Latest news with #Take-TwoInteractiveSoftware
Yahoo
25-05-2025
- Business
- Yahoo
Where Will Take-Two Stock Be in 3 Years?
Buzz is building for the next release in the Grand Theft Auto series -- one of the bestselling video game franchises of all time. Wall Street analysts project Take-Two's adjusted revenue to hit $9 billion in two years. The stock's valuation could support more upside for shareholders. 10 stocks we like better than Take-Two Interactive Software › Shares of Take-Two Interactive (NASDAQ: TTWO) have been trending higher over the past year. The company has reported solid sales from its roster of video game franchises, led by one of the most popular brands in gaming, Grand Theft Auto. Take-Two stock is gaining attention on Wall Street as the launch date of the next installment in the Grand Theft Auto series emerges on the horizon. Grand Theft Auto V, the current iteration of the series, was released in 2013 and has sold over 215 million copies. The stock doubled within three years of that release and went on to deliver an incredible 1,230% to date. Should you buy the stock now? While Grand Theft Auto VI is currently slated to release in May 26, 2026, there appears to be tremendous pent-up demand from players. We'll take a look at how much revenue Grand Theft Auto VI (GTA VI) could generate for Take-Two over the next few years and where the stock could trade by 2028. The GTA series has seen several releases over the last few decades. It is one of the best-selling franchises of all time, selling a cumulative 450 million copies. Each new release has expanded the popularity of the series. With the current version of the game selling significantly more copies than previous releases, the next release will be selling into a huge built-in fan base. The viewership numbers of the second trailer released for GTA VI were a record 475 million within the first 24 hours, fueling high expectations for sales. The 2013 launch of GTA V was a milestone event for Take-Two's financials. The company's revenue nearly doubled from $1.2 billion to $2.3 billion in fiscal 2014. Considering the game's growth in popularity, the next release could generate even higher sales. Wall Street's consensus estimate has Take-Two's non-GAAP revenue, or bookings, hitting $9 billion by fiscal 2027 (which ends in March), up from $5.6 billion for the recent fiscal year. There's always a risk that a video game's release could have lower-than-expected sales. But new releases for existing franchises are generally safe bets, especially a franchise of this magnitude. Management credited strong player interest in the current GTA game for contributing to the 17% year-over-year increase in bookings last quarter. The stock could outperform the broader market over the next three years. It trades at a price-to-sales (P/S) multiple of 7, which is below the 8.5 sales multiple that Microsoft paid for Activision Blizzard a few years ago. With Take-Two on the verge of record sales, you could argue the stock is undervalued. Assuming the stock continues to trade around the same P/S multiple, the share price could climb in proportion to the company's revenue and bookings, which tend to parallel each other. The fiscal 2027 bookings estimate is 60% higher than Take-Two's trailing-12-month bookings, and analysts expect a slight dip in sales without a major release in fiscal 2028. Overall, investors can reasonably expect the stock to return around 50% from current share prices over the next three years. But investors should also consider the downside scenario if GTA VI sales don't pan out. The stock traded under 4 times sales in the 2022 bear market, which is a peak scenario for investor pessimism. If Take-Two's bookings come in $1 billion short of expectations, or $8 billion in fiscal 2027, which would be a severe miss, and the stock is trading at 4 times sales, that would lead to over 20% downside from the current $225 share price. A bigger sales miss would add to the downside, but I believe Take-Two is more likely to exceed rather than miss estimates. Rockstar Games, the Take-Two subsidiary that develops GTA, has a sterling reputation for releasing quality gaming experiences that are entertaining for players. The stock is not a screaming buy, but it has a good chance of outperforming the broader market. Keep in mind, management has several other releases planned to drive shareholder returns. It's also focused on being disciplined in managing costs to improve profit margins, so Take-Two could be a rewarding investment for the next few years and beyond. Before you buy stock in Take-Two Interactive Software, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Take-Two Interactive Software wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft and Take-Two Interactive Software. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Where Will Take-Two Stock Be in 3 Years? was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
23-05-2025
- Business
- Yahoo
Roth MKM Maintains a Buy Rating on Take-Two Interactive (TTWO)
In a report released on May 19, Eric Handler from Roth MKM maintained a Buy rating on Take-Two Interactive Software, Inc. (NASDAQ:TTWO), with a price target of $265.00. The rating update came after the company reported its fiscal Q4 2025 earnings on May 16. A close-up of a hand holding a game controller, demonstrating the interactive entertainment of the company. Analysts are bullish on Take-Two Interactive Software, Inc. (NASDAQ:TTWO) because of its notable results for fiscal year 2025. Net bookings for Q4 2025 reached $1.58 billion, at the top of its guidance range. The strong performance was attributed to all of its labels, including NBA 2 K, which delivered one of its strongest on-record periods with recurrent consumer spending growth of 42%. Take-Two Interactive Software, Inc.'s (NASDAQ:TTWO) initial financial outlook for fiscal 2026 reflects a continuation of its current positive trends, with net bookings of $5.9 billion to $6 billion, reflecting a 5% year-over-year increase at the midpoint of the range. While we acknowledge the potential of TTWO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TTWO and that has 100x upside potential, check out our report about the . READ NEXT: and . Disclosure: None. Sign in to access your portfolio
Yahoo
23-05-2025
- Business
- Yahoo
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) Just Reported And Analysts Have Been Cutting Their Estimates
