unethical marketers and that the company can "adjust the flood" of scam ads to meet specific revenue targets.
Algorithmic Complicity: The lawsuit alleges Meta targeted scam ads at users based on their past clicks, essentially creating an automated pipeline for fraudsters. Internal Conflict: While Meta claims it aggressively fights scams to protect user experience, civil prosecutors argue the company sold protected accounts to middlemen to bypass its own enforcement.
Today's Change
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566.90
High Rates Freeze April Home Sales 10:10 am
April home sales stalled, rising just 0.2% and missing analyst expectations of a 3% bounce. The lethargy stems from a sharp mortgage rate spike triggered by the conflict with Iran, pushing the 30-year fixed rate to 6.42%. While the S&P 500 sits at record highs, potential buyers face a record-high median April home price of $417,700. Tight inventory continues to benefit homebuilders like Lennar (LEN +2.95%) and D.R. Horton (DHI +2.50%), as existing homeowners remain "locked in" to lower rates, keeping the secondary market supply at a restrictive 4.4-month level.
Affordability Tug-of-War: Despite price gains, NAR reports that average income growth is outrunning home appreciation, though soaring borrowing costs largely neutralize these wage gains for new entrants.
Cash is King: All-cash deals maintained a 25% share of the market, insulating a quarter of transactions from the volatility seen by mortgage-dependent buyers and companies like Rocket Companies (RKT +3.15%).
Opening Bell 9:35 am
The S&P 500 and the Nasdaq are catching their breath this Monday following a historic six-week winning streak. Early gains were capped as President Trump dismissed Iran's latest peace proposal as "totally unacceptable," reigniting fears of a prolonged conflict. Consequently, West Texas Intermediate futures climbed 1% to over $96 per barrel. Despite the geopolitical friction, investors are leaning on last Friday’s blowout jobs report, where hiring doubled expectations, to support a "secular bull market" thesis. Markets remain near all-time highs as traders weigh a slowing economy against resilient corporate earnings.
Structural Shock Absorbers: Some analysts argue that while high energy prices may dampen growth, deep-seated structural strengths should prevent a total economic derailment. Geopolitical Stalemate: The rejection of Tehran's 14-point memorandum shifts the focus back to potential supply disruptions in the Strait of Hormuz, a key risk factor for global logistics and energy plays. Market indexes
S&P 500
-0.08%
Nasdaq
-0.21%
Dow
-0.10%
Top of the Morning 9:25 am -- CVSA flat in pre-market trading
By Jim Gillies
If you've spent any time watching my appearances on Fool24 or are a member of Hidden Gems Canada, where I spend most of my days, you'll know that my "schtick" is the small, the perhaps strange, the misunderstood. Basically, companies that don't get a lot of love around Fooldom aside from me.
One such company reported last week, and let's just say that early results validate that I've chosen to recommend it twice in HG Canada. I'm talking about Covista (CVSA +1.39%), the for-profit education company with a focus on medical professions (nurses, doctors, nurse practitioners, veterinarians). If that company name doesn't seem familiar, you may remember Covista under its prior name, Adtalem Global Education, with the name (and ticker) switch becoming official in February of this year.
The theme from Covista's fiscal third quarter can probably be summarized as, "We did what we said we were going to do."
Happy Monday! MNDY Surges on AI-Driven Efficiency Gain 8:00 am -- MNDY +19.33% in pre-market trading
Work management powerhouse monday.com (MNDY 3.86%) delivered a robust first-quarter beat, reporting revenue of $351.3 million--a 24% year-over-year increase that handily cleared internal and analyst expectations. Leadership highlighted a strategic shift toward consumption-based pricing and the successful rollout of its AI Work Platform as primary catalysts. Perhaps most significant for the long-term investor is the company's newfound operating leverage; CFO Eliran Glazer noted that internal AI productivity gains are now allowing the firm to scale top-line revenue without a corresponding increase in headcount. Despite a 190 basis point drag from foreign exchange, non-GAAP operating margins held steady at 14%, signaling a business that is becoming leaner as it grows more complex.
