The first quarter of 2018 was good for Nintendo with a total of ~20 million units of Nintendo switch sold and ~80 million games.
Effectivness vs innovation
It's nearly a decade since Nintendo had a good run and rumours where made. The journey aint just sunshine and rainbows when you're chasing innovation, creativity does not know an absolute deadline!
If you look at Nintendo's stock market you'll see some major drops over the years (source by https://www.marketwatch.com/investing/stock/ntdoy).
A man named Gabriel Plotkin placed a bet on Nintendo's stock price's continued fall with $400.000.000 and if you look at the short term, indeed Nintendo looked done for and it was the logical decision.
No logics in belief
Stock price can only measure one layer, there's no technique that measures a companies belief!
With ~20 million consoles and ~80 million games sold once again Nintendo's stock price is increasing and probably continue to do so so for a few years.
Nintendos profits increased like a skyrocket and Gabriel Plotkin from Melvin Capital Management was soon to regret his choice.