The head of New York hedge fund Melvin Capital Management is making a $400 million short bet against Nintendo, according to Bloomberg.
Gabriel Plotkin’s fund was short 1.2 million shares, or about 0.8% of Nintendo’s outstanding stock, according to the latest filing with the Tokyo Stock Exchange. Bloomberg said it’s the largest such trade against the company since at least 2013.
“Investors have been baffled by the sudden swoon and Plotkin’s position may add to their concerns,” Bloomberg’s Yuji Nakamura said. “The stock’s poor performance has dominated coverage in the financial and gaming press, and discussions on social media, raising questions about whether long-term shareholders are losing faith in the outlook for the Switch game console.”
Nintendo had an impressive 2017 financially thanks to the launch of the Switch. It sold an estimated 17.79 million units, beating its own prediction of 15 million. The company believes it can sell 20 million more this financial year.
Gabriel Plotkin’s fund was short 1.2 million shares, or about 0.8% of Nintendo’s outstanding stock, according to the latest filing with the Tokyo Stock Exchange. Bloomberg said it’s the largest such trade against the company since at least 2013.
“Investors have been baffled by the sudden swoon and Plotkin’s position may add to their concerns,” Bloomberg’s Yuji Nakamura said. “The stock’s poor performance has dominated coverage in the financial and gaming press, and discussions on social media, raising questions about whether long-term shareholders are losing faith in the outlook for the Switch game console.”
Nintendo had an impressive 2017 financially thanks to the launch of the Switch. It sold an estimated 17.79 million units, beating its own prediction of 15 million. The company believes it can sell 20 million more this financial year.
- 7/30/2018
- by Stefanie Fogel
- Variety Film + TV
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