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
To find big stock winners, you need to look for undervalued stocks not popular today.
Nintendo is a hidden gem in plain sight with a profit inflection coming in 2026.
Crocs is trading at a dirt-cheap price and headed for a turnaround next year.
If you want to own stocks that are massive winners, you most likely need to buy before they become household names. That means buying with a contrarian bent, not after shares have already gone up by 10x in just a few years. Buying Nvidia and Palantir Technologies in 2023 was smart, but you can't necessarily say the same thing about these stocks after rising 1,000% in just a few years' time.
Today, investors would do well to avoid overvalued artificial intelligence (AI) stocks that have already catapulted higher. Search instead for underfollowed and undervalued stocks that could become the future Nvidias and Palantirs of the stock market in 2026 and beyond.
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Nintendo (OTC: NTDOY) and Crocs (NASDAQ: CROX) are two stocks I am buying hand over fist before they could soar higher in 2026. Here's why these are great buys for investors as we head to the end of the year.
Nintendo's profit inflection
Many people know of the Nintendo gaming brand, but few think to invest in this Japanese stock. The company dominates family-friendly gaming entertainment with its Mario, Zelda, Animal Crossing, Pokémon, and many other franchises that are beloved by tens of millions of people around the globe.
Nintendo got its mojo back over the last decade with the hybrid gaming console called the Nintendo Switch. This device allows players to game with a handheld device that can also connect to a TV for at-home gaming, a revolution in the gaming industry that led to the Switch selling over 150 million units since its release in 2017.
Now, Nintendo has come out with the next generation of the device called the Nintendo Switch 2. Through just the first few weeks after launch, the new device sold close to 6 million units, showing how popular Nintendo is with its core gaming customers. Over the holiday quarter and this fiscal year ending in March of 2026, analysts are expecting Nintendo to sell over 20 million and perhaps 25 million Switch 2 units.
What does all this mean for Nintendo's stock? Well, if Nintendo keeps getting the Switch 2 into more customers' hands, those customers will buy Nintendo games and software packages. These games are the leading profit driver for Nintendo, meaning the more hardware it sells, the more profit it will make. Over the last 12 months, Nintendo has generated just $2 billion in net income.
Back at the peak of the first Switch, Nintendo was generating $4 billion in annual net earnings. With a higher selling price for the Switch 2 and its associated games, along with other monetization initiatives like movies and theme parks, Nintendo is set up to greatly surpass these earnings figures over the next few fiscal years, especially if the Switch 2 keeps selling like gangbusters.
All this makes Nintendo a perfect stock for investors to buy heading into 2026.
A Crocs turnaround built on international growth
The shoes may be deemed "ugly" to some, but Crocs has built its easy-to-wear plastic sandals into a $4 billion business over the last two decades.
Today, the stock is trading at a cheap enterprise value-to-EBIT (earnings before interest and taxes) ratio of just 6. It is important to use enterprise value when analyzing Crocs stock because of the debt on its balance sheet, and it is also better to use EBIT instead of bottom-line net income because of some non-cash goodwill charges over the last 12 months.
Crocs' stock has struggled in the last few years for two reasons. First, it made an ill-timed and overpriced acquisition of the HeyDude shoe brand, which has seen declining revenue over the last few years, and with poor profit margins. Brand revenue declined 4.2% year over year in constant currency last quarter.
Second, the Crocs brand has begun to slow down in North America. Total Crocs revenue was up 4.2% year over year on a constant currency basis last quarter, but that was mainly due to international growth of 16.4%.
Even though Crocs has faced headwinds, the stock is mighty cheap right now while the business is doing swimmingly internationally. Revenue growth in China and other markets has been outstanding, with international revenue now higher than sales in North America. Plus, Crocs management is buying back a lot of stock, with shares outstanding down 17% cumulatively in the last five years.
Crocs' brand should begin to stabilize in North America, and the struggles at HeyDude are already well priced into this stock. Buy Crocs at a cheap earnings ratio of 6, and you will be well-rewarded in 2026.
Should you invest $1,000 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 $590,287!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,173,807!*
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*Stock Advisor returns as of October 27, 2025
Brett Schafer has positions in Crocs and Nintendo. The Motley Fool has positions in and recommends Nvidia and Palantir Technologies. The Motley Fool recommends Crocs 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.