The Efficiency Inflection Point: By decoupling revenue growth from headcount, the company is demonstrating a software-as-a-service (SaaS) holy grail: widening GAAP operating margins, which doubled to 6% this quarter. Cash Flow Machine: The firm generated over $102 million in adjusted free cash flow, providing a massive capital cushion to further invest in autonomous AI agents that "do the work" for its 250,000+ customers.
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This Morning's Breakfast News 7:30 am -- GOOG -0.65%, NVDA -0.51% in pre-market trading
Alphabet (GOOG 1.23%) is on the verge of becoming the world's largest company, says Bloomberg, while "Big Short" investor Michael Burry warns it's "feeling like the last months of the 1999–2000 bubble." Alphabet stock has climbed around 150% over the past 12 months, nearly twice as far as current market-cap leader Nvidia's (NVDA +1.31%) rise.
"Alphabet holds a significant spot in almost every corner of the AI ecosystem": Luke O'Neill at CooksonPeirce says this combined with the rest of Alphabet's offerings "puts it in a prime position to be the biggest winner of AI." If Nvidia hadn't ended last week with a three-day surge, the two market caps would have been neck and neck Friday. "Stocks are not up or down because of jobs or consumer sentiment": Burry, meanwhile, added "They are going straight up because they have been going straight up" in a Substack post on Friday. All he could hear on financial TV and radio sources was "absolutely non-stop AI."
Cirrus Logic Reaches All-Time High on Outlook 6:45 am -- CRUS +0.77% in pre-market trading
By CMFGouldberg, Home Fool & Ticker Guide
Cirrus Logic (CRUS +1.35%) wrapped up fiscal year 2026 in strong fashion, beating analyst expectations on both revenue and adjusted EPS in Q4. The company crossed the $2 billion annual revenue threshold for the first time, driven primarily by largest customer Apple (AAPL +1.38%) -- which accounted for more than 90% of sales. While that level of customer concentration remains a genuine risk, Cirrus Logic is working to broaden its business, with a fast-growing laptop chip operation, next-generation camera controller chips in development, and a new power management chip being designed in collaboration with Apple for use in facial recognition technology (although this product is still roughly two years from reaching the market). Adding to investor optimism, the company's guidance for the current quarter came in well above what analysts had been expecting, sending the stock to new all-time highs. For investors, the primary concern (with apologies to the Talking Heads) is the same as it ever was: Can Cirrus Logic continue to execute at a high level for Apple while also building out new revenue streams that could eventually reduce its dependence on that single relationship? I'll also be keeping an eye on whether Cirrus can manage rising R&D costs and potential tariff headwinds without sacrificing its healthy profit margins and free cash flow.
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2.13
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160.00
Mindset Monday: Don't Monitor Volatile Stocks Too Often 6:00 am -- UPST +0.10% in pre-market trading
Member CandiceLee recently wrote on the Hidden Gems Primary Database in relation to Upstart (UPST 0.23%): "I have no idea how to understand any of it, and that's exactly why I bought into TMF lol. I am a complete dummy at this so I have to trust TMF. That is why I am here and also why I get distressed and confused."
Home Fool TMFVicki replied with the following:
"Are there companies that you do understand like Starbucks (SBUX +3.12%) or Costco (COST 0.47%) or Apple (AAPL +1.38%)? Do you own any of these? We recommend all three in Stock Advisor.
Not understanding how a finance company works, particularly one that is using AI to determine whether it should offer someone a loan and at what percentage rate, does not make anyone a dummy. It is a specialized field. While it is OK to invest in companies you don't understand, your level of distress makes it sound like maybe you have too large a position? Being able to sleep at night is important.
Upstart is a young company. It is competing against a lot of big companies. It is making progress. It might be the kind of company that you don't want to check in on too often. The stock price is going to move around on lots of things that aren't news about the company."
Today's Take: CEOs Who Play the Long Game 5:10 am -- NET +0.60% in pre-market trading
Here's a sneak preview, but head to the article to add your vote for the CEO that plays the long game the best, or to submit questions to any of the featured analysts today!
