New York-based Take-Two Interactive Software, Inc. (TTWO) operates as a leading developer and publisher of video games. Valued at $36.1 billion by market cap, the company develops and publishes action and adventure products under Grand Theft Auto, LA Noire, Max Payne, and other names.
Companies worth $10 billion or more are generally classified as “large-cap stocks,” Take-Two fits right into that category, reflecting its substantial size, dominance and influence in the gaming industry.
Take-Two touched its all-time high of $218.75 on Feb. 19 and is currently trading 4.5% below that peak. Meanwhile, TTWO stock has soared 15.2% over the past three months, notably outpacing the VanEck Video Gaming and eSports ETF’s (ESPO) 7.7% gains during the same time frame.
Take-Two’s performance has remained impressive over the longer term as well. TTWO stock surged 35.9% over the past six months, significantly outpacing ESPO’s 23% gains over the same time frame. However, TTWO soared 43.8% over the past 52 weeks, marginally lagging behind ESPO’s 44.6% returns over the past year.
To confirm the bullish trend, TTWO stock has traded mostly above its 50-day moving average and consistently above its 200-day moving average since early October 2024.
Take-Two Interactive’s stock prices soared 14% in the trading session after the release of its Q3 results on Feb. 6. While the company experienced softness in several mobile franchises, its NBA 2K’s outperformance led to approximately 3% year-over-year increase in net bookings to $1.4 billion. However, due to a decrease in advertising revenues, the company's overall topline decreased 48 bps compared to the year-ago quarter to approximately $1.4 billion, missing the Street’s expectations by a thin margin. On a brighter note, Take-Two’s adjusted EPS of $0.34 surpassed the consensus estimates by a notable margin which boosted investor confidence.
Meanwhile, Take-Two Interactive has significantly outperformed its peer Electronic Arts Inc.’s (EA) 87 bps uptick over the past six months and 6.8% gains over the past 52 weeks.
Furthermore, analysts remain optimistic about the stock’s prospects. Among the 25 analysts covering the TTWO stock, the consensus rating is a “Strong Buy.” Its mean price target of $222.65 represents a 6.6% premium to current price levels.
