How Is Take-Two Interactive Software's Stock Performance Compared to Other Gaming Stocks?
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.
On the date of publication, Aditya Sarawgi 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.