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The Verge
a day ago
- Business
- The Verge
When a big-time video game gets cancelled, expect Jason Schreier at
EA's Black Panther cancellation explained. Bloomberg to get the details quick, sharp, and in a hurry. This week EA announced it would cancel its Black Panther game, one of three the publisher has in development for Marvel Games. According to Schreier's reporting, EA executives were frustrated with progress on the game after four years in development.
Globe and Mail
21-05-2025
- Business
- Globe and Mail
Is Take-Two Stock (TTWO) a Buy After Earnings?
Take-Two (TTWO) stock was up on Monday as analysts updated their coverage of the company following its latest earnings report. As a reminder, the video game publisher posted adjusted earnings per share of $1.07 on revenue of $1.58 billion, compared to Wall Street's estimates of $1.10 per share and $1.55 billion in revenue. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter Despite those mixed results, analysts remain bullish on TTWO stock. Morgan Stanley analyst Matthew Cost maintained an Overweight rating and increased his price target to $265 from $210, representing a possible 13.35% upside for the company's shares. UBS analyst Chris Schoell kept a Buy rating for TTWO stock and increased the price target to $275 from $230, a potential 17.63% upside. Five-star Roth MKM analyst Eric Handler reiterated a Buy rating and $265 price target, implying a 13.35% upside for the shares. Analysts remain bullish on Take-Two stock as the company gears up to release Grand Theft Auto VI on May 26, 2026. This could be a huge catalyst for TTWO shares as its predecessor, Grand Theft Auto V, is the second-best-selling game in history with over 215 million units shipped. Even a fraction of those sales could be a huge win for Take-Two and its investors. TTWO Stock Movement Today While Take-Two had to delay Grand Theft Auto VI to 2026, and its latest earnings were mixed, TTWO stock has remained a strong investment in 2025. The company's stock jumped 3.05% on Monday morning, and has rallied 26.93% year-to-date. Is TTWO Stock a Buy, Sell, or Hold? Turning to Wall Street, the analysts' consensus rating for Take-Two is Strong Buy, based on 15 Buy ratings over the last three months. With that comes an average TTWO stock price target of $253.60, representing a potential 8.3% upside for the shares. See more TTWO stock analyst ratings Disclaimer & Disclosure Report an Issue
Yahoo
16-05-2025
- Business
- Yahoo
Take-Two Interactive Software Inc (TTWO) Q4 2025 Earnings Call Highlights: Strong Net Bookings ...
Net Bookings: $1.58 billion for Q4 2025, top of guidance range. Recurrent Consumer Spending Growth: Increased 14% year-over-year, accounting for 77% of net bookings. GAAP Net Revenue: Increased 13% to $1.58 billion for Q4 2025. Operating Expenses: Increased 44% to $4.6 billion due to a $3.6 billion impairment expense. Fiscal 2025 Net Bookings: $5.65 billion, top of guidance range. Operating Cash Flow: Outflow of $45 million, better than forecasted outflow of $200 million. Capital Expenditures: $169 million, above forecast due to higher game technology expenses. Fiscal 2026 Net Bookings Outlook: $5.9 billion to $6 billion, representing 5% growth at midpoint. Fiscal 2026 GAAP Net Revenue Outlook: $5.95 billion to $6.05 billion. Fiscal 2026 Operating Cash Flow: Expected to be approximately $130 million. Fiscal Q1 2026 Net Bookings Outlook: $1.25 billion to $1.3 billion. Fiscal Q1 2026 GAAP Net Revenue Outlook: $1.35 billion to $1.4 billion. Warning! GuruFocus has detected 9 Warning Signs with TTWO. Release Date: May 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Take-Two Interactive Software Inc (NASDAQ:TTWO) concluded fiscal year 2025 with outstanding results, achieving fourth quarter net bookings of $1.58 billion, which was at the top of their guidance range. NBA 2K delivered one of its strongest periods on record, with recurrent consumer spending growth of 42% and a 7% increase in unit sales compared to NBA 2K24. Rockstar Games exceeded expectations with the Grand Theft Auto and Red Dead Redemption series, with GTA V selling over 215 million units. Zynga continued to gain momentum, with successful titles like Match Factory!, Toon Blast, and Color Block Jam contributing to strong mobile performance. The company is optimistic about its upcoming pipeline, planning to release 38 titles through fiscal 2028, including highly anticipated games like Grand Theft Auto VI and Borderlands 4. Operating expenses increased by 44% to $4.6 billion due to an impairment expense of $3.6 billion related to goodwill and acquired intangible assets. Recurrent consumer spending is expected to be flat in fiscal 2026 compared to fiscal 2025, with declines anticipated in mobile and Grand Theft Auto Online. The company faced challenges in the mobile gaming segment, with expectations of moderation in trends for mature titles in fiscal 2026. There is uncertainty regarding the impact of console price increases on the company's guidance for the year. The company experienced higher development costs for titles not technologically