By Jason Moser
Team Rule Breakers
Cloudflare (NET +3.19%) co-founder and CEO Matthew Prince seems 100% committed to the long game. One quick glance at the financials might scare many away. The company has no GAAP profits and even free cash flow takes a hit thanks to stock-based compensation. But once you realize that's by design, then it starts to make a bit more sense. And we can't ignore the fact that the company has grown revenue at a 38% annualized rate over the past five years. He may rub some tech leaders the wrong way with his focus on the internet as an open, decentralized space (as opposed to being controlled by "walled gardens"), but the man has vision and drive. I've owned shares since 2021 and hope to own them for years to come.
Today's Change
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7.00
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226.67
Switch 2 Price Hike Stalls Nintendo Rally 5:00 am -- NTDOY -11.29%
Nintendo (NTDOY +0.27%) shares tumbled more than 11% on Monday after the gaming giant announced a surprise price hike for the Switch 2 and issued a conservative forecast for the year ahead. In response to skyrocketing memory chip costs, the company will raise prices in Japan by ¥10,000 on May 25, followed by a $50 increase in the U.S. starting September 1. While the console sold a record 19.86 million units in its first year, Nintendo expects hardware sales to decline to 16.5 million units for fiscal 2027. Investors are increasingly wary that a lack of confirmed AAA blockbuster titles, combined with higher entry costs for casual gamers, could stall the platform's momentum in its critical second year.
Margin Defense over Volume: Management is prioritizing profitability over unit growth by passing off rising component costs to consumers, a risky move as peer Sony (SONY +1.54%) maintains more aggressive pricing for the aging PlayStation 5. The "Bar is Low" Strategy: Despite the sell-off, some analysts suggest the downbeat guidance is a defensive play, noting that Nintendo has beaten its initial operating profit forecasts for four consecutive years.
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0.03
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11.13
Before the Opening Bell 4:05 am
Stock futures retreated Monday morning as hopes for a swift end to the Iran conflict evaporated following a sharp rebuke from the White House. President Trump dismissed Tehran's revised peace proposal--which reportedly demanded war reparations and full control of the Strait of Hormuz--as "totally unacceptable," effectively dashing the "peace dividend" optimism that drove indices to record highs last Friday. In response, Brent crude surged 4.2% to $105.57 per barrel, reigniting inflation fears even as the latest U.S. labor data showed a surprisingly resilient 115,000 new jobs for April. While tech-heavy markets in Asia remained buoyed by the ongoing artificial intelligence boom, the broader global outlook has shifted back to a "higher-for-longer" stance on energy costs and interest rates.
Moderna Gains Amid Hantavirus Vaccine Interest 4:00 am -- MRNA +3.99% in pre-market trading
Moderna (MRNA +6.33%) shares rose following renewed attention to potential mRNA-based hantavirus vaccine development. The interest comes after reports of a hantavirus outbreak on the MV Hondius cruise ship from Argentina to Cabo Verde highlighted the lack of approved human vaccines for the virus.
Unconfirmed partnerships drive speculation: Online reports and patent discussions have linked Moderna to early stage mRNA hantavirus research, potentially involving academic and government partners, though detailed program updates have not been widely publicized by the company. Biotech sector benefits from outbreak concerns: The stock gained ground amid broader vaccine sector interest following the cruise ship outbreak, with investors focusing on companies positioned to address emerging infectious disease threats through rapid mRNA platform deployment.
Exciting New Feature Figure Available for Pre-Order May 15 Ahead of Late-Summer Launch
Nintendo and Illumination’s record-shattering global blockbuster,
The Super Mario Galaxy Movie, is in theaters now
SANTA MONICA, Calif., May 15, 2026 (GLOBE NEWSWIRE) -- JAKKS Pacific, Inc. (NASDAQ: JAKK), in collaboration with Universal Products & Experiences, Illumination and Nintendo, will launch the pre-sale of its Chomping Wonder Bowser Jr. feature figure, inspired by Nintendo and Illumination’s record-shattering worldwide phenomenon, The Super Mario Galaxy Movie. The interactive figure will be available for pre-order at Target and Smyths beginning May 15, 2026, ahead of the next product rollout hitting shelves in late summer 2026.