2 Stocks to Buy Hand Over Fist Before the Nasdaq Soars Higher in 2026

Key Points
Although Meta Platforms dominates the VR headset niche, overall sales have been shrinking.
The company's artificial intelligence (AI)-enhanced glasses have been growing in popularity.
Apple is shifting focus from headsets to glasses, which could dethrone Meta.
Meta Platforms (NASDAQ: META) is the king of virtual reality (VR) right now.
Between its Quest VR headset and its new line of Ray-Ban artificial intelligence (AI) glasses, Meta's wearables not only dominate the market -- in some cases, they are the market.
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But last week, a new report emerged that Apple (NASDAQ: AAPL) might be planning to bring Meta's dominance in wearables to an end. Here's why this could be very bad for Meta.
Headsets are so 2023
The Meta Quest (formerly Oculus Quest) line of headsets is by far the top-selling VR headset, and it's not even close. The Quest dominates with 77% of market share. Its nearest competitors, Sony's PlayStation VR, Apple's Vision Pro, and Chinese entrant PICO, each have market shares in the single digits.
In spite of Meta's headset dominance, though, the Reality Labs unit -- which makes the Quest -- has been losing money as Meta pours resources into it as part of its long-term vision for building a metaverse. In the company's most recent quarter, Reality Labs brought in just $370 million in revenue (0.8% of Meta's total $47.5 billion in quarterly revenue), but reported a $4.5 billion net loss.
Meanwhile, VR headsets just aren't catching on the way Meta hoped. Although the company hasn't provided specific sales figures for the Quest 3 and Quest 3S, estimates indicate that right now, about two years after the Quest 3's release, somewhere between 1 million to 2 million are currently in use. By contrast, Nintendo's (OTC: NTDOY) Switch 2 was released on June 5 of this year, and by June 30 had already sold 5.8 million units.
Still, that doesn't mean that wearables are dead. What about replacing that clunky headset with a simple pair of glasses?
The specs of the specs
The first-ever foray into eyeglasses as wearable technology, Alphabet's Google Glass, was a total disaster. With its front-mounted camera, anyone the wearer looked at worried they were unknowingly being filmed. Alphabet began selling a prototype in April 2014 and discontinued it just nine months later over concerns it could violate privacy laws.
However, we seem to have turned a corner from the time when Google Glass was deemed "creepy" and "invasive." Although Meta's AI glasses, like Google Glass, look like chunky plastic-framed glasses with front-mounted cameras, and although they have a $400-plus price tag (not including prescription lenses), sales have been rapidly expanding.
This could be a much larger and more promising market than the one for VR headsets, given that eyeglass wearers are used to having frames on their faces, and everyone is used to seeing people walk around with glasses on, unlike a clunky VR headset. Plus, new prescription glasses cost hundreds of dollars anyway. Why not shell out a few extra for AI enhancement?
Meta has a big early lead with this technology. But even that might not withstand a challenge from Apple.
Why Meta should worry
Apple's incredibly advanced VR/augmented reality (AR) Vision Pro headset drew rave reviews when it came out in 2024, although its $3,499 price tag meant it was never destined for mass-market sales. So, given the apparent growing market for AI glasses and the shrinking market for VR headsets, it's no surprise that Apple would follow Meta into the wearables field. In fact, over the past year, a number of industry watchers have questioned why Apple wasn't already in the smart eyeglasses market to begin with.
Not only does Apple clearly have some expertise with the technology, as evidenced by the Vision Pro, it has a lot of things Meta doesn't have: robust supply chains, existing manufacturing partners, and decades of experience mass-producing and mass-marketing technological devices, including wearables like the Apple Watch.
Furthermore, Apple has storefronts across the country and around the world where it can display wearable products and demonstrate how they work. Meta doesn't, and has to rely on Ray-Ban, LensCrafters, and Best Buy stores to demo its latest wearables.
Millions of people around the world own an iPhone -- an AI-ready device that could easily be configured to control and power AI glasses from Apple. That's not true for Meta, and the lack of integration with phone apps -- even Meta's own apps like Facebook and Instagram -- is one of the big complaints about the new Meta Ray-Ban Display.
True, if Apple scraps its Vision Pro headset, Meta loses a competitor in the VR headset space, but that's where its products are already dominant. The potential for Apple to disrupt Meta's monopoly in the fast-growing AI glasses market is much more concerning. Worse, if Apple eats Meta's lunch in the AI glasses market, Meta doesn't really have an apparent fallback product for its metaverse plans. That's what's probably keeping Meta CEO Mark Zuckerberg up at night.
Should you invest $1,000 in Meta Platforms right now?
Before you buy stock in Meta Platforms, 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 Meta Platforms 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 $657,979!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,122,746!*
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*Stock Advisor returns as of October 7, 2025
John Bromels has positions in Alphabet, Apple, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Apple, Best Buy, and Meta Platforms. 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.

