Nintendo Co., Ltd., together with its subsidiaries, develops, manufactures, and sells home entertainment products in Japan, the Americas, Europe, and internationally. It also offers video game platforms, playing cards, Karuta, and other products; and handheld and home console hardware systems and related software. The company was formerly known as Nintendo Playing Card Co., Ltd. and changed its name to Nintendo Co., Ltd. in 1963. Nintendo Co., Ltd. was founded in 1889 and is headquartered in Kyoto, Japan.

NINTENDO CO LTD UNSP/ADR

Key Points
Philip Morris International is a great dividend growth stock to buy for your portfolio today.
Nintendo's profit inflection will mandate a higher dividend payout.
It isn't a high starting dividend yield, but room for dividend growth that makes for the best dividend stocks.
The easiest stocks to own are the ones that pay you growing dividends every year. Dividend income lets you sit back and appreciate a steady cash stream coming to your portfolio, regardless of where a stock trades in the interim.
Growing dividend payouts are the best stocks to own with this strategy for those with a longer time horizon, even if their current dividend yields aren't high.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
But how do you determine what stocks have the best dividend growth potential? It all comes down to earnings growth. Here are two dividend stocks worth buying more of, even at today's prices.
Betting on new age nicotine
Tobacco use is declining worldwide. But nicotine usage is not. Non-tobacco nicotine products are growing faster than the decline of traditional cigarettes, with new products like electronic vaping and pouches bringing the category back to growth.
No company has benefited more from this transition than Philip Morris International (NYSE: PM). The tobacco giant generated $16.9 billion in revenue from its smoke-free business in 2025, up 15% year over year, and now accounts for more than 40% of overall sales. Brands such as Zyn in nicotine pouches and Iqos in heat-not-burn smoking devices are growing quickly around the globe in wealthier markets like the United States, Europe, and Japan.
Right now, Philip Morris stock is down 18.5% from all-time highs, sporting a starting dividend yield of 3.8%. As the company's new-age nicotine products continue to grow, its record-high operating income of $14.4 billion last year will keep rising. This will fuel dividend growth, as the stock's dividend has risen 44% cumulatively over the last 10 years. Philip Morris International is a great dividend growth stock at today's prices.
An incoming profit inflection
Nintendo (OTC: NTDOY) is undergoing an even larger business transition compared to Philip Morris International. It is currently transitioning its player base to its new Nintendo gaming hardware, the Nintendo Switch 2, which was released less than a year ago. The device is projected to have sold 19 million units through the end of Nintendo's fiscal year, which ended in March.
The stock's current dividend yield is 2.1%, which is below the desired level. However, investors can use management's 60% dividend payout policy as a barometer for where dividends might grow in the years ahead.
At the start of a hardware cycle, Nintendo will sell many new units but generate little profit growth due to the slim margins on hardware sales. Software or game sales are where it makes its money, and those sales will follow in the years ahead. We are already seeing this boost with new games like Pokémon Pokopia, which sold 2.2 million units in its first four days after release.
Along with Nintendo's foray into other entertainment initiatives such as theme parks and movies, investors should see net profit inflect higher over the next five years. Nintendo's net income was $4 billion in 2021. With inflation, higher selling prices, and revenue diversification, I think Nintendo can clear well over $5 billion in net profit in the years ahead, leaving $3 billion a year for dividend payouts.
The stock currently has a market cap of $61 billion and a large cash balance on the balance sheet. This will give Nintendo a forecasted dividend yield of 5% over the next few years based on its payout policy of 60% of net income.
Why starting dividend yield isn't everything
Novice investors will look at high starting dividend yields and think they are the best dividend stocks to buy. These are dangerous stocks to buy, because it typically means the businesses are in distress and are liable to cut dividends in the future. A better hunting ground is great businesses with the potential for durable dividend growth in the years ahead.
Both Philip Morris and Nintendo are great businesses that have stood the test of time. At today's prices, they look like fantastic dividend growth stocks you can sit and watch the cash roll in from for years to come.
Should you buy stock in Nintendo right now?
Before you buy stock in Nintendo, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nintendo wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $500,572!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,223,900!*
Now, it’s worth noting Stock Advisor’s total average return is 967% — a market-crushing outperformance compared to 199% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of April 25, 2026.
Brett Schafer has positions in Nintendo. The Motley Fool has positions in and recommends Nintendo. The Motley Fool recommends Philip Morris International. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

