As Nintendo is reporting their earnings for the fiscal year ending March 31st, 2022, they’ve also announced that they’ll be splitting their stock 10-for-1 in October 2022. This move will increase the liquidity of their shares by lowering the price-per-share in order to better appeal to retail investors. Nintendo also announced plans to buy back ¥56.36 billion worth of its own stock, which will happen tomorrow, May 11th.
The news of the stock split and buyback comes amid a forecasted slowdown in Nintendo Switch sales, as they expect to sell only 21 million units in the fiscal year ending March 31st, 2023, a 9% decrease from the previous year’s 23.06 million. The decreasing Switch sales are expected to be related to the global semiconductor shortage and COVID-19 related delays and restrictions.
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