feasible, impacting operating expenses. Q: With the industry discussing potential game price increases to $80, why did Take-Two choose a $50-$60 price range for Mafia? Will future releases have variable pricing? A: Strauss Zelnick, CEO: We've always had variable pricing, aiming to deliver more value than what we charge. For Mafia, we want to reach as many players as possible, believing that if a game is a hit, revenue will follow. Q: Regarding the $3.5 billion goodwill impairment, is it related to Zynga, and are there structural changes at Zynga? A: Lainie Goldstein, CFO: We haven't specified which unit the impairment is from, but it was a partial impairment due to updated long-term expectations. This is a regular process based on forecast updates. Q: Can Take-Two achieve the low to mid-20% operating margins seen during the peak performance period post-Red Dead 2 and the pandemic? A: Lainie Goldstein, CFO: There's no reason we can't reach those margins again. We're working on cost reduction and efficiency to offset increased development costs, aiming to build scale and improve margins. Q: What drives the impressive performance of the mobile segment, and why is it positioned to grow this fiscal year? A: Strauss Zelnick, CEO: Creating new mobile hits is challenging, but Zynga is succeeding with titles like Match Factory! and Color Block Jam. This success is due to talented teams and effective publishing strategies. Q: What are the long-term assumptions for Take-Two's business post-GTA VI launch, and what are the key drivers for sustainability? A: Strauss Zelnick, CEO: While we don't provide long-term guidance, we're more optimistic than before. We expect sequential growth in fiscal '26 and '27, with GTA VI contributing to record net bookings and free cash flow. Q: How is the Nintendo Switch 2 viewed as a distribution partner, and will more Take-Two titles be available on the platform? A: Strauss Zelnick, CEO: We're launching four titles with Switch 2, more than ever before. We evaluate each platform on a case-by-case basis, aiming to be where consumers are, but not every title will be on every platform. Q: What are the key learnings from scaling games via Netflix, and could Netflix help transform gaming IP into mainstream media? A: Karl Slatoff, President: Netflix is a great partner, serious about gaming, and has a large consumer base. While we've done some media deals like the BioShock movie, it's not the primary driver of our partnership. Q: What are the expectations for operating expenses in fiscal '26, and how do they relate to GTA-related marketing costs? A: Lainie Goldstein, CFO: We expect a 3% year-over-year increase in operating expenses, mainly due to higher marketing costs for current and future titles. We aim for operating expense leverage as net bookings growth outpaces expense expansion. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. 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Yahoo
16-05-2025
- Business
- Yahoo
Take-Two CEO calls 'Grand Theft Auto VI' the 'most-anticipated entertainment property of all time'
Take-Two's CEO said in an earnings call Thursday that the delay of "GTA 6" is a "worthy investment." The delay led to an initial 8% drop in Take-Two's stock. Shares fell again on Thursday. Take-Two said it remains optimistic, citing coming releases like 'Borderlands 4.' The company behind "Grand Theft Auto 6" tried to spin the game's delayed release as a good thing during an earnings call on Thursday. "I believe affording Rockstar additional time for such a groundbreaking project is a worthy investment," Take-Two CEO Strauss Zelnick said. Zelnick went so far as to call the crime-filled video game the "most anticipated entertainment property of all time." Wall Street doesn't seem to be buying it, however. Rockstar Games, which produces the "Grand Theft Auto" series, announced on May 2 that the game's release would be delayed until 2026. The announcement sent shares of Take-Two, Rockstar's parent company, tumbling by more than 8%. Take-Two's stock dipped again on Thursday ahead of the company's earnings call. The company's forecast fell short of expectations, largely due to the delay of "GTA VI." Zelnick said the "ambition and complexity" of "Grand Theft Auto 6" is greater than any other game Rockstar has created. "The team is poised to release another astonishing entertainment experience that will exceed players' expectations," he said. Zelnick said the "Grand Theft Auto" series has been "the standard bearer, not just for our company, but for the industry, since it was launched." "We, of course, do market research around here, and the market research that we've done is pretty astonishing," Zelnick said on the call. "But look, we're not in the business of claiming success until it happens. All we're focused on is making the best possible entertainment here. That's our job. The rest will take care of itself." Despite the game's delay, Take-Two executives said they expected the company's year to be successful ultimately, pointing to other coming releases like "Borderlands 4" and "Mafia: The Old Country." Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