2 Dividend Stocks Worth Buying More Of, Even At Today's Prices

Key Points
The surge in memory prices is squeezing margins at Nintendo.
With softening demand leading to a decision to pare back console production, Nintendo lacks pricing elasticity when it needs it the most.
Nintendo is still growing in the current climate, and next year should be better, with highly anticipated titles and a potential window to increase console prices.
This should be a great time for Nintendo (OTC: NTDOY) and its investors. The Super Mario Galaxy Movie is this year's biggest film, with more than $750 million in worldwide ticket sales. The sequel to 2023's blockbuster, made in partnership with Comcast (NASDAQ: CMCSA), opens in Nintendo's home turf of Japan this weekend. It's on track to become the first film to top $1 billion in 2026 by the time it's done with its theatrical run. https://www.boxofficemojo.com/year/world/?ref_=bo_nb_hm_tab
Next month, Comcast's Epic Universe in Florida will celebrate its first year of operation. A top draw at the first major theme park to open in the U.S. in 24 years is Super Nintendo World. It's the third interactive theme-park land to open between the two partners.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Two months from now, Nintendo will celebrate the first year of availability for the Switch 2, the gaming giant's first new console since 2017.
But even with these three spectacular events over the past 12 months, the shares have gone backwards. Nintendo stock has fallen 26% over the past year, plummeting 47% since last summer's high.
Memory lame
How did a potent trio of bullish catalysts end with a bearish twist? The biggest culprit is memory. The Switch 2 console components include DRAM (Dynamic Random Access Memory) and NAND (Flash) storage solutions. Game cartridges require NAND to save gameplay data. And the surge in demand for AI chips has sent the memory market skyward in the past nine months. Retail prices for some products have risen as much as fivefold.
That puts Nintendo between a Joy-Con and a hard place. When it priced its new console at $450 in the spring of last year, it had already delayed U.S. preorders to assess the impact of new tariffs. The company held firm on its initial pricing, concluding that it could offset inflationary pressures on core commodities by raising game and accessory prices. Many expected memory costs to rise, but few figured it would get this bad.
It gets worse for video game stocks, now that spending more money to fuel up our cars leaves less money to fork over for entertainment. Rising geopolitical tensions are also making consumers jittery. The result is that Switch 2 system sales, initially brisk, have slowed. In its first holiday season on the market, the Switch 2 undersold its 2017 predecessor by more than a third in the U.S. market.
Things have softened to the point that Nintendo is paring back Switch 2 production for the current quarter from 6 million units to 4 million. With component costs surging, the obvious response would be to pass the increase on to gamers, but that would destroy the already softening demand for the Switch 2. Nintendo is going to have to eat the margin squeeze.
Making matters worse, despite the recent success of last month's Pokémon Pokopia game, the more anticipated titles aren't expected until next year. Nintendo doesn't have a clear window to pass along its rising costs until 2027.
Instead of a strong sophomore season for the new platform, analysts see a mere 6% increase in earnings and a 9% improvement in revenue for Nintendo's fiscal 2027, which kicked off at the start of this month. Even if memory prices cool down, they're unlikely to get back to where they were a year ago. The AI revolution isn't going away.
However, neither is Nintendo. It has a cash-rich balance sheet, so it can ride out the lull, with revenue and earnings still growing against serious headwinds. Nintendo is losing now, but it's playing to win the long game.
Should you buy stock in Nintendo right now?
Before you buy stock in Nintendo, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nintendo wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $502,837!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,241,433!*
Now, it’s worth noting Stock Advisor’s total average return is 977% — a market-crushing outperformance compared to 200% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of April 23, 2026.
Rick Munarriz has positions in Nintendo. The Motley Fool has positions in and recommends Nintendo. The Motley Fool recommends Comcast. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Nintendo's Got 99 Problems, and a Switch Is One