Meta Just Got Some Powerful New Competition for AI-Enhanced Wearables

In this video, Motley Fool contributor Jason Hall breaks down the things investors need to know about the deal for Electronic Arts (NASDAQ: EA), whether selling now makes sense, and a top stock idea with your proceeds among Nintendo (OTC: NTDOY), Take Two Interactive (NASDAQ: TTWO), and Sea Limited (NYSE: SE).
*Stock prices used were from the afternoon of Sept. 29, 2025. The video was published on Sept. 29, 2025.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Should you invest $1,000 in Electronic Arts right now?
Before you buy stock in Electronic Arts, 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 Electronic Arts 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 $652,872!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,092,280!*
Now, it’s worth noting Stock Advisor’s total average return is 1,062% — a market-crushing outperformance compared to 189% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of September 29, 2025
Jason Hall has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Sea Limited and Take-Two Interactive Software. The Motley Fool recommends Electronic Arts and Nintendo. The Motley Fool has a disclosure policy.Jason Hall is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Time to Sell EA on Buyout Deal? Top Stocks to Buy if You Do.

Microsoft's MSFT gaming division is emerging as a vital pillar of its broader strategy, powered by the growing strength of the Xbox ecosystem. In the fourth quarter of fiscal 2025, gaming arm delivered a 10% year-over-year revenue increase, with Xbox content and services climbing 13%, driven by strong first-party content and Game Pass momentum. Game Pass reached a record of nearly $5 billion in annual revenues, while the company’s gaming platforms surpassed 500 million monthly active users, highlighting the ecosystem’s scale.
Growth has been driven by blockbuster titles like Call of Duty: Black Ops 6, which attracted 50 million players and over 2 billion hours of engagement. The Activision Blizzard acquisition strengthened Microsoft’s content portfolio, giving Game Pass a steady pipeline of high-demand franchises. Additionally, multi-platform releases, including Xbox titles on PlayStation, have positioned the company as the top publisher on both platforms.
Microsoft is also innovating with new monetization paths, from partnerships that bring Xbox Cloud Gaming into vehicles to developing fresh hardware like the Xbox Ally handheld. With nearly 40 new games in development, including highly anticipated releases such as Borderlands 4, Dying Light: The Beast and Trasmoz Legends, the company is reinforcing its ability to sustain long-term engagement and growth across the Xbox ecosystem.
However, headwinds are hard to ignore. Hardware revenues declined, and management guided to mid- to high-single-digit gaming declines for the first quarter of fiscal 2026. Studio closures also raise questions about content depth. Despite near-term pressures, Microsoft’s vast user base, powerful IP and recurring subscription revenues give the Xbox ecosystem a resilient foundation. The Zacks model projects gaming revenues to grow 2.1% year over year in fiscal 2026 and accelerate 15% in fiscal 2027 — supporting sustained long-term growth.
MSFT’s Gaming Platform Competitors
In the gaming arena, Microsoft faces stiff competition from major players like Sony SONY and Nintendo NTDOY.
Sony’s PlayStation platform stands as Microsoft’s closest rival, excelling in high-fidelity gaming and innovative hardware. With Helldivers 2 breaking into Xbox and a rumored PS5 handheld in development, Sony is expanding beyond exclusivity, directly challenging Microsoft’s subscription-led strategy and portable gaming ambitions in a rapidly evolving industry.
