Take-Two Interactive Software, Inc. (TTWO), headquartered in New York, is a major developer and publisher of video games across various platforms, including consoles, PCs, mobile devices, and tablets. Valued at $31.9 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 draws strength from its renowned brand and an expansive portfolio that includes best-selling franchises such as Grand Theft Auto and NBA 2K. The addition of Gearbox, the studio behind Borderlands, has further diversified its offerings. By prioritizing international growth, particularly in high-potential markets like Asia, and developing region-specific products like NBA 2K Online for China, the company reinforces its strategy to expand globally and stay ahead through continuous innovation.
The gaming giant has fallen 5,5% from its 52-week high of $191.91, touched on Dec. 6. Shares of TTWO have surged 18% over the past three months, outpacing the Communication Services Select Sector SPDR ETF (XLC), which has gained 9.6% over the same time frame.
In the long term, TTWO shares have gained 12.7% in 2024, and the stock is up 13.8% over the past year. By contrast, the XLC is up 34.1% on a YTD basis and 34.5% over the past 52 weeks.
While TTWO has maintained its position above the 50-day and 200-day moving average since mid-October, indicating a bullish trend.
On Nov. 6, TTWO shares soared more than 1% after reporting its Q2 results. Its adjusted EPS of $0.66 topped Wall Street expectations of $0.42. The company’s adjusted revenue was $1.4 billion, up 4.1% year over year. It expects full-year revenue in the range of $5.6 billion to $5.7 billion.
In the dynamic electronic gaming & multimedia landscape, top rival Electronic Arts Inc. (EA) has struggled to keep up with TTWO over the past year, posting a 6.7% rise.
Given its robust price performance, analysts remain highly bullish about TTWO’s prospects. The stock has a consensus rating of “Strong Buy” from the 25 analysts covering it, and the mean price target of $196.23 indicates a premium of 8.2% from the prevailing price levels.