Standing over 8 inches tall, Chomping Wonder Bowser Jr. delivers dynamic, action-packed fun with 13 points of articulation and a signature chomping motion activated by pushing his shell forward. The figure also includes a multi-head paint brush with swappable tips including a brush, axe, mace and arrowhead, allowing fans to recreate epic battle moments. A water-reveal feature brings added interactivity, as users can use the brush tip to reveal ink splatter effects again and again.
The launch comes as excitement around The Super Mario Galaxy Movie continues to build. The film has become one of the highest-grossing releases of 2026, reflecting the franchise’s enduring popularity and cross-generational appeal.
JAKKS Pacific’s The Super Mario Galaxy Movie product line has already demonstrated strong performance. Following the successful initial launch in Q1, top-selling items included the 5-inch Figures, Yoshi Egg Playset and 9-inch Plush, highlighting strong fan demand for both collectible figures and interactive play experiences.
Building on that momentum, new Fall offerings include:
Chomping Wonder Bowser Jr. Feature Figure [Target and Smyths exclusive]Mario Riding Yoshi Feature Figure [Walmart exclusive]Premium Figures w/ Accessories: Flying Mario, Cloud Luigi, Princess Peach, and BowserDeluxe Wonder Bowser Jr. Planet playset w/ Mini Bowser Jr. and Clown CarMinus World diorama with exclusive Mini Wart and Penguin Toad figuresMini-scale figures: Flying Mario, Cloud Luigi, and RosalinaPull-back vehicles: Yoshi on Motorcycle and Bowser Jr. in Clown Car [Walmart exclusive]9-inch plush: Flying Mario, Cloud Luigi and Rosalina The Chomping Wonder Bowser Jr. will be available for pre-order at Target and Smyths beginning May 15, 2026, with additional products arriving at major retailers nationwide later this summer.
About Nintendo + Illumination’s The Super Mario Galaxy Movie
Following the global phenomenon that brought The Super Mario Bros. to the big screen in 2023 and earned more than $1.3 billion, Illumination and Nintendo reunite for an all-new, action-packed chapter: The Super Mario Galaxy Movie.
After settling into their new life in the Mushroom Kingdom, Mario (Chris Pratt) and Luigi (Charlie Day) are drawn back into action when a mysterious call for help points toward the unexplored past of Princess Peach (Golden Globe winner Anya Taylor-Joy). The mission pulls Mario and Luigi—and their new family of friends—off familiar ground, launching a sweeping intergalactic journey across new worlds and with unexpected alliances.
The film reunites the all-star original cast, including Golden Globe nominee Jack Black (Jumanji films) as Bowser; Emmy winner Keegan-Michael Key (The Lion King) as Toad; and Emmy nominee Kevin Michael Richardson (American Dad!) as Kamek. They are joined by new cast members including Emmy Award winner Benny Safdie (Oppenheimer) as Bowser Jr.; Emmy and Grammy winner Donald Glover as Yoshi; Emmy and Golden Globe nominee Issa Rae as Honey Queen, Luis Guzmán as Wart, and Academy Award® winner Brie Larson (Captain Marvel) as Rosalina.
The film is directed by returning Golden Globe nominated filmmakers Aaron Horvath and Michael Jelenic (collaborators on Teen Titans Go!, Teen Titans Go! To the Movies) and it is written by returning screenwriter Matthew Fogel (Minions: The Rise of Gru), with Emmy Award nominee Brian Tyler (Fast X) returning to compose the score.
From Nintendo and Illumination—creator of the global blockbuster Despicable Me, Minions, Sing and The Secret Life of Pets franchises—The Super Mario Galaxy Movie is produced by Illumination’s Academy Award® nominated founder and CEO Chris Meledandri, p.g.a., and by Nintendo’s Representative Director and Fellow Shigeru Miyamoto, the creator of Mario.