Key Points
Nintendo may once again have the biggest movie of the year with the Super Mario Galaxy Movie.
It is competing directly with Disney and driving more customers to its popular game franchises.
Nintendo is in a better place than Disney, but Disney's business is just fine economically right now.
Family-friendly movies used to be dominated by Disney (NYSE: DIS). However, there could now be a new entrant in the space that is growing to become a force at the animated box office, and its name is Nintendo (OTC: NTDOY). That's right, the maker of gaming hardware and owner of beloved family-friendly gaming franchises is expanding to the box office in a big way.
It just released its new Mario movie, the second in the series, which is on its way to a box-office performance of over $1 billion and a chance to set the all-time record for an animated film. In an industry long led by Disney, Nintendo appears to be gaining momentum. The Japanese gaming giant has even opened its own theme park in partnership with Universal Studios.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Did Nintendo just say checkmate to Disney? Here's what the encroachment on Disney's turf means for the two stocks, and which is the better buy today.
Box office animation might
Disney generated $6 billion in box-office revenue in 2025. With Nintendo's latest film dubbed The Super Mario Galaxy Movie, Nintendo may reach 20% of that with a single title this year. The second animated film from Nintendo and Illumination Studios could be the biggest movie of 2026, grossing over $400 million at the box office in its first week.
Nintendo plans to release a new movie from its treasure trove of franchises once a year going forward, with a live-action Zelda movie in the works for 2027. This is not nearly the pace of Disney's theatrical releases, but Nintendo could start to crowd out Disney from its box office dominance, which is one of the core pillars of its entertainment ecosystem.
On the other hand, Disney will struggle to compete directly with Nintendo, as it has never had much success in game development beyond licensing its intellectual property to third parties. Alongside theme park expansions in four cities around the world, Nintendo is slowly becoming a direct competitor to Disney.
Reinforcing the gaming entertainment ecosystem
Nintendo is not going to make a huge amount of profit from a yearly movie release compared to its overall business. However, it can serve as a free marketing tool for its gaming hardware and game franchises, such as Mario, Zelda, and Animal Crossing.
The Nintendo Switch 2 was released in June 2025 and has already sold over 17 million units as of the end of 2025, making it one of the fastest-growing gaming devices of all time. Building these ancillary businesses in movies and theme parks can drive more people to buy Nintendo Switch devices for themselves or their kids, which is Nintendo's big moneymaker. A movie ticket may be $20, but a regular gaming customer could be worth $1,000 in revenue if you count hardware, game, and software subscription purchases over multiple years.
Nintendo's net revenue grew 99% year over year last quarter. With the Switch 2 just rounding into form and premier games in development as we speak, Nintendo is set to generate a boatload of profits in the years ahead. Nintendo's earnings peaked at over $5 billion during the pandemic. With price increases, a larger player base, and earnings from new business lines, I expect this figure to be surpassed within a few years, if not next year. At an enterprise value of $50 billion, this is a low price to pay for a high-quality business like Nintendo.
Is Disney toast?
When looking at Disney, it, of course, would like Nintendo not to try to encroach on its dominance at the box office and in theme parks. But that doesn't mean the business is going away. In fact, after a decade of struggles, the company seems to be finally turning the corner with its streaming video transition.
Entertainment revenue was up 7% year over year last quarter, and experiences revenue (theme parks) grew 6% as well. Theme parks are the cash cow for Disney, driving $3.3 billion of the $4.6 billion in total segment operating earnings last quarter. Sports are in a tight spot, barely breaking even, and may face competitive pressure from other streaming giants going forward.
Overall, it looks like Nintendo has more momentum than Disney in expanding its entertainment empire, making it a better stock to buy today. But that does not mean Disney is going away tomorrow, or for a long time.
Should you buy stock in Nintendo right now?
Before you buy stock in Nintendo, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nintendo wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $550,348!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,127,467!*
Now, it’s worth noting Stock Advisor’s total average return is 959% — a market-crushing outperformance compared to 191% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of April 11, 2026.
Brett Schafer has positions in Nintendo. The Motley Fool has positions in and recommends Walt Disney. The Motley Fool recommends Nintendo. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Did Nintendo Just Say Checkmate to Disney?

