How to Invest in Pokémon Go; the Augmented-Reality Revolution

CENTRAL DISTRICT, Hong Kong - July 25, 2016 - PRLog -- James Lucas, U.S. Equities Specialist, Wealth Alliance: It is difficult to not miss the Pokemon Go revolution, it has been downloaded hundreds of millions of times already and is growing on a second-by-second basis; it has been downloaded more times than Twitter.

Niantic

The game was developed by Niantic, which is headed up by John Hanke. The company used to be a division of Google, however it was let lose during September of 2015 during the creation of Google's alphabet organization. They have successfully raised $25 million through two rounds from 8 investors with the most recent round being in April of a $150 million valuation in February.

It is widely thought that the company's independence that gleamed them their partnership with Nintendo and the signing of Pokemon Go. Hanke has recently been on record stating that the company was, "Always kind of bumping up against Google's desire to stay neutral."

It is no secret that Google love platforms and this has always been my argument for owning the company since it went public. It has a strict policy of not favouring one developer over another and the fact remains that the likes of Nintendo, generally prefer to partner with an independent company versus a giant like Google.

The information regarding what percentage of Niantic is owned by Google, however the company does still own a far slice of the spin-off.

The Safe Play

In the opinion of the team at Wealth Alliance, the safest way to play the outrageous success of Pokemon Go is as obvious, Niantic, Apple, Nintendo or of course Google. As an example Apple take a straight 30% profit from every dollar spent on their app platforms/purchases.

We stand by that Google is a safer play than Apple in the Augmented Reality Revolution/ Virtual Reality Revolution since Google's earlier plays within these sectors are already as the Pokemon Go App has shown the world.

Nintendo's proprietorship in and capability to profit from Pokemon Go is like to Google. The firm owns 33% of the company that is the owner of the Pokemon brand, intellectual property and other assets.  Morgan Stanley MUFG Securities equity analyst Mia Nagasaka regarding the potential earnings impact for Nintendo from Pokemon Go

"For Pokemon Go to have a meaningful impact Nintendo's profits, the game needed to hit a minimum of 15 billion to 20 billion yen ($140 million to $196 million) turnover per month."

"Currently, the game is freely available for download on the App Store and on Google Play but offers in-app purchases for additional items and power-ups."

Nagasaka added, "The estimated daily turnover for Pokemon Go on the first day was around 400 million to 500 million yen ($3.9 million to $4.9 million), so in order to give Nintendo a serious leg up earnings-wise, the app needed to be consistently at the top position for sales on app stores."

Securing the Brand

What is essential over a longer term perspective, Pokemon Go has rejuvenated and essentially saved the brand from complete irrelevance and the prospect for multi-million dollar parks, movies and licensing opportunities are a very real possibility.

If Nintendo can successfully tie in their products like the latest Wii that was launched during March of 2015, then it presents a better portioned company and a relatively safe way to play the AR and VR revolutions.

When you take into consideration, Nintendo's ownership and the ancillary benefits of Pokemon Go has added $9 billion to the company's market caps in just two days recently, we can also draw the conclusion that Niantic's valuation has increased over ten-fold since its last two rounds of valuation at just $150 million. Great news for Google and the seven other owners.

If you would like to establish how Wealth Alliance can assist you, your family and/or business secure a brighter financial future then simply arrange a convenient time to speak to one of the team.

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