Nintendo continues to occupy a distinct niche from Microsoft by focusing on unique, gameplay-first exclusives and hybrid portability rather than raw hardware power. The upcoming Switch 2, with AI-enhanced graphics, competitive pricing and strong demand forecasts, reinforces Nintendo’s strength in delivering cost-effective innovation — challenging Microsoft’s ability to capture mass-market gamers with its high-performance Xbox strategy.
MSFT’s Share Price Performance, Valuation & Estimates
MSFT shares have appreciated 18.8% in the year-to-date period, outperforming the Zacks Computer – Software industry and the Zacks Computer and Technology sector’s growth of 15.3% and 16%, respectively.
MSFT’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, MSFT stock is currently trading at a forward 12-month Price/Sales ratio of 11.22X compared with the industry’s 8.31X. MSFT has a Value Score of D.
MSFT’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MSFT’s fiscal 2026 earnings is pegged at $15.35 per share, reflecting upward revisions of 3 cents over the past 30 days. The estimate indicates 12.54% year-over-year growth.
Image Source: Zacks Investment Research
Microsoft currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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7 Best Stocks for the Next 30 Days
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Microsoft's Gaming Revenue Growth: Can the Xbox Ecosystem Sustain It?

Key Points
President Trump announced 15% tariffs on Japan last week.
Nintendo responded by warning of a price increase on its Nintendo Switch products Friday.
On Monday, the price change took effect.
Nintendo (OTC: NTDOY) stock jumped in Monday trading, rising 7.1% through 11:20 a.m. ET in response to a press release the Japanese video game company put out just before the weekend began.
Pricing for the company's various Nintendo Switch gaming consoles and related products will change in the United States "based on market conditions," said the company, "effective August 3, 2025." And by "market conditions" it seems the company means President Trump's tariffs on Japanese imports.
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What's changing at Nintendo
Nintendo clarified that Nintendo Switch 2 prices and prices for physical and digital Switch and Switch 2 games "will remain unchanged at this time," although the company gave no guarantee that prices won't change in the future in response to U.S. tariff policy on Japanese imports.
What may change are prices for:
Nintendo Switch
Nintendo Switch (OLED Model)
Nintendo Switch Lite
Select Nintendo Switch and Switch 2 accessories
Is this good or bad news for Nintendo?
When we compare current product prices to those from Monday of last week, the effect becomes clear. A Nintendo Switch Lite unit that cost $199.99 a week ago now costs $229.99 (up 15%). The OLED Model, which cost $349.99 last week, now costs $399.99 (up a bit more than 14%). The ordinary Nintendo Switch, which cost $299.99 last week, costs $339.99 today (up 13%).
All these price changes resemble the 15% tariff on Japanese imports announced by President Trump July 31 just a bit too closely for it to be a coincidence. It seems pretty clear that Nintendo is passing the cost of higher tariffs directly to consumers, preserving its profit margin in the process.
This might hurt sales a bit, but so long as profit margins remain intact, investors seem happy today.
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On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
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Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
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Rich Smith has no position in any of the stocks mentioned. 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.