Key Points
Deflating memory chip prices could be a boon to Nintendo.
The company is on the cusp of an earnings supercycle with the launch of the Nintendo Switch 2.
Shares of Nintendo look cheap for investors focused on the next decade.
The market is beginning to rotate away from the so-called artificial intelligence (AI) winners, as AI labs such as OpenAI scale back their chip spending commitments. Prices for memory chips, in particular, have been soaring in the last few months due to concerns about supply shortages, sending shares of Micron Technology up 282% in the last 12 months alone.
Now, it's 27% off its highs, perhaps indicating that the supply shortage is over. One stock that could benefit from this rotation and a reduced price for memory chips is Nintendo (OTC: NTDOY), which had seen its stock fall over fears of rising input costs. With input cost concerns easing, Nintendo looks like an ultra-cheap stock ready to produce improved earnings growth over the next few years.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Here's why you should consider rotating into Nintendo as a perfect growth stock to own over the next decade.
Declining memory prices eliminate a bear case
Nintendo released its latest gaming hardware, the Switch 2, less than 12 months ago. It is already the fastest-selling console of all time. However, with better processing capabilities, the device uses more memory chips than the original Switch. This could create a significant cost headwind if the average memory chip price rises due to an OpenAI-induced supply shortage.
Investors put two and two together and thought that Nintendo would face major cost headwinds this year, and potentially beyond. While this was likely overstated due to Nintendo's long-term contracts with suppliers and the large inventory build on its balance sheet ahead of launch, it's now looking like a bear case that quickly came and went. Memory chip prices are already declining due to a pullback in commitments from AI players such as OpenAI.
This sets Nintendo up to keep pumping out new consoles, getting it ready for a massive growth cycle and expansion of its entertainment empire in the years ahead.
Growing users and an expanding entertainment empire
With these cost concerns behind them, Nintendo can focus on what matters: Selling more Switch consoles and games. It has sold over 17 million hardware units through the first nine months of the fiscal year that ends in March, leading to 99% revenue growth compared to the year prior.
In the years ahead, it will need to deliver high-quality games to customers to turn these hardware sales into profits. It has begun to do so already. The recent Pokémon Pokopia title is turning into a surprise hit, with 2.2 million copies sold within four days.
Over the next decade, Nintendo has plans to greatly expand its entertainment ambitions beyond just gaming. This includes a new Super Mario movie that has just come out, along with four theme parks opening soon around the globe. These will not just be profit drivers on their own, but should build more fans for the highly profitable gaming segment.
Despite all this growth potential, Nintendo's stock is still down 43% from its highs. This makes it a great stock to buy and hold for the next decade.
Should you buy stock in Nintendo right now?
Before you buy stock in Nintendo, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nintendo wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $518,530!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,069,165!*
Now, it’s worth noting Stock Advisor’s total average return is 915% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of April 2, 2026.
Brett Schafer has positions in Nintendo. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool recommends Nintendo. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Great Rotation Is Creating a Once-in-a-Decade Buying Opportunity for This Growth Stock

