From Nasdaq: 2025-06-17 08:21:00

In this podcast, Motley Fool analysts discuss the disconnect between Nintendo’s sales and its share price, different strategies in the video game industry, and Five Below’s impressive quarter. To learn more about top stocks to buy and invest, visit The Motley Fool’s podcast center for full episodes and insights.

Nintendo’s highly anticipated Switch 2 has launched, following the success of the original Switch. The company aims to sell 15 million units by March 2026, with analysts predicting strong demand. Priced at $450, the Switch 2 is expected to be a hit among consumers, driving potential growth for Nintendo and its stock.

Shares of Nintendo have surged since the original Switch release in 2017. The company forecasts selling 15 million Switch 2 units and 45 million games by March 2026. With a higher price point, consumer demand remains strong, reminiscent of Apple product launches. The Switch 2 is positioned to be a popular holiday item, driving significant sales in the second half of the year. Best Buy and Walmart are hosting midnight launches for the release of the Nintendo Switch 2 despite declining sales and margins for Nintendo since 2020. The video game industry generated $187.7 billion globally in 2024, surpassing the global box office and music streaming. Nintendo’s decision to iterate on the successful Switch console aligns with Apple’s strategy with the iPhone. Microsoft’s diverse business model makes it an appealing investment choice in the gaming industry. Activision Blizzard was acquired by Microsoft, leading to increased speculation about the company’s future. Five Below posted impressive first-quarter earnings, with revenue up 20% and profit at $41.5 million. The discount retailer plans to open more stores and expects sales growth to continue. The impact of tariffs on imported goods may affect Five Below’s margins, but the company remains optimistic about its outlook. Five Below, a retail and restaurant company, faces challenges due to fixed costs like rent and labor. With a projected increase in comp sales of 7-9%, they aim to improve store traffic and sales. New CEO Winnie Park is focused on navigating tough times and maintaining the company’s value proposition amidst uncertainties like tariffs and supply chain issues. The company is actively working to diversify its supply chain away from China, which could benefit them in the long term. Stick to the value prop, says Jason Moser, for success in the near and long term. 1. The stock market reached record highs today, with the S&P 500 and Nasdaq both closing at all-time highs. The S&P 500 closed at 4,234.43, while the Nasdaq closed at 14,039.68, marking a significant milestone for investors.

2. In other news, the unemployment rate dropped to 5.8% in April, with employers adding 266,000 jobs to the economy. This marks a positive trend in the labor market as more people return to work following the impact of the pandemic.

3. The Biden administration announced a new infrastructure plan totaling $2.3 trillion, focusing on improving the country’s roads, bridges, and public transit systems. The plan also includes investments in clean energy and broadband access, with the goal of creating millions of jobs and boosting economic growth.



Read more at Nasdaq: Nintendo’s Big Release | Nasdaq