Nintendo of America is seeking a refund from the Trump administration after the Supreme Court ruled that the president lacked sweeping authority to impose tariffs under a 1977 emergency powers law. The lawsuit, filed in the U.S. Court of International Trade late last week, seeks an unspecified amount og a refund, plus interest.
Nintendo of America has become the latest company going to court over U.S. tariffs. The videogame maker on Friday (March 6) filed suit against the U.S. government in hopes of recouping the money it paid in tariffs following last month's Supreme Court ruling that declared the levies illegal.
Mario and Luigi are two of the most iconic characters in the Nintendo Co. Ltd. OTCMKTS: NTDOY universe.
Nintendo filed a lawsuit against the U.S. government on Friday over its extraction of tariffs from global businesses. The gaming giant is seeking a refund for any duties it paid due to President Donald Trump's executive orders that invoke the International Emergency Economic Powers Act (IEEPA).
Turtle Beach is positioned for upside following its PDP acquisition and exposure to Nintendo Switch 2 peripherals. TBCH achieved more than $13 million in annual synergy savings, exceeding initial management estimates and accelerating EPS improvement. Gross margin expanded 120 bps YoY to 37.4% in Q3 2025, with FY25 guidance reaffirmed at $350M revenue and $50M adjusted EBITDA.
Nintendo plans an unwinding of strategic shareholdings that would see companies including MUFG Bank and the Bank of Kyoto selling shares of the "Super Mario" maker, according to three sources familiar with the situation.
Nintendo is rated a buy, driven by the Switch 2 launch and robust free cash flow yield above historical levels. Switch 2 sales are pretty strong, with expectations for a long sales tail and significant deferred demand as the game library matures. Major upcoming catalysts include new Mario and Zelda movies, each with the potential to add over 20% to run-rate net profit in their respective years.
Nintendo is upgraded to a Buy after a 40% stock correction restores valuations to historical averages. Switch 2's launch allowed sales to double YoY, with robust margins and a strong cash position backing 25% of market cap. Dividend yield is projected at 3.4% for mid-2027, supported by healthy payout ratios and expected earnings growth through the Switch 2 cycle.
Nintendo is breaking records with Switch 2's unprecedented sales and robust software attach rates, reinforcing its dominant industry position. Despite short-term headwinds from DRAM cost inflation and yen volatility, NTDOY's diversified IP monetization and cost advantages underpin long-term resilience. Switch 2's strong third-party support, blockbuster software pipeline, and upcoming Super Mario Galaxy movie are poised to drive further revenue growth.
Nintendo's (NTDOY) Switch 2 has achieved record hardware adoption while software sales closely track the original Switch's early cycle. FY2026 revenue growth remains strong, supported by reaffirmed guidance for 19 million Switch 2 units and 48 million software units. Gross and operating margins remain compressed due to hardware mix, currency effects, and elevated SG&A during the launch phase.
In the first half of 2025, Nintendo OTCMKTS: NTDOY was not only one of the best-performing consumer discretionary stocks but a market standout as well. It surged 76% in anticipation of the company's long-awaited Switch2 release.
Investors remain concerned about the impact memory costs could have on the sales of Nintendo's gaming consoles. The share drop comes after Nintendo's quarterly revenue missed market estimates, despite an 84% surge from last year.