Take-Two Interactive Stock Analysis Amid Market Volatility
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5h ago
0mins
Should l Buy TTWO?
Source: Yahoo Finance
- Solid Earnings Report: Take-Two Interactive Software's earnings report indicates a solid quarterly performance and a strong full-year forecast, particularly with the upcoming launch of Grand Theft Auto VI in November, setting a foundation for future growth.
- Stock Price Decline: Despite the positive earnings, Take-Two's stock fell over 5%, primarily due to market concerns regarding Google's AI platform Project Genie, which could significantly impact the video game industry.
- Increased Market Competition: With EA being taken private, Take-Two stands as the only independent publicly traded game publisher, leading to a 39% stock price increase driven by investor interest in its scarcity value and future potential.
- AI Stock Comparison: While Take-Two shows investment potential, analysts suggest that certain AI stocks may offer greater upside potential and lower downside risk, advising investors to carefully consider market dynamics in their choices.
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Analyst Views on TTWO
Wall Street analysts forecast TTWO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TTWO is 286.77 USD with a low forecast of 270.00 USD and a high forecast of 300.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
14 Buy
0 Hold
0 Sell
Strong Buy
Current: 193.240
Low
270.00
Averages
286.77
High
300.00
Current: 193.240
Low
270.00
Averages
286.77
High
300.00
About TTWO
Take-Two Interactive Software, Inc. is a developer, publisher, and marketer of interactive entertainment for consumers around the globe. The Company develops and publishes products principally through Rockstar Games, 2K, and Zynga. Its products are designed for console gaming systems, including, but not limited to, the Sony Computer Entertainment, Inc. (Sony) PlayStation4 (PS4) and PlayStation5 (PS5), the Microsoft Corporation (Microsoft) Xbox One (Xbox One) and Xbox Series XS (Xbox Series XS), and the Nintendo Switch (Switch), as well as mobile, including smartphones and tablets, and personal computers (PC). It delivers its products through physical retail, digital download, online platforms, and cloud streaming services. It sells software titles both digitally and physically through direct relationships with digital storefronts and platform partners, large retail customers, and third-party distributors. It also sells advertising within a number of its games, primarily in mobile.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Take-Two Interactive Stock Analysis Amid Market Volatility
- Solid Earnings Report: Take-Two Interactive Software's earnings report indicates a solid quarterly performance and a strong full-year forecast, particularly with the upcoming launch of Grand Theft Auto VI in November, setting a foundation for future growth.
- Stock Price Decline: Despite the positive earnings, Take-Two's stock fell over 5%, primarily due to market concerns regarding Google's AI platform Project Genie, which could significantly impact the video game industry.
- Increased Market Competition: With EA being taken private, Take-Two stands as the only independent publicly traded game publisher, leading to a 39% stock price increase driven by investor interest in its scarcity value and future potential.
- AI Stock Comparison: While Take-Two shows investment potential, analysts suggest that certain AI stocks may offer greater upside potential and lower downside risk, advising investors to carefully consider market dynamics in their choices.
See More
Analysts Focus on Take-Two and Mondelez
Report Overview: Recent reports from investment and research firms provide insights into analysts' perspectives on various companies.
Disclaimer: The views expressed in these reports do not reflect the opinions or recommendations of Barron’s.
Investment Services: Some report issuers may have existing or potential investment-banking relationships with the companies analyzed.
Purpose of Reports: The reports serve as a sampling of market analysis rather than definitive investment advice.
See More
Market Turmoil and Corporate Earnings Analysis
- Tech Sector Weakness: S&P futures tumbled due to weakness in Big Tech, with Bitcoin falling below $70,000 for the first time, indicating intensified sell-off in the crypto market that could undermine investor confidence and exacerbate market volatility.
- Job Market Instability: Challenger, Gray & Christmas reported that planned layoffs at American companies hit the highest January total since the global financial crisis, with hiring intentions at their lowest, reflecting the fragility of economic recovery and potential decline in consumer spending.
- Alphabet Price Target Hikes: Following a strong quarterly report, Wall Street analysts raised Alphabet's price targets, yet shares fell over 5% in early trading due to market rotation away from tech, highlighting concerns about future growth amidst competitive pressures.
- Boston Scientific Stock Plunge: Boston Scientific shares sank 17.5% on Wednesday, marking its largest single-day decline in 25 years after disappointing quarterly earnings, although Citi maintained a buy rating, indicating that increased competition could impact its market share.
See More
Take-Two Shares Decline Even with Improved Forecast: A Potential Buying Chance?
- Fiscal Year Guidance: Take-Two Interactive Software raised its fiscal year guidance, indicating a positive outlook for the company.
- Stock Performance: Despite the improved guidance, the stock was affected by a broader tech selloff on Wednesday.
See More
TTWO Reports Strong Results, Raises Guidance, Confirms GTA Release Date
- Strong Performance: TTWO reported robust earnings, showcasing the company's sustained growth in the gaming industry, which has driven stock price increases and bolstered investor confidence.
- Guidance Raised: The company has raised its performance guidance for the upcoming fiscal year, which is expected to further enhance market expectations for its stock, reflecting management's optimism about future growth.
- GTA Release Date Confirmed: TTWO confirmed the release date for the highly anticipated game GTA, which is expected to attract a large player base, significantly boosting sales and enhancing brand influence.
- Analyst Rating Maintained: Analysts have maintained an “Outperform” rating for TTWO with a target price of $300, indicating strong market confidence in the company's future performance and potential growth opportunities.