Key Points
Wednesday's premiere of "The Super Mario Galaxy Movie" comes at a time when Nintendo can use a boost.
Despite revenue roughly doubling for Nintendo in fiscal 2026, reports of Switch 2 production costs suggest a weak near-term outlook.
Rising memory prices and an iffy global economy aren't helping Nintendo's chances.
Investing in Nintendo (OTC: NTDOY) has been more Rainbow Bridge than Rainbow Road these days. Shares of the Japanese gaming giant have plummeted 43% since hitting an all-time high last summer. A surge in memory prices, along with lukewarm sales for the new Switch 2 console that hit the market last year, have weighed on the video game pioneer.
Thankfully, a new catalyst is being projected on the silver screen this week. The Super Mario Galaxy Movie premiered on Wednesday, giving Nintendo a great opportunity to reignite consumer excitement for the franchise. Another blockbuster would also generate a healthy infusion of incremental revenue for Nintendo and its studio partner Comcast (NASDAQ: CMCSA).
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Plumb and plumber
Let's get the bad news out of the way. Critics aren't exactly warming up to the movie. Just 44% of the pro reviewers polled by critic aggregator hub Rotten Tomatoes are recommending the movie. The good news is that it probably doesn't matter.
The first animated theatrical feature -- The Super Mario Bros. Movie -- hit your local multiplex three years ago with an equally unimpressive critic score of 59%. The audience score for the first film would clock in with a 95% approval rating. Fans of the franchise are going to look past the poor scores from the critics community. Super Mario has multi-generational appeal, and the new film introduces a couple of popular characters that weren't featured in the first installment.
The 2023 movie grossed $1.36 billion in worldwide ticket sales. Only Barbie -- with $1.45 billion at the box office -- fared better. Nintendo and Comcast stock can use a boost for their languishing market activity.
Looking for cheat codes
Nintendo was in a better place at the end of March last year. There were a couple of catalysts waiting to boost its prospects and profile. The Switch 2 -- Nintendo's first new console to hit the market in eight years -- would be available in early June. Comcast would be opening the third Super Nintendo World -- this time at the brand-new Epic Universe theme park in Orlando -- in late May.
It didn't take long for the wheels to start coming off the Mario Kart. April 2 last year was Liberation Day, with the White House announcing new tariffs. Nintendo would call off U.S. presales that were initially set to start a week later, giving it time to assess pricing implications. The console would still hit the market at the initial price, but Nintendo reserved the right to tweak the prices of games and accessories to help offset the new tariffs.
The Epic Universe theme park would open to initial jaw-dropping reviews until the crowds arrived. Long lines and unreliable key attractions have made the gated attraction the worst-rated major area theme park on TripAdvisor and Yelp.
Still finding a way to win
The surge in memory prices has been challenging for video game stocks. Nintendo is being hit particularly hard, given not just the console's internal memory but also the unique flash memory on the actual game cartridges. Nintendo recently announced that physical games may now be priced differently than digital downloads.
The initial demand for the Switch 2 was brisk despite the initial tariff hiccups. There's a reason Nintendo stock peaked several weeks after the console's launch. Sentiment has soured in recent months. Just last week, Bloomberg reported that Nintendo would be slashing its production of new consoles. It will now produce just 4 million consoles in the new quarter, down from 6 million.
Is the new system not resonating with players, or is it just a matter of inflationary and economic concerns weighing on the global audience? Analysts still see Nintendo's revenue doubling in the fiscal year 2026 that ended earlier this week, but they're now modeling just 9% top-line growth for the year ahead. Wall Street pros are also backing off from the margin expansion Nintendo often sees in the second year of a new console, as hardware sales shift to higher-margin software and accessories. Analysts now see a modest 10% improvement in earnings per share in fiscal 2027.
It's against this dicey backdrop, after a year of bad timing and global misfortune, that The Super Mario Galaxy Movie is coming out at just the right time. Give Nintendo fans -- and us Nintendo investors, too -- a break from reality. A hit film, fun core memories, and even the gaming giant's promising new Pokémon Pokopia release might be just what Nintendo needs to turn sentiment (and its share price) around.
Should you buy stock in Nintendo right now?
Before you buy stock in Nintendo, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nintendo wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $518,530!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,069,165!*
Now, it’s worth noting Stock Advisor’s total average return is 915% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of April 1, 2026.
Rick Munarriz has positions in Nintendo. The Motley Fool recommends Comcast and Nintendo. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Can Super Mario Save Nintendo Stock, Again?

