Analysts React To Nintendo's Worst Daily Performance Since 1990

Shares of Tokyo-listed Nintendo Co., Ltd NTDOY plunged 18 percent on Monday, the most its fallen since 1990, after stunning investors with a statement that the wildly-successful Pokemon Go mobile game will have a limited impact on its earnings.

Bloomberg, citing Macquarie Securities' analyst David Gibson, reported that Nintendo's effective economic stake in the mobile game is a mere 13 percent. This may also explain why Nintendo's stock fell the maximum daily amount allowed on the Tokyo exchange and wiped out 708 billion yen ($6.7 billion) in Nintendo's market value.

Related Link: Nintendo Crashes After Company Admits Pokémon GO Has Limited Impact

Tomoaki Kawasaki, an analyst at Iwai Cosmo Securities, was also quoted by Bloomberg as stating that Nintendo's stock is still "overheated" in the short-term.

Nobuyuki Fujimoto, a senior market analyst at SBI Securities Co, also shared a similar sentiment with Bloomberg. He pointed out that the announcement itself isn't necessarily "shocking" but it is a "surprise" the press release was issued on Friday rather than when the company reports earnings on Wednesday.

Fujimoto added that since the Pokemon Go mobile game was officially launched in Japan, the company has effectively "exhausted all the catalysts."

The next potential catalyst, the expansion of Pokemon Go to China, remains an uncertainty. The mobile game requires use of geographical data but this is restricted by the Chinese government.

Investors are also anxiously awaiting Nintendo's announcement on future mobile games and the next generation console which is expected to be released next year.