New York-based Take-Two Interactive Software, Inc. (TTWO) is a major developer and publisher of video games across various platforms, including consoles, PCs, mobile devices, and tablets. Valued at $26.2 billion by market cap, the company operates through brands like Rockstar Games, 2K, Private Division, Social Point, and Playdots, with Private Division publishing the Kerbal Space Program.
Companies worth $10 billion or more are generally described as “large-cap stocks,” TTWO fits right into that category, signifying its substantial size, stability, and dominance in the electronic gaming & multimedia industry.
Take-Two Interactive leverages its strong brand recognition and diverse portfolio, featuring successful franchises like *Grand Theft Auto* and *NBA 2K*, enhanced by the acquisition of Gearbox and its titles like *Borderlands*. Furthermore, TTWO's international expansion into high-growth markets, such as Asia, along with localized offerings like *NBA 2K Online* in China, underscores its commitment to capturing global market share and maintaining a competitive edge through innovation.
Despite its notable strengths, the gaming giant has fallen 10.6% from its 52-week high of $171.59, touched on Feb. 8. Shares of TTWO have plunged 1.3% over the past three months, underperforming the broader Dow Jones Industrial Average Index’s ($DOWI) 6.9% return over the same time frame.
In the long term, TTWO shares have gained 8.5% over the past year, but in 2024, the stock is down 4.7%. By contrast, the DOWI is up 10.1% on a YTD basis and 19.9% over the past 52 weeks.
While TTWO has maintained its position above the 50-day moving average since mid-August, it has traded below the 200-day moving average recently.
Adding to the weak price performance, TTWO saw its shares drop over 2% on Sept. 9, following a notable 10% decline in weekly in-app purchases for the week ending September 8. This decline was the largest among gaming companies tracked by Bloomberg, based on data from Apptopia.
TTWO released its Q1 earnings on Aug. 8, and despite falling short of Wall Street's revenue estimates, the company's stock price increased by 4.4% the following trading session, largely fueled by stronger-than-expected earnings and positive investor sentiment ahead of the anticipated release of *Grand Theft Auto VI* in 2025.
In the dynamic electronic gaming & multimedia landscape, top rival Electronic Arts Inc. (EA) has outpaced TTWO over the past year, posting a 16.5% rise.
Despite its underwhelming price performance, analysts remain highly bullish about TTWO’s prospects. The stock has a consensus rating of “Strong Buy” from the 24 analysts covering it, and the mean price target of $188.47 indicates a premium of 19% from the prevailing price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
