Nintendo, the IBD Stock Of The Day, surged Wednesday after the video game giant revealed details of a highly anticipated game for its recently launched Switch 2 console.
The Japanese company disclosed gameplay specifics for "Donkey Kong Bananza," the latest in its popular franchise featuring banana-crazed gorilla Donkey Kong. The game is set for release on July 17, exclusively for Switch 2, and will cost $69.99.
The Switch 2 console went on sale on June 5. It sold more than 3.5 million units worldwide in its first four days of release. The console costs $449.99. Meanwhile, the biggest game title at launch was Nintendo's "Mario Kart World."
On the stock market today, Nintendo's U.S. shares broke out of a flat base at a buy point of 22.08, according to IBD MarketSurge charts. Also, the pattern is actually a base on base after its April 24 breakout from a double-bottom base at a buy point of 18.92.
In intraday trading, Nintendo stock notched an all-time high of 22.91. The share gained 6.1% to close at 22.89.
The 5% buy zone for Nintendo's latest breakout goes to 23.18, based on IBD trading guidelines.
Nintendo Stock Rated Buy
On Tuesday, MoffettNathanson analyst Clay Griffin reiterated his buy rating on Nintendo stock. He also raised his price target on the company's Japan-traded shares.
"Switch 2 is off to an incredible start — 3.5 million units sold in the first four days easily bests the 2.74 million Switch units sold in the first month of 2017. But it's the longer-term, platform opportunities that we think will carry the day from a stock performance perspective from here," Griffin said in a client note.
Those platform opportunities include the company's Nintendo Switch Online subscription service, he said.
Along with Roblox, Nintendo stock is one of the top performers in IBD's Computer Software-Gaming industry group. Further, that group ranks No. 16 out of 197 industry groups tracked by IBD.
Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
