Following the official release of Nintendo Switch 2 in early June, which sparked immense global player interest and purchases, Nintendo's stock price had already been on a continuous upward trend even before launch. As of now, the investment required for a single trading unit (100 shares) has reached an all-time high, reflecting strong market confidence in Nintendo.
Today (June 30), Nintendo also released an official statement regarding a potential stock split. This announcement addresses the disclosure obligations for listed companies where the investment unit exceeds 500,000 Japanese Yen, discussing the company's current strategy and its potential to attract a broader investor base.
Nintendo stated that while lowering the investment threshold through a stock split could indeed help expand its investor base and enhance stock liquidity, the company will "evaluate the decision cautiously from multiple perspectives" regarding whether to proceed with a stock split.
The content of this announcement is consistent with statements made in June 2023 and June 2024, neither of which resulted in a stock split.
Looking at the current stock performance, Nintendo's share price has shown a sustained upward trend in the short term (within the last month) following the release of the Nintendo Switch 2. Although the company recently apologized to shareholders at its general meeting for the current production shortages of the Switch 2, the stock remains robust.
Extending the view to a full year reveals a considerably impressive upward trajectory for Nintendo's stock.
Nintendo's last stock split occurred in October 2022, when it executed a "one-for-ten split," reducing the per-unit investment from approximately 6 million Japanese Yen to 600,000 Japanese Yen. This move successfully attracted a larger number of individual investors.
While stock splits are a perennial topic, given the current upward trend in stock prices, Nintendo might indeed consider another stock split this year, potentially after a three-year interval, to attract a wider range of investors and further enhance stock liquidity.
Note: Financial figures and earnings forecasts should be confirmed through the company’s official announcements.
via： itmedia