Crossroads Capital Investment’s Updates on Nintendo (NTDOY)

Crossroads Capital LLC, an investment management company, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Crossroads Capital Investment Partners, LP fell 7.6% net of all fees and expenses in the first quarter of 2025. The fund has compounded at 13.3% and 16.0%, respectively, since inception, and over the last five years outperformed its most suitable benchmarks. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Crossroads Capital highlighted stocks such as Nintendo Co., Ltd. (OTC:NTDOY). Headquartered in Kyoto, Japan, Nintendo Co., Ltd. (OTC:NTDOY) is a video game company that develops and manufactures home entertainment products. The one-month return of Nintendo Co., Ltd. (OTC:NTDOY) was 3.03%, and its shares gained 49.14% of their value over the last 52 weeks.  On June 6, 2025, Nintendo Co., Ltd. (OTC:NTDOY) stock closed at $20.73 per share, with a market capitalization of $95.539 billion.

Crossroads Capital stated the following regarding Nintendo Co., Ltd. (OTC:NTDOY) in its Q1 2025 investor letter:

“Our thesis on Nintendo Co., Ltd. (OTC:NTDOY), the Godzilla of video gaming, is quite simple. Armed with its Apple-like iterative hardware model and software-based ecosystem, as well as a growing active player base and ever-increasing digital sales, the company should generate substantial earnings growth that is de-coupled from the past “boom-bust” console cycles it previously underwent.

Indeed, for the first time ever, the new Switch will slide right into an existing software ecosystem, kickstarting an upgrade cycle from a profit base of nearly $4 billion rather than starting from zero, as it has with every other major console changeover in its multi-decade history in the video game space. With that, Nintendo is set to begin the final stage of its ongoing business model transformation we first laid out to you all the way back in 2019. Better yet, with an active playing base of 129 million users, the largest and most diverse integrated hardware/software ecosystem in all gaming, and over 34 million NSO subscribers, sticking the landing is all but certain. After all, Nintendo has an industry-leading (and historically under-monetized) IP library that continues to shine, getting new life in a rapidly expanding number of movies, theme parks, retail stores, general merchandise, and (we strongly suspect) a whole new crop of perpetual first-party live service games in the months and years ahead…” (Click here to read the full text)

A close up of a person’s hands using a home console gaming device.

Nintendo Co., Ltd. (OTC:NTDOY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 1 hedge fund portfolios held Nintendo Co., Ltd. (OTC:NTDOY) at the end of the first quarter, which was 1 in the previous quarter. While we acknowledge the potential of Nintendo Co., Ltd. (OTC:NTDOY) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.