The Super Mario Bros. Movie recently crossed the $500 million threshold at the domestic box office, placing it on an exclusive list of just 19 films. Globally, it has now amassed $1.2 billion and is now the fifth-biggest animated movie of all-time. For Nintendo's (OTC:NTDOY) first film venture in nearly 30 years, the film has been an astounding success.

7investing Lead Advisor Matthew Cochrane invited Ryan Henderson and Brett Schafer of Chit Chat Money to sit down to review Nintendo's investment thesis.

Henderson breaks down the movie's economics, explaining that Nintendo partnered with the animation studio Illumination, meaning that Nintendo does not take home all of the movie's profits. Still, after trying to use reasonable assumptions, Henderson and Schafer believe the movie can meaningfully impact Nintendo's bottom line.

Henderson and Schafer then discuss Nintendo's future plans for film and theme parks, and whether Nintendo's famously conservative management will finally look to monetize its intellectual property through additional channels. Inevitably, the question of the Walt Disney Co (NYSE:DIS) comes up and whether Nintendo has aspirations and the capabilities to mirror the entertainment giant's flywheel that includes theme parks, movies, TV, and merchandise.

Cochrane wonders if Nintendo is destined to be a cyclical company, following a pattern of hits and misses with the consoles the company has released over the years. The Nintendo Switch was a hug success, selling over 125 million units, but this followed the disastrous Wii U which only sold 13 million units. Henderson and Schafer discuss Nintendo's past mistakes but believe the company has learned form them and will release an updated Switch sometime in 2024.

After wrapping up their discussing on Nintendo, Cochrane asks Henderson and Schafer what they think about the U.K. blocking the pending Microsoft (NASDAQ:MSFT) acquisition of Activision Blizzard (NASDAQ:ATVI) and Electronic Arts (NASDAQ:EA) latest results.

You can follow Henderson and Schafer through the podcast that they co-host, Chit Chat Money: https://open.spotify.com/show/4SBtOWGEOmD9pmltgIXO8r

Henderson and Schafer also are the portfolio managers for Arch Capital Fund: https://www.archcapitalfund.com/

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Is it time to jump on Nintendo's stock? The 7investing Podcast (ft. Chit Chat Money)

The 7investing Podcast