Shareholders might have noticed that Take-Two Interactive Software, Inc. (NASDAQ:TTWO) filed its yearly result this time last week. The early response was not positive, with shares down 2.7% to US$226 in the past week. It was a pretty bad result overall; while revenues were in line with expectations at US$5.6b, statutory losses exploded to US$25.58 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Following the latest results, Take-Two Interactive Software's 23 analysts are now forecasting revenues of US$6.00b in 2026. This would be a satisfactory 6.5% improvement in revenue compared to the last 12 months. Per-share statutory losses are expected to explode, reaching US$2.55 per share. Before this earnings report, the analysts had been forecasting revenues of US$7.79b and earnings per share (EPS) of US$0.96 in 2026. So we can see that the consensus has become notably more bearish on Take-Two Interactive Software's outlook following these results, with a pretty serious reduction to next year's revenue estimates. Furthermore, they expect the business to be loss-making next year, compared to their previous calls for a profit. See our latest analysis for Take-Two Interactive Software The average price target lifted 7.5% to US$243, clearly signalling that the weaker revenue and EPS outlook are not expected to weigh on the stock over the longer term. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Take-Two Interactive Software analyst has a price target of US$275 per share, while the most pessimistic values it at US$137. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Take-Two Interactive Software shareholders. Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Take-Two Interactive Software's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 6.5% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.8% annually. Factoring in the forecast slowdown in growth, it seems obvious that Take-Two Interactive Software is also expected to grow slower than other industry participants. The most important thing to take away is that the analysts are expecting Take-Two Interactive Software to become unprofitable next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving. With that in mind, we wouldn't be too quick to come to a conclusion on Take-Two Interactive Software. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Take-Two Interactive Software going out to 2028, and you can see them free on our platform here.. You can also view our analysis of Take-Two Interactive Software's balance sheet, and whether we think Take-Two Interactive Software is carrying too much debt, for free on our platform here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
22-05-2025
- Business
- Yahoo
Roth MKM Maintains a Buy Rating on Take-Two Interactive (TTWO)
In a report released on May 19, Eric Handler from Roth MKM maintained a Buy rating on Take-Two Interactive Software, Inc. (NASDAQ:TTWO), with a price target of $265.00. The rating update came after the company reported its fiscal Q4 2025 earnings on May 16. A close-up of a hand holding a game controller, demonstrating the interactive entertainment of the company. Analysts are bullish on Take-Two Interactive Software, Inc. (NASDAQ:TTWO) because of its notable results for fiscal year 2025. Net bookings for Q4 2025 reached $1.58 billion, at the top of its guidance range. The strong performance was attributed to all of its labels, including NBA 2 K, which delivered one of its strongest on-record periods with recurrent consumer spending growth of 42%. Take-Two Interactive Software, Inc.'s (NASDAQ:TTWO) initial financial outlook for fiscal 2026 reflects a continuation of its current positive trends, with net bookings of $5.9 billion to $6 billion, reflecting a 5% year-over-year increase at the midpoint of the range. While we acknowledge the potential of TTWO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TTWO and that has 100x upside potential, check out our report about the . READ NEXT: and . Disclosure: None. 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
Yahoo
21-05-2025
- Business
- Yahoo
Take-Two Interactive Software, Inc. (TTWO): A Bull Case Theory
We came across a bullish thesis on Take-Two Interactive Software, Inc. (TTWO) on Substack by SuperJoost. In this article, we will summarize the bulls' thesis on TTWO. Take-Two Interactive Software, Inc. (TTWO)'s share was trading at $237.50 as of May 20th. TTWO's forward P/E 77.52 according to Yahoo Finance. A computer technician working on a video game console with a gaming headset. Take-Two Interactive is entering a transformative period with strong momentum, driven not by its flagship Grand Theft Auto franchise but by NBA 2K, which has evolved into a year-round engagement engine. By shifting from a one-size-fits-all approach to a cohort-driven model, NBA 2K saw an 80% year-over-year increase in average sessions per player, leading to a 42% surge in in-game spending and a 7% uptick in full-game unit sales. This personalization strategy helped boost overall recurrent consumer spending by 14% YoY. Mobile gaming also delivered a surprise upside with 3% growth, outperforming expectations despite margin pressure from rising development costs. Games like Dragon City and Two Dots continue to overdeliver in this segment. While fiscal 2026 guidance came in below consensus, largely due to what analysts consider overly cautious expectations for upcoming releases like Borderlands and Mafia, management is emphasizing stability over hype. Historically, both franchises have posted strong launches—Borderlands 3 sold 5 million units in five days—yet are being downplayed in projections. Instead, leadership is urging investors to focus on FY27, when the highly anticipated release of GTA 6 is expected to redefine the company's earnings power. CEO Strauss Zelnick, in a recent interview, noted Rockstar's continued delivery of content through GTA Online expansions, effectively releasing new GTA experiences multiple times a year. As the company leans into tailored engagement and live operations, it's building a more durable revenue base. Take-Two's innovation in personalized distribution and engagement not only supports current performance but sets the stage for a transformative FY27. Take-Two Interactive Software, Inc. (TTWO) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 67 hedge fund portfolios held TTWO at the end of the fourth quarter which was 46 in the previous quarter. While we acknowledge the risk and potential of TTWO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TTWO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
