The ongoing popularity of Pokemon GO has sent shares of Japan's Nintendo Co soaring a whopping 127 per cent since July 6, the day the mobile game was launched.
On July 6, the stock quoted 14380.0 yen and surged all the way up to 32630.0 yen or 126.91 per cent higher in Tuesday's trade.
The Kyoto-based company's capitalisation also doubled upto $37 billion representing a growth of around $19 billion in just a week and a half.
The trading volume for the Nintendo stock hit a record last week for an individual stock on the Tokyo Stock Exchange.
This stratesphoric rise, highest experienced by the company in a decade, is thanks to an unprecendented success of the augmented reality game, that has boosted hopes that Nintendo could capitalize on a line-up of popular characters ranging from Zelda to Super Mario to strengthen its new foray into augmented reality.
"Virtual reality and augmented reality have been a focus of the market but hardly anyone was expecting Nintendo in this area. Suddenly Nintendo has become an AR-related stock," told a fund manager to Reuters at a Japanese asset management firm, who declined to be named as he is not allowed to discuss individual shares.
The fund manager said the big gains were justifiable considering the likely boost to Nintendo's bottom line.
"Under my rough estimate, the sales from Pokemon GO and upcoming related gadgets will boost net profits by 50 billion yen. Based on that assumption, Nintendo is traded at 30 times profits, which is not unreasonable," he said.
The popularity of Pokemon GO is producing an unexpected boom in some shares that have a scant link to the game.
Shares in First Baking, a bakery firm with annual sales of 25 billion yen, saw its shares rise 18 per cent on Tuesday as the firm sells "Pokemon Bread" among other breads wrapped with character-decorated bags.
(With inputs from Reuters)