Demand has slowed in 2021, with the company predicting 25. 5 million Switch (and Switch Lite) sales for the current fiscal year, which ends in March 2022. This is most likely a significant contributing factor to the stock's 25% decline year to date.

However, Nintendo has some new products and partnerships in the works to coincide with a busy holiday season, which should help the company maintain its profitability. IsACNH Bells possible that Nintendo's stock will experience a turnaround by the end of 2021?

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Animal Crossing New Horizons - NEXT UPDATES in 2021 (Everything We Know)

Nintendo's most recent quarterly update covered the three months ending June 30, which corresponded to the first quarter of fiscal 2022.9% year on year, with operating profit falling 17.3% to 119.8 million yen ($1. Software sales in the prior year totaled 50. 3 million units in the most recent quarter.

The original Switch, a hybrid console and mobile gaming device, actually saw an increase in unit sales of 8.5% year on year. Once again, this demonstrates that there is a consistent demand for Nintendo's primary gaming console throughout the world.

With a strong lineup of games coming out this holiday season and in 2022, including Metroid Dread, Pokémon Legends: Arceus, and Splatoon 3, Nintendo may be able to maintain strong software sales for the foreseeable future. This is the most important input for predicting future operating profit and cash flow.

The new model will have a larger screen, a brighter OLED display (hence the name), and 64 GB of storage.Cheap ACNH Bells  will be released on October 8th, and pre-orders have already sold out at major online retailers such as Amazon, Walmart, and Target. If the Switch OLED sells well this holiday season, Nintendo's financial results will improve significantly over the next few quarters.

Last but not least, Nintendo is collaborating with Comcast's Universal to develop theme parks around the world, and a new Mario film, produced by Illumination Studios, is set to debut in 2022. Even though these two ancillary businesses will not contribute to top- or bottom-line growth for at least a few years, they are excellent opportunities for the company to introduce new people to buy bells animal crossing new horizonss well-known entertainment characters. As a result, more people will be drawn to its highly profitable gaming ecosystem.

1 billion in cash onfree ACNH bellss balance sheet, Nintendo's stock trades at 8.5 timesACNH bellss trailing-12-month operating profit. This appears to be a bargain, especially when you consider the new Switch OLED and games lineup that will be released over the next year, as well as the additional investments that the company is continuing to make.

Management expects operating profit to fall by 22% in the current fiscal year, to $4. This would increase the company's valuation multiple to 10.5. Investors should be aware, however, that Nintendo has a reputation for providing extremely conservative guidance. For example, every year since fiscal 2018, Nintendo has outperformedbells ACNHs operating profit forecast for the following fiscal year. There's no guarantee that the company will do so again in fiscal 2022, but there's a good chance that it will.

And this does not imply that Nintendo stock will soar in the near future. Management takes a long-term approach, andbuying bells animal crossing may be the beginning of the new year before the stock price recovers its losses from 2021. However, as long as the company's key business metrics remain strong, shareholders should be able to sleep soundly at night if they own shares in the company.