About Illumination
Illumination, founded by Chris Meledandri in 2007, is one of the entertainment industry's leading producers of event-animated films, including Despicable Me—the most successful animated franchise in cinematic history—as well as the record-breaking The Super Mario Galaxy Movie, The Super Mario Bros. Movie, Dr. Seuss' The Lorax, Dr. Seuss' The Grinch, Migration, and The Secret Life of Pets and Sing films. Illumination's iconic, beloved franchises—infused with memorable and distinct characters, global appeal and cultural relevance—have grossed more than $11 billion worldwide. Illumination has an exclusive financing and distribution partnership with Universal Pictures.
About Nintendo
Nintendo Co., Ltd., headquartered in Kyoto, Japan, has been providing a wide range of entertainment products and experiences since its founding in 1889, beginning with the manufacture and sale of Hanafuda playing cards.
Since the 1983 release of the Family Computer (Famicom) system in Japan, and continuing through Nintendo Switch 2, Nintendo’s focus has been the development, manufacturing, and sale of its gaming systems and software. To date, Nintendo has sold more than 5.9 billion video games and over 860 million hardware units globally, and has created franchises such as Mario™, Donkey Kong™, The Legend of Zelda™, Pokémon™, Metroid™, Kirby™, Animal Crossing™, Pikmin™, and Splatoon™.
Nintendo strives to expand the number of people who have access to its characters and worlds. Its continuing mission is to put smiles on the faces of everyone it touches with unique entertainment experiences, centered on its integrated video game hardware and software products.
About Universal Products & Experiences (UP&E)
Universal Products & Experiences (UP&E) globally drives the expansion and elevation of NBCUniversal’s iconic collection of brands, intellectual properties, characters, and stories based on the company’s extensive portfolio of properties created by Universal Pictures, Illumination, DreamWorks Animation and NBCUniversal Television and Streaming. The division executes this through innovative physical and digital products, as well as engaging retail and product experiences across our expansive global theme park destinations (for both owned and third-party IP), location-based venues, e-commerce product platforms, and retailers around the world. Along with global brand strategy and creative, UP&E’s lines of business include Consumer Products and Games, along with Theme Parks Products & Retail. UP&E is a division of Universal Destinations & Experiences, part of NBCUniversal, a subsidiary of Comcast Corporation. More information is available at universalproductsexperiences.com.
About JAKKS Pacific, Inc.
JAKKS Pacific, Inc. is a leading designer, manufacturer and marketer of toys and consumer products sold throughout the world, with its headquarters in Santa Monica, California. JAKKS Pacific’s popular proprietary brands include Disguise®, Fly Wheels®, Charming™, Kidtopia™, Moose Mountain®, Maui®, ReDo® Skateboard Co., Sky Ball®, and Xtreme Power Dozer® as well as a wide range of entertainment-inspired products featuring premier licensed properties. Through their products and charitable donations, JAKKS is helping to make a positive impact on the lives of children. Visit us at www.jakks.com and follow us on Instagram (@jakkspacific.toys), X (@jakkstoys), YouTube (@JAKKSPacific), Facebook (@jakkspacific.toys) and LinkedIn (JAKKS Pacific).
Nintendo delivered record-breaking Switch 2 hardware and software sales, surpassing revised forecasts and cementing its market leadership. Nintendo projects lower Switch 2 sales and software units for FY2027 due to economic volatility and a $50 price increase. Robust cash reserves of $13.97B and minimal debt provide flexibility for innovation, dividends, and resilience against rising DRAM costs.
Nintendo Co. NTDOY rallied as much as 6.8% in Tokyo on Tuesday, delivering its biggest gain in two months as investors rotated away from richly valued AI-linked trades and looked for value in beaten-down parts of the market. The move gave Nintendo its third straight day of gains, its longest winning streak since mid-March, and came as Japanese video game shares broadly rebounded. Bandai Namco Holdings and Konami Group both climbed more than 9%, showing how quickly investor attention may be shifting from AI winners toward gaming names that had been under pressure.
The rebound comes after months of weakness tied to a memory chip supply crunch and concerns that tighter component availability could hurt hardware sales. Nintendo has also been viewed as one of the market's AI losers, especially after recently posting its longest monthly losing streak in 10 years. Amir Anvarzadeh of Asymmetric Advisors said Tuesday's rally was part of a rotation out of AI technology and into beaten-up names, adding that the move reflected growing caution around massive AI gains that may not be sustainable.
