Nintendo stock hits two-year high and nears twelve-year high, analysts tie the rise to fears of a second wave of the pandemic

Nintendo stock is currently at a two-year high, reaching 48,470 as of today. If Nintendo manages to soar to the 50,000 mark, that would lift their stock to an impressive twelve-year high.

Analysts were asked why they believe Nintendo's stock has jumped recently, and it seems the prevailing answer points to concerns of a second wave of coronavirus. With reports coming in showing that the pandemic is on the rise again in some areas, people appear to be gearing up for a second stint of staying at home.

Katsuyuki Fujii, an analyst at Asunaro Investment, had this to say.

“The stock had been struggling the past two months with demand for stay-at-home stocks dropping as the economy re-opened and the state of emergency in Japan was lifted, but as fears for the second wave of coronavirus grow, people are taking a second look at those stocks.”

That sentiment was echoed by JPMorgan analyst Haruka Mori.

“We believe the Covid-19 pandemic has expanded earnings opportunities for the Nintendo Switch platform beyond one-off special demand.”