Well, it looks like Nintendo finally did something that made investors happy. Following the reveal of the Switch Lite, Nintendo's stock reached a nine-month high, climbing nearly 4.5% to ¥41,780. This is the highest point Nintendo's stock has seen since all the way back in Oct. 2018.
What had investors so excited about the Switch Lite reveal? Kantan Games analyst Dr. Serkan Toto shared his thoughts on the matter.
“Investors should see the Switch as way for Nintendo to substantially increase the install base and prolong the life-cycle of the console for years. This device will be a mega hit.”
Wedbush Securities analyst Michael Pachter also had some thoughts to share on the Switch Lite.
“The (Switch Lite is the) right product at the right time. The timing of the release appears favorable, given that it is roughly two months ahead of Black Friday, and occurring at a time when sales of the PS4 and Xbox One should ramp down ahead of the console refreshes from Sony and Microsoft at holiday 2020, giving Switch Lite a roughly fourteen month head start.”
Pachter expects Nintendo to ship 20 million Switch hardware units and 140 million Switch software units in the fiscal year ending in March 2020, up from his previous guidance of 18 million and 125 million respectively. Pachter also expects the Switch Lite to be supply constrained through the end of the calendar year, and estimates the device will ship 8.5 million units this fiscal year and 11.5 million the following year.