Shares of Nintendo lost 20-percent of their value on Monday, before regaining most of the lost ground.
Nintendo's stock in Tokyo was still down by more than six-percent in afternoon trading.
Some investors fled Nintendo after the company's Friday announcement that it expects an operating loss of more than $335-million in its fiscal year -- which ends in March.
That's a significant drop from a previous forecast, when Nintendo expected to turn a profit of just under $1-billion.
Nintendo slashed estimates for global sales of its "Wii U" console from nine-million to just under three-million, facing stiff competition from Microsoft's Xbox One and Sony's Playstation 4.