That caution is building ahead of Nvidia's NVDA earnings on Wednesday in the US, with Invesco's Tomo Kinoshita saying some investors may be temporarily selling AI names before the results. Still, Nintendo's rally may not yet signal a fundamental revaluation. Anvarzadeh warned that concerns around costlier memory and a softer upcoming game pipeline continue to weigh on the outlook, even after Tuesday's jump. Nintendo shares remain down more than 28% so far in 2026 and trade around ¥7,600, making the move look more like a possible AI-fatigue rotation than a full reset of investor expectations.
Forget Bitcoin, high-speed memory is the new digital gold, and companies that supply data storage have seen their stock prices explode this year.
Memory has become a crucial bottleneck as AI training programs produce massive amounts of data, and memory companies like Micron Technology Inc. NASDAQ: MU can’t keep up with their insatiable demand.
But memory storage has a finite supply, and hyperscalers are siphoning that supply from companies accustomed to a cyclical business.
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Video game companies re one group that have suddenly found themselves as have-nots, especially those that manufacture memory-needy gaming consoles, which sit in the crosshairs of one of the biggest trends in the tech sector.
DRAM and NAND memory, key components in gaming console construction, have doubled since last year, and the major suppliers are reporting capacity shortages into 2028. High-performance memory is a must for next-gen consoles, and it can’t be engineered out of the bill of materials.
The following three companies are directly or indirectly affected by the memory shortage. And considering how much capex hyperscalers are committing, investors may want to avoid these names until the memory shortage abates.
Nintendo: New Hardware Launching Directly Into the ShortageNintendo Today
$11.06 -0.04 (-0.36%)
As of 01:31 PM Eastern
52-Week Range$10.39▼
$24.92Dividend Yield0.36%
P/E Ratio18.43
Nintendo Co. Ltd. OTCMKTS: NTDOY is most exposed to memory shortages as it lacks diversification beyond the console market and has a new device early in its lifecycle.
The Switch 2 was released in June last year at $449, making it the most expensive console the company had ever released.
CEO Doug Bowser (yes, Bowser runs Nintendo) defended the price point, citing the console’s premium features and high demand.
But now the console is facing unexpected headwinds due to higher memory costs, forcing management to announce a Sept. 1 price hike to $499.
The timing of the price hike couldn’t be worse. Nintendo’s margins were already under pressure from tariffs, and now the company is forced to increase prices on its already expensive next-gen console just 15 months after launch.
Nintendo’s typical console launch strategy involves promotions and discounts to build a customer base, and then selling high-margin software to that wide base. But the company is projecting Switch sales to drop 17% year-over-year (YOY) from fiscal 2026 to 2027, with overall net sales declining 11% and net profits declining 27%. With margins already under pressure, Nintendo has no choice but to pass on expanding costs to customers.
NTDOY shares have been in a steady downtrend since the start of the year, highlighted by December’s Death Cross that reinforced resistance at the 50-day moving average. All attempted breakouts have been thwarted, and the Relative Strength Index (RSI) remains trapped in a bearish cycle.
Sony: Gaming Segment Margins Getting Tougher to DefendSony Today
$21.10 +0.33 (+1.61%)
As of 01:56 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$19.63▼
$30.34Dividend Yield0.47%
Price Target$22.00
Sony Group Corp. NYSE: SONY is far more diversified than Nintendo thanks to its music, movies, and financial services platforms.
But the gaming segment is typically a profit machine, and Sony is feeling the heat after two price increases: one for the PlayStation 5 family of consoles and another for new PlayStation Plus subscribers.
Like Nintendo, PlayStation consoles are a lower-margin product that drives recurring high-margin software and subscription sales.
And while the PS5 is an aging product, the memory shortage is forcing management to consider delaying the PlayStation 6 release.
Sony stock shows some signs of a revival, but the long-term technical trend remains murky. The Moving Average Convergence Divergence (MACD) indicator is volatile but trending up, and the share price recently overtook the 50-day moving average. However, January’s Death Cross still looms large, and the MACD looks to be forming a new bearish crossover that could see the share price re-challenge the 50-day MA.
