Is Take-Two Interactive Software Stock Outperforming the Nasdaq?
New York-based Take-Two Interactive Software, Inc. (TTWO) develops, publishes, and markets interactive entertainment solutions. Valued at $45.6 billion by market cap, the company's products are for console systems, handheld gaming systems and personal computers and are delivered through physical retail, digital download, online, and cloud streaming services.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and TTWO perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the electronic gaming & multimedia industry. TTWO's commitment to innovation and creativity sets it apart, with advanced tech, compelling storylines, and engaging gameplay. Its internal IP development and strategic licensing enhance financial and competitive advantages.
Despite its notable strength, TTWO slipped 1.3% from its 52-week high of $250.45, achieved on Sep. 8. Over the past three months, TTWO stock has gained 7.4%, underperforming the Nasdaq Composite’s ($NASX) 15.2% gains during the same time frame.
In the longer term, shares of TTWO rose 34.3% on a YTD basis and climbed 62.5% over the past 52 weeks, outperforming NASX’s YTD gains of 15.7% and 26.4% returns over the last year.
To confirm the bullish trend, TTWO has been trading above its 50-day and 200-day moving averages since early October, 2024, with some fluctuations.
On Aug. 7, TTWO reported its Q1