Key Points
GameStop's posted strong earnings growth in the fourth quarter.
The gaming retail business has become far less central to GameStop's stock performance.
Investors are waiting to see what acquisition moves CEO Ryan Cohen will make.
GameStop (NYSE: GME) posted its results for the fiscal 2025 fourth quarter (ended Jan. 31) after the market closed on March 24. The company posted non-GAAP (adjusted) profit of $0.49 per share, representing an impressive step up from the adjusted per-share profit of $0.30 it posted in the prior-year period.
Meanwhile, GameStop's revenue came in at $1.1 billion for the quarter -- down 14.1% year over year. While the retailer's stock closed out the day after its earnings report up roughly 1% thanks in large part to bullish momentum for the broader market, its stock is down roughly 11% from its 2026 peak. Should investors treat the discount as a buying opportunity amid the recent sales decline?
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Should investors buy GameStop stock even though sales are sinking?
Given recent trends affecting the video game industry, GameStop's double-digit sales revenue in the fourth quarter wasn't particularly shocking. Relatively underwhelming sales performance for gaming consoles from Sony, Microsoft, and Nintendo has tamped down overall industry revenue, and last year's fourth quarter wasn't particularly heavy on big software releases.
Adding to pressures for GameStop, players have continued to shift their purchasing habits toward digital downloads rather than physical copies of games bought in stores. PCs and handheld platforms, including Valve's Steam Deck, have also been increasing in popularity, and this trend has had the effect of weakening demand for the console hardware and software that are GameStop's lifeblood.
Despite the substantial sales decline, the company's efficiency initiatives and investments allowed it to post substantial earnings growth in the period. Adjusted earnings per share were up 63% year over year. In light of the big sales decline, the company's Q4 profit actually looks very encouraging. It also underscores a major change in how investors should think of GameStop as a company and as a stock.
GameStop closed out last year's fiscal fourth quarter with $9 billion in cash and equivalents -- up from $4.8 billion at the end of the previous year. While the sales decline certainly isn't a bullish development, the story surrounding GameStop stock has become largely divorced from the performance of its video game retail business. Barring an unforeseen and dramatic turnaround, continued gains for digital distribution over physical retail suggest that the company will continue to see its gaming retail revenue decline over the long term.
With GameStop valued at approximately $10.3 billion, the real question surrounding the stock is what exactly the company will do with its $9 billion cash position. During the the height of the meme stock mania surrounding GameStop, the company smartly moved to sell new shares to improve its financial position. The stock sales allowed the company to wipe out debt and build a war chest that CEO Ryan Cohen and his team can use for acquisitions, investments, and other initiatives to transform the business.
It now makes more sense to think of GameStop as a holding company than as a video game retailer when assessing potential valuation moves for the stock. Whether to invest in GameStop stock should come down to the level of faith you have in Cohen and his ability to further his transformation strategy, not to recent sales trends for the gaming retail business.
Should you buy stock in GameStop right now?
Before you buy stock in GameStop, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and GameStop wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $501,381!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,012,581!*
Now, it’s worth noting Stock Advisor’s total average return is 880% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 31, 2026.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends Nintendo. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

GameStop Revenue Is Down. Should Investors Consider Buying the Famous Meme Stock on the Dip?

