3 Reasons Why I Bought More Nintendo Stock in 2025

It has been a couple of years since I first purchased shares of Nintendo (NTDOY). Back then, the company was trading near a three-year low, but I believed that Nintendo was on the verge of a comeback. Since my initial investment, the stock has surged nearly 60%, even amidst some disappointing earnings reports.

I had three core reasons for buying Nintendo stock in 2023, and I feel they are even more compelling in 2025. Even though the stock has appreciated since my original position, I took the opportunity to boost my investment last week. Let's explore why I believe Nintendo is poised for further success this time around, highlighting the three key points that affirm my decision.

1. The Movie Magic

Nintendo shares have outperformed the market in 2025, climbing 23% this year alone. This progress comes despite the company concluding a fiscal year marked by revenue declines for three out of the last four years. The exception was fiscal 2024, which began in April 2023, largely credited to the collaboration with Comcast’s Universal Studios, resulting in the release of The Super Mario Bros. Movie.

This animated film debuted 30 years after the original live-action version, which was not well-received. However, the updated animated film connected with audiences, becoming one of only two movies in 2023 to surpass $1 billion in global ticket sales, with only Barbie outperforming it.

The success of the film has opened numerous avenues for retail and digital sales in addition to initial box office earnings. Moreover, a hit movie creates strong marketing opportunities in merchandising and licensing. What’s exciting now is that Nintendo and Comcast are set to release The Super Mario Bros. 2 in April next year. Sequels to blockbuster films often achieve even higher success than their predecessors.

2. Expanding the Adventure

Before I made my investment in Nintendo two years ago, I visited Super Nintendo World at Universal Studios Hollywood shortly after its grand opening in February 2023. This is an example of blending work with pleasure! Nintendo’s collaboration with Comcast has resulted in the opening of Mario-themed attractions in several Universal Studios parks.

Though this partnership was announced in 2017, it takes time to bring such expansive projects to life. The area initially debuted at Universal Studios Japan in 2021, was followed by the California park in 2023, and an even larger attraction is scheduled to open soon at Universal's Epic Universe theme park in Florida. This new park aims to feature three rides, significantly increasing the experience compared to California's single signature attraction, Mario Kart: Bowser's Challenge.

Epic Universe marks the first major theme park expansion in the United States in over two decades, creating significant excitement. The area, which includes Nintendo-themed gift shops and restaurants, has drawn large crowds consistently. As Epic Universe nears completion, it stands to be a major contributor to Nintendo's revenue, with Universal Studios Singapore also in the pipeline for future expansion.

3. The Gaming Boom

It's important to remember that Nintendo is fundamentally a gaming company, with its origins dating back to 1889 when it began making playing cards. The company’s recent financial challenges largely stem from a lengthy gap in console releases. It has been eight years since the Nintendo Switch was launched, which is a longer interval than usual for this classic gaming firm.

• 2006: Introduction of the Wii
• 2012: Introduction of the Wii U
• 2017: Introduction of the Nintendo Switch

My optimistic view in 2023 was that a new gaming system was necessary due to the extended timeline. Previously, Nintendo had rolled out new consoles approximately every five to six years. Unlike the offerings from competitors like Xbox and PlayStation, Nintendo’s console launches require notable advancements in technology.

While no new console was announced in 2023 or 2024, this year is different. Nintendo has confirmed that the Nintendo Switch 2 will launch later this year, with more details to be revealed during its Nintendo Direct event on April 2.

Game consoles naturally follow a cyclical revenue pattern. Typically, the first year of a new console sees a revenue surge largely based on hardware sales, though they often carry low-profit margins. Revenue tends to peak three years later as software titles and the player base expand. With the new fiscal year starting in April, this will mark the end of a string of unremarkable financial results, paving the way for solid growth moving forward.

Despite the recent ups and downs, Nintendo remains a consistently profitable venture. With a healthy cash position, its $84 billion market value translates to an enterprise value of about $70 billion. The current modest dividend is likely to rise sharply as Nintendo’s profitability grows significantly. It wouldn’t be surprising to see the stock price reflect this upward trajectory as well.

Nintendo, Stocks, Investing