Why Nintendo Stock Popped on Monday

Motley Fool Co-Founder David Gardner Reviews Stock Picks

Wall Street can be very slow to give companies their due reward with a higher stock price, and that's to the advantage of an investor who keeps a long-term mindset. If you understand the opportunities ahead for a business, you're in a position to profit off the stock.
Here are two solid companies experiencing growing demand for their services that could spell outstanding returns for patient investors.
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1. Carnival
Demand trends and the long-term outlook for the leading cruise operator look solid. Carnival (NYSE: CCL) continues to report strong financial results in 2025, showing that it is benefiting from higher ticket prices and robust demand. Carnival reported another record quarter, with fiscal Q2 revenue reaching $6.3 billion. This brings its trailing-12-month revenue to $25.4 billion, which surpasses its pre-pandemic level of $20.8 billion in fiscal 2019.
The stock price has more than doubled over the past three years, but Carnival could support more shareholder returns through improving margins. The shares currently trade at a forward price-to-earnings multiple of just 12.5, which is very cheap considering the strong growth it is reporting.
Carnival's adjusted net income exceeded the company's guidance, reaching $470 million, or $0.35 per share. Strong pricing power and lower costs are expected to push adjusted net income to $2.7 billion for the full year, up from last year's $1.9 billion.
Importantly, the upcoming launch of Celebration Key as a cruise destination point could drive profitable growth for the business that isn't reflected in the stock's modest earnings multiple. This exclusive destination in the Bahamas is strategically located close to the company's ports and is intended to lower fuel costs and generate healthy profits. Key attractions like water slides, entertainment, and restaurants should be a guest magnet, driving further upside to ticket prices and margins.
Wall Street is significantly underestimating this opportunity. Carnival is not just a cruise company anymore. Investments in exclusive destinations like Celebration Key can distinguish the Carnival brand and drive attractive returns for shareholders.
2. Nintendo
Nintendo's (OTC: NTDOY) (OTC: NTDO.F) stock has had its ups and downs in recent years, but if you had bought shares at the end of 2016, a few months before the Nintendo Switch launched, your investment would currently be up 338% -- outperforming the 172% return of the S&P 500.
The video game industry is valued at $180 billion and has been growing for 50 years. Nintendo owns some of the most valuable intellectual property with exclusive franchises like Mario Bros and Zelda. Its Switch video game console has sold 152 million units, making it the most successful console in the company's history.
Nintendo Switch 2 just launched and sold more than 3.5 million units in the first four days after the June 5 release, breaking previous records.
Investors should note that consoles are low-margin sales. The real money is made on selling games, which carry higher profit margins. Nintendo forecasts 15 million unit sales for Switch 2 in the current fiscal year ending in March. But it expects to sell more games for Switch 2 than the original Switch sold in the first 10 months after launch.
Investors should expect to see Nintendo's profits decline in the near term, given the higher percentage of sales coming from hardware sales. However, the strong sales of Switch 2 set up a great run of software sales over the next few years, which should fuel strong earnings growth over the next few years.
The average price target among Wall Street analysts is currently $34.90, implying upside of 52% over the current $23 share price. These targets are usually estimates of where analysts believe the stock can trade in the next 12 months or so. With sales expected to double this year, this top gaming stock offers attractive upside potential over the next few years.
Should you invest $1,000 in Carnival Corp. right now?
Before you buy stock in Carnival Corp., 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 Carnival Corp. 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 $704,676!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $950,198!*
Now, it’s worth noting Stock Advisor’s total average return is 1,048% — a market-crushing outperformance compared to 175% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of June 23, 2025
John Ballard has no position in any of the stocks mentioned. The Motley Fool recommends Carnival Corp. 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.