Rule Breaker Investing: 2026 March Market Cap Game Semifinals

Key Points
Even though the market is close to its highs, many stocks are in severe drawdowns.
Nintendo looks cheap and has a long runway to grow its gamer base in the next decade.
MercadoLibre has an aggressive expansion plan in Latin America.
On its face, the stock market looks to be humming along wonderfully. Despite geopolitical turmoil, the S&P 500 index is near all-time highs, driven by gains in artificial intelligence (AI) stocks. But under the hood, there is plenty of pain. From software companies to carmakers to cannabis producers to consumer lenders, many stocks outside of the AI boom are experiencing severe drawdowns.
Two stalwart consumer stocks well off their highs are MercadoLibre (NASDAQ: MELI) and Nintendo (OTC: NTDOY). These drawdowns have created once-in-a-decade buying opportunities for both, making them fantastic choices for long-term investors today. Here's why you should consider buying shares of both companies for your portfolio right now.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Building on a family friendly gaming empire
Last year, Nintendo released a new gaming device called the Switch 2. It's one of the fastest-selling consoles in history, already selling over 17 million units through the first three quarters of Nintendo's fiscal year, which ends in March.
Investors have soured on Nintendo stock in the interim due to a narrative of a lackluster game lineup and rising memory chip prices, which will hurt the company's input costs for gaming hardware. While it has no control over what memory chips will do, the idea that Nintendo has no games coming for the Switch 2 is misguided.
Nintendo has greatly increased its product development spending on gaming software, including games and its online subscription services. Recently, it launched a new hit called Pokémon Pokopia, which sold 2.2 million units in the first few days of release, putting it on track to become a major profit driver over the next few years as more and more gamers upgrade to the Switch 2.
What's more, Nintendo has greatly expanded its ambitions beyond just gaming into other forms of entertainment. The second Super Mario Bros. Movie is coming out soon, and should do well at the box office. The company also has theme parks and Nintendo stores around the globe, which it hopes will drive more fans to pick up its gaming hardware.
Right now, the Japanese company's U.S.-listed stock is down 36% from its all-time high, even after a recent boost from initial sales of the latest Pokémon game. As a business with increasing momentum and a slate of games across its beloved franchises planned for the next few years -- even if they aren't publicly announced as of yet -- Nintendo looks like a home-run opportunity for investors.
Modernizing commerce in Latin America
Halfway around the world, MercadoLibre operates a vast e-commerce and consumer finance platform across Latin American markets, including Brazil, Mexico, and Argentina.
MercadoLibre's stock has fallen because of management's continued aggressive push to lower consumer costs and reinvest in growth, which is temporarily hurting its profit margins. Operating margin was 11% over the last 12 months, down from a peak of 16% a few years ago.
While investors are right to be concerned about margins, MercadoLibre is seeing the fruits of its aggressive investments in revenue growth. In constant currency, revenue grew 37% in Brazil, 41% in Mexico, and 77% in Argentina last quarter. Financial technology revenue for its MercadoPago subsidiary grew 61%, making it one of the fastest-growing digital finance businesses in the world.
As Latin American markets transition to online shopping and mobile banking, MercadoLibre's revenue will continue to compound at ever-higher levels. Today, you can buy the stock at a price-to-earnings (P/E) ratio of 42. That may seem expensive, but profit margins have been temporarily compressed to help fund its expansion plans.
Over the long term, this revenue growth and a return to profit-margin expansion will help the stock perform well. MercadoLibre currently has a market cap of $85 billion. If revenue can grow from $29 billion today to $60 billion within a few years, with a 15% profit margin, that would yield $9 billion in annual earnings, for a P/E ratio of under 10 based on today's price.
This growth and profitability potential make MercadoLibre stock a can't-miss opportunity right now.
Should you buy stock in MercadoLibre right now?
Before you buy stock in MercadoLibre, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and MercadoLibre wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $510,710!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,949!*
Now, it’s worth noting Stock Advisor’s total average return is 927% — a market-crushing outperformance compared to 186% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 19, 2026.
Brett Schafer has positions in Nintendo. The Motley Fool has positions in and recommends MercadoLibre. The Motley Fool recommends Nintendo. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Top 2 Once-in-a-Decade Consumer Picks for Long-Term Investors