See More
Take-Two Reports Strong Q3 Results, Raises FY2026 Guidance
- Strong Performance: Take-Two reported net bookings of $1.757 billion for Q3 FY2023, exceeding the consensus estimate of $1.580 billion, driven by broad outperformance in mobile and core console franchises, particularly with record engagement in NBA 2K26 and Grand Theft Auto Online.
- Profitability Surge: The company achieved earnings of $1.23 per share, significantly surpassing the consensus of $0.83 per share, reflecting substantial operating leverage and marketing efficiency, which further solidifies its position in the competitive gaming market.
- Optimistic Outlook: Analyst Alicia Reese maintained an Outperform rating with a price target of $300, suggesting that the company is entering a multi-year earnings inflection supported by its barbell portfolio of AAA game launches and high-margin recurring revenue streams.
- Stock Price Fluctuation: Despite the strong results, Take-Two's shares fell by 3.28% to $205.21 at the time of publication, indicating market sensitivity to short-term fluctuations, prompting investors to monitor future market reactions.
See More
Take-Two Interactive Stock Analysis Amid Market Volatility
- Solid Earnings Report: Take-Two Interactive Software's earnings report indicates a solid quarterly performance and a strong full-year forecast, particularly with the upcoming launch of Grand Theft Auto VI in November, setting a foundation for future growth.
- Stock Price Decline: Despite the positive earnings, Take-Two's stock fell over 5%, primarily due to market concerns regarding Google's AI platform Project Genie, which could significantly impact the video game industry.
- Increased Market Competition: With EA being taken private, Take-Two stands as the only independent publicly traded game publisher, leading to a 39% stock price increase driven by investor interest in its scarcity value and future potential.
- AI Stock Comparison: While Take-Two shows investment potential, analysts suggest that certain AI stocks may offer greater upside potential and lower downside risk, advising investors to carefully consider market dynamics in their choices.
See More
Analysts Focus on Take-Two and Mondelez
Report Overview: Recent reports from investment and research firms provide insights into analysts' perspectives on various companies.
Disclaimer: The views expressed in these reports do not reflect the opinions or recommendations of Barron’s.
Investment Services: Some report issuers may have existing or potential investment-banking relationships with the companies analyzed.
Purpose of Reports: The reports serve as a sampling of market analysis rather than definitive investment advice.
See More
Market Turmoil and Corporate Earnings Analysis
- Tech Sector Weakness: S&P futures tumbled due to weakness in Big Tech, with Bitcoin falling below $70,000 for the first time, indicating intensified sell-off in the crypto market that could undermine investor confidence and exacerbate market volatility.
- Job Market Instability: Challenger, Gray & Christmas reported that planned layoffs at American companies hit the highest January total since the global financial crisis, with hiring intentions at their lowest, reflecting the fragility of economic recovery and potential decline in consumer spending.
- Alphabet Price Target Hikes: Following a strong quarterly report, Wall Street analysts raised Alphabet's price targets, yet shares fell over 5% in early trading due to market rotation away from tech, highlighting concerns about future growth amidst competitive pressures.
- Boston Scientific Stock Plunge: Boston Scientific shares sank 17.5% on Wednesday, marking its largest single-day decline in 25 years after disappointing quarterly earnings, although Citi maintained a buy rating, indicating that increased competition could impact its market share.
See More
Take-Two Shares Decline Even with Improved Forecast: A Potential Buying Chance?
- Fiscal Year Guidance: Take-Two Interactive Software raised its fiscal year guidance, indicating a positive outlook for the company.
- Stock Performance: Despite the improved guidance, the stock was affected by a broader tech selloff on Wednesday.
See More
TTWO Reports Strong Results, Raises Guidance, Confirms GTA Release Date
- Strong Performance: TTWO reported robust earnings, showcasing the company's sustained growth in the gaming industry, which has driven stock price increases and bolstered investor confidence.
- Guidance Raised: The company has raised its performance guidance for the upcoming fiscal year, which is expected to further enhance market expectations for its stock, reflecting management's optimism about future growth.
- GTA Release Date Confirmed: TTWO confirmed the release date for the highly anticipated game GTA, which is expected to attract a large player base, significantly boosting sales and enhancing brand influence.
- Analyst Rating Maintained: Analysts have maintained an “Outperform” rating for TTWO with a target price of $300, indicating strong market confidence in the company's future performance and potential growth opportunities.
See More
Take-Two Reports Strong Q3 Results, Raises FY2026 Guidance
- Strong Performance: Take-Two reported net bookings of $1.757 billion for Q3 FY2023, exceeding the consensus estimate of $1.580 billion, driven by broad outperformance in mobile and core console franchises, particularly with record engagement in NBA 2K26 and Grand Theft Auto Online.
- Profitability Surge: The company achieved earnings of $1.23 per share, significantly surpassing the consensus of $0.83 per share, reflecting substantial operating leverage and marketing efficiency, which further solidifies its position in the competitive gaming market.
- Optimistic Outlook: Analyst Alicia Reese maintained an Outperform rating with a price target of $300, suggesting that the company is entering a multi-year earnings inflection supported by its barbell portfolio of AAA game launches and high-margin recurring revenue streams.
- Stock Price Fluctuation: Despite the strong results, Take-Two's shares fell by 3.28% to $205.21 at the time of publication, indicating market sensitivity to short-term fluctuations, prompting investors to monitor future market reactions.
See More
