Nintendo Announced a 10-for-1 Stock Split Amid Ongoing Supply Chain Woes

Split Planned for October

Nintendo (NTDOY) plans a 10-for-1 stock split that will be effective October 1. The video gaming company is following in the footsteps of other companies that have made similar announcements recently, such as Apple (AAPL) and Amazon (AMZN).

While a split doesn’t change the value of the company or individual shares, valuations can get an eventual boost as the lower price makes shares comparatively more affordable for more investors. Nintendo also announced it will buy back about $432 million worth of shares.

Supply Chain Woes

Nintendo is one of many facing the downstream effects of supply chain disruptions. In its most recently-completed fiscal year, sales of its popular Switch video game unit declined by 20%. The company blamed “shortages of semiconductor components and other parts.”

Looking ahead, Nintendo predicts ongoing COVID-19 production disruptions and transportation issues will further limit its stock of products, especially given the difficulty securing key components such as semiconductors. The company estimates Switch sales’ revenue will drop another 9% in the coming year.

Strong Gaming Demand

On a more optimistic note, demand for video games is high, even as pandemic restrictions ease and more people head outdoors. Nintendo currently has about 100 million players per year who flock to its popular games such as Pokémon Legends, Arceus, and Mario Kart. It also has new offerings coming up such as Nintendo Switch Sports.

Meanwhile, both Microsoft (MSFT) and Sony (SONY) have made recent announcements of their plans to spend billions to acquire video game platforms. It seems the popularity of these games hasn’t escaped the watchful eyes of Big Tech.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

James Flippin ABOUT James Flippin James Flippin is the son of a financial advisor who grew up hearing and learning about bond yields, interest rates, the stock market, and the ins and outs of Wall Street. After stints as a licensing and business broker for Marcus and Millichap in New York City, James moved into broadcasting and became a reporter and anchor. He covered crime, politics, finance, and tech at NBC News Radio while working part-time as a producer for SiriusXM. James graduated from the University of Delaware with a bachelor’s degree in political science and economics. He's also an accomplished podcaster with over 10-years of experience.

TLS 1.2 Encrypted
Equal Housing Lender