Key Points
Tesla's growth has stalled in recent years.
Remitly is a fast-growing financial services provider that is trading at a low price.
Investors are severely discounting Nintendo's growth prospects following the launch of the Switch 2.
Tesla (NASDAQ: TSLA) was the quintessential hypergrowth stock for much of the last decade or more. But recently, it has entered a period of stagnancy. Its overall revenues have been flat to down since the end of 2023, and its operating income has slumped by more than half in the last few years.
Global unit sales volumes for its electric vehicles have stopped growing. At the same time, the company is trying to pivot its focus to autonomous vehicles and humanoid robots, but has struggled to gain much traction in either space. It may be many years before those new business lines have a true impact on Tesla's bottom line.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
With this in mind -- and with Tesla's $1 trillion market cap as of this writing -- investors may be smart to avoid buying the stock right now. Here are two other potential millionaire-maker stocks you may want to consider adding to your portfolio instead.
An opportunity in global money transfers
Remitly Global (NASDAQ: RELY) has grown impressively over the last few years. Through its mobile application, lower fees, and a better customer experience than is offered by rival services, it has begun to gain market share within the remittance space, which covers international money transfers.
Last quarter, its active customers grew 21% year over year to 8.9 million, revenue grew 25% to $420 million, and the business generated positive net income. Over the next few years, management expects total revenue to about double to $3 billion, with $600 million in adjusted EBTIDA (earnings before interest, taxes, depreciation, and amortization). That level of expected earnings makes its current market cap of $2.85 billion look mighty cheap.
Some investors may shy away from Remitly because of the apparent threat that stablecoins pose to its business model, as, in principle, these cryptocurrencies allow people to more easily send money across borders freely. However, this runs into a speed bump when you have to convert stablecoins into local currencies, a process that always incurs costs. Investors are also wary of how the immigration crackdown in the United States will impact the market for cross-border remittances. The numbers so far don't show that as a cause for concern, however: Remitly's 2025 financials show no impact from stricter U.S. border and immigration policies. Moreover, there are still millions of immigrants in countries around the world who want to send money back home to their families, and that is not going to change anytime soon.
Given Remitly's market cap below $3 billion and its expectations to generate over $500 million in adjusted earnings a few years from now, investors would be smart to buy the stock today and hold it for the long haul. It might just make you a lot of money.
A misunderstood entertainment giant
Another stock with a better setup than Tesla at the moment is Nintendo (OTC: NTDOY). The entertainment company that has dominated family-friendly video games for decades just released a new device, the Nintendo Switch 2, that is selling faster than the original Switch did.
Total sales are up by close to 100% year over year through the first three quarters of its fiscal 2026, which ends in March. However, the stock is down due to rising computer chip prices and a lack of flagship video game titles for the Switch 2 so far.
It is unclear how long these high chip prices will last, but those make up only a small part of Nintendo's input costs, and they will eventually subside. On the games front, Nintendo is notoriously patient with its release schedule, but it has increased its total investment in game development in recent years, which will eventually lead to more flagship titles. There are likely more Mario, Animal Crossing, and Pokémon titles in development right now.
On top of games, Nintendo is releasing the sequel to its animated Mario Movie in April. The original did over $1 billion at the box office. Combined with its new theme parks around the world, Nintendo has many more ways to interact with its fans than it did a decade ago, which should lead to higher game sales and greater profits.
Today, Nintendo's market cap is $62 billion, but because of the huge amount of cash on its balance sheet, the company's enterprise value is well below $50 billion. As the Switch 2's player base continues to grow, annual earnings should reach well over $5 billion, if not significantly higher, within a few years. This makes Nintendo stock a bargain buy for investors looking to capitalize on the growth of the Switch 2.
Should you buy stock in Remitly Global right now?
Before you buy stock in Remitly Global, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Remitly Global wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $429,385!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,165,045!*
Now, it’s worth noting Stock Advisor’s total average return is 913% — a market-crushing outperformance compared to 196% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of February 13, 2026.
Brett Schafer has positions in Nintendo and Remitly Global. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends Nintendo. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	Jun 19	Jun 20	Jun 21	Jun 22	Dec 22	TTM	Median
ROE	3.48	12.96	16.44	19.74	—	19.74	13.26
ROA	2.94	10.58	13.21	15.74	—	15.74	5.10
Quick Ratio	4.78	3.80	3.79	3.57	3.64	3.64	0.92
Current Ratio	5.38	4.05	4.14	4.09	4.01	4.01	1.15

Indicator	Jun 19	Jun 20	Jun 21	Jun 22	Dec 22	TTM	Median
Net Profit Margin	7.80	20.61	24.17	28.44	—	28.44	9.98
Operating Margin	12.39	25.84	31.63	34.01	—	34.01	14.37
Gross Margin	47.06	52.01	55.91	57.87	—	57.87	55.30
Return on tangible equity	3.51	13.09	16.60	19.92	—	19.92	26.67

Indicator	Jun 19	Jun 20	Jun 21	Jun 22	Dec 22	TTM	Median
Revenue	1.57	3.33	2.94	2.37	—	2.37	83.00M
Gross Profit	0.76	1.97	1.76	1.42	—	1.42	—
EBITDA	0.25	1.35	1.09	0.78	—	0.78	—

NINTENDO CO LTD UNSP/ADR

Recent quarterly and TTM performance

Valuation

Debts

Efficiency

Other ratios

Revenue