2 Top Stocks That Could Soar in 2025 and Beyond

Roblox (NYSE: RBLX) is one of the surprise breakout stocks of 2025. This top gaming stock has nearly doubled since the beginning of April and recently was sitting close to a 52-week high.
The company has posted more than 20% quarterly revenue growth on a year-over-year basis for seven consecutive quarters. It seems well positioned to keep the momentum going based on the popularity of a new game, Grow a Garden, that is trending on the platform right now.
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Roblox is the best video game stock to hold for the long term. While its run this year has lifted the valuation to expensive-looking multiples of sales and free cash flow, the company's growth prospects make the stock a compelling buy.
Why the stock is soaring in 2025
Roblox has been growing revenue much faster than the big video game companies like Nintendo, Electronic Arts, and Take-Two Interactive. Roblox also has a much different business model than these companies, which explains why it's growing faster.
What makes Roblox such a powerful platform for growth is its user-created content strategy. This is a lower-risk strategy than that of big game publishers like Take-Two, which take on the risk of spending millions of dollars to make a game.
Roblox pays earnings (developer exchange fees) to the creators with the most engaging content. This makes up around a quarter of the company's revenue. This isn't an expense as much as an investment in content production, similar to how Netflix spends billions on content every year and attracts a large audience. Over the last four quarters, Roblox spent $1 billion in developer exchange fees while generating $3.8 billion in revenue.
More content attracts more users. Roblox's daily active users grew 26% year over year to 97.8 million in the first quarter. What's interesting is that the platform is starting to attract older kids. In the first quarter, 62% of daily active users were older than 13, and this percentage has been trending higher in recent years. This broadens Roblox's addressable market and increases its growth opportunity.
A growth machine
The success of Grow a Garden, which currently has more than 2 million players spending time with the game every day, shows why Roblox could be a compelling growth stock to hold for the long term. Its large pool of content creators can release an engaging new experience like this at any time that attracts more players and drives upside to revenue.
Management is targeting more than 20% compound annual growth in revenue through at least 2027. It believes it can capture 10% of the $180 billion annually spent on video games over the long term.
One trend supporting favorable long-term prospects is the video game industry's historical growth with technological advancement. For example, Roblox could benefit from innovation in virtual reality, artificial intelligence, and continued improvement in graphics technology.
Why the stock is a long-term buy
The biggest risk for the stock in 2025 is its high valuation. The stock currently trades at a high price-to-sales ratio of 17.5. Even taking into account its growing free cash flow, the stock trades at a valuation of 76 times trailing free cash flow. At these high multiples, investors should be prepared for a pullback, especially after hitting a milestone $100 share price, which could serve as an excuse for traders on Wall Street to take profits.
Any dip in the share price in the near term is a buying opportunity for long-term investors. Roblox still has other growth catalysts on the horizon, such as digital ads. It just announced a partnership with Alphabet's Google Ads to launch video ad formats on the platform, which bolsters Roblox's opportunity in the $700 billion digital ad market.
Roblox brings together two powerful growth drivers on a single platform -- growing demand for interactive entertainment and social media. Many players like Roblox because they get to socially connect with others while engaging in fun experiences. This dynamic could carry the company a long way.
Should you invest $1,000 in Roblox right now?
Before you buy stock in Roblox, 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 Roblox 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 $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $881,731!*
Now, it’s worth noting Stock Advisor’s total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of June 9, 2025
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Netflix, Roblox, and Take-Two Interactive Software. The Motley Fool recommends Electronic Arts 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.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Should You Buy Roblox Stock After Its Surge to $100?