This is a fair market value price provided by Massive. Learn more.
52-Week Range$187.63▼
$264.79Price Target$287.06
Take-Two Interactive Software Inc. (NASDAQ: TTWO doesn’t purchase any memory, and its products face minimal margin compression from sky-high memory prices.
Instead, Take-Two Interactive is the largest publicly traded game developer, responsible for popular titles like Grand Theft Auto and Red Dead Redemption.
This year, the company is pushing all in with Grand Theft Auto 6, a long-awaited sequel that’s finally out of Development Hell.
Take-Two is planning a Nov. 19 release for GTA6 on PlayStation and Xbox consoles.
But if price hikes continue to push consoles out of reach for consumers, the launch could be softer than anticipated.
The company projects fiscal 2027 revenue between $7.9 billion and $8.1 billion, with nearly all of it expected to come from GTA6 sales. Any misfire on this launch could be bad news for a stock that already trades at 34x forward earnings and 6x sales.
Following a Death Cross and massive drawdown earlier this year, the stock has actually rebounded nearly 15% since the end of March. But the rebound appears headed for rejection as the price has failed to sustain a breakout above the 200-day moving average. The RSI has also dipped into bearish territory, and the stock now needs to defend the 50-day MA or risk a further decline.
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Serkan Toto, CEO of Kantan Games, says despite beating its own sales targets, investor expectations have been sky high for Nintendo and its Switch 2 console. He explains that investors are also watching the software that Nintendo is launching and that the company needs to pump out as many first-party blockbusters as possible over the next couple of months, and in the years ahead.
Nintendo's Switch 2 has proven demand, selling nearly 20 million units and becoming the company's fastest-selling console launch ever. Investors are focusing on slowing hardware growth while overlooking Nintendo's expanding ecosystem and software monetization strategy. Nintendo continues to report strong software momentum, rising digital sales, and healthy engagement across its 129 million annual playing users.
Nintendo said Monday that it would pay a fine of 35 million euros ($40 million) to settle a French claim over faulty controllers on its Switch consoles.
HomeInvestingYour Digital SelfYour Digital SelfWhy the coming $1,000 videogame console will squeeze hardware stocksLast Updated: June 9, 2026 at 4:16 p.m. ET
First Published: June 8, 2026 at 2:21 p.m. ET
Most of the artificial-intelligence story gets told from the supplier side, where the numbers are spectacular. On the other side are the companies that buy that memory and build it into things they sell: game consoles, phones, laptops and the components inside a desktop computer. They did not create the shortage, but their products are being repriced by it.
For an investor, the question is no longer whether a company is involved with AI. It is which side of the data center a company sells to. The memory and storage makers are printing money. The hardware companies that depend on them are eating the cost, and the market is only starting to tell the two apart.
A person holds a Nintendo Switch 2 game console's box as Nintendo starts selling the new consoles globally, at an electronics store in Tokyo, Japan, June 5, 2025. REUTERS/Issei Kato/File Photo Purchase Licensing Rights, opens new tab
TOKYO, June 10 (Reuters) - Nintendo's (7974.T), opens new tab shares fell 7.5% on Wednesday after the company's Nintendo Direct presentation of forthcoming games lacked titles from top franchises such as "Super Mario".
The Kyoto-based company's stock price has been hammered by concerns over a lack of high-profile games to build momentum for the Switch 2 gaming device.
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The shares are down around a third year-to-date.
The lack of a "mainline 3D Mario" for this year's holiday shopping season is "commercially meaningful", Jefferies analyst Atul Goyal wrote in a client note.
The Switch 2 launched last June with titles including "Mario Kart World" and later "Donkey Kong Bananza".
"Year 2 now enters the holiday window without a franchise title of comparable pull," Goyal wrote.
Last month Nintendo hiked Switch 2 prices as it grapples with a memory chip price boom, which is also seen as a risk to sales momentum due to its price-sensitive consumer base.
Reporting by Sam Nussey; Editing by Christopher Cushing
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