A break below the December lows suggests investors will continue to step away from the Switch story and the stock will remain in a downtrend for a prolonged period of time.
Shares of Nintendo fell as much as 6.9 percent after it forecast 17 million Switch shipments for the fiscal year through March, compared with its prior outlook for 20 million units and analysts’ average prediction for 18 million. The big question is whether Nintendo will have to cut the Switch’s $300