The latest video game console from Nintendo (OTC: NTDOY) is now out. The Switch 2 is a newer version of the company's original Switch device, and the early indications are that it is a big hit thus far.
With shares of Nintendo already up more than 40% this year (returns as of June 13), could this send this stock to even higher levels in the weeks and months ahead? Here's a closer look at what the early numbers are for the Switch 2, and whether Nintendo's stock is a no-brainer buy at this point.
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Switch 2 hits record sales
The Switch 2 officially launched on June 5. Through just the first four days after its launch, there were more than 3.5 million units sold, making it the fastest-selling Nintendo console. The original Switch device didn't even hit 3 million units sold by the end of its first month.
The new console also hit a record for U.S. sales during its launch week, with more than 1.1 million units sold. For the fiscal year, which ends in March, Nintendo forecasts that it will end up selling 15 million units, and it looks to have a terrific start already. This is particularly impressive given that the new Switch console is priced $150 higher than the original Switch (launched in 2017), and $100 higher than the Switch OLED version (launched in 2021).
Is Nintendo due for a banner year?
Nintendo recently wrapped up a tough fiscal year, which ended on March 31. Its sales fell by more than 30% to 1.2 trillion yen ($8 billion) as hardware sales plummeted more than 31%, with consumers eagerly awaiting the launch of the new Switch 2 console and holding off on new purchases. Profits also fell by 43% to 279 billion yen ($1.9 billion).
However, a strong performance by the Switch 2 could turn those fortunes around. The company is expecting sales for the current fiscal year to top 1.9 trillion yen ($13.1 billion), which would translate into a growth rate of around 63%. It would, however, be just a 14% improvement from fiscal 2024.
Should you buy Nintendo's stock today?
Nintendo's stock has been a raging-hot buy in recent months. The danger, however, is that with such a strong run, it may be difficult for investors to generate strong returns at an inflated price. Currently, Nintendo's stock trades at around 50 times its trailing earnings. Even based on analyst forecasts, it's at a forward price-to-earnings multiple of 46.
Those are high earnings multiples to be paying for Nintendo's stock. While the company has some terrific, iconic brands and intellectual property in its portfolio, its growth may not necessarily be strong enough to justify such a high premium. More than 60% revenue growth this year is impressive, but given the steep drop-off it experienced in the most recent fiscal year, a 14% growth rate over a two-year window looks far less impressive.
Another risk to factor in is a possible slowdown in global economies, especially as tariffs weigh on countries all over the world. While Switch 2 sales were impressive out of the gate, longer-term question marks remain about how well demand will hold up over the entire year, and whether software sales will also be strong.
Nintendo is a great company, but I wouldn't invest in it at its current valuation. A lot would have to go right for the gaming stock to continue rallying much higher than where it is today.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool recommends Nintendo. The Motley Fool has a disclosure policy.
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Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Will the Switch 2 Send Nintendo's Stock to the Next Level?

Nintendo (OTC: NTDOY) stock saw another day of big gains in Wednesday's trading. The company's share price gained 6.1% in the daily session and is now up 56.5% across 2025.
Nintendo's gains today were driven by indications that demand for its recently released Switch 2 gaming console remains quite high. The Switch 2 quickly became the fastest-selling gaming platform in history following its release earlier this month, and the new system is powering a strong rally for Nintendo stock.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Switch 2 continues to push Nintendo stock higher
Nintendo released its Switch 2 platform on June 5, and the new console has gotten off to a fantastic start. The console, which launched at a $449 price point, sold more than 1.1 million units in the U.S. within its first week on store shelves. The performance was good enough to make it the most successful video game platform launch in history.
On a worldwide basis, the Switch 2 managed to sell 3.5 million units in just four days -- a performance that also set a new sales record. Now, new shipments from Nintendo mean that retailers are restocking the red-hot console -- and reports suggest that the platform is continuing to quickly sell out.
What's next for Nintendo?
Nintendo appears to have a big hit on its hands with the Switch 2. Unlike some other console launches, the company did a commendable job ensuring that it had a lot of units produced -- but demand still appears to be significantly exceeding supply at some point. While there is some risk for investors that front-loaded demand for the new console may not provide a great indicator as to the platform's long-term performance outlook, the launch has clearly gone very well.
Should you invest $1,000 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 $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $883,386!*
Now, it’s worth noting Stock Advisor’s total average return is 992% — a market-crushing outperformance compared to 172% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of June 9, 2025
Keith Noonan has no position in any of the stocks mentioned. 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.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Indicator	TTM Median
ROE	19.74 13.09
ROA	15.74 4.72
Quick Ratio	3.64 0.93
Current Ratio	4.01 1.24

Indicator	TTM Median
Net Profit Margin	28.44 9.44
Operating Margin	34.01 14.24
Gross Margin	57.87 54.26
Return on tangible equity	19.92 25.55

Indicator	TTM Median
Revenue	2.37 89.00M
Gross Profit	1.42 —
EBITDA	0.78 —

NINTENDO CO LTD UNSP/ADR

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

Debts

Efficiency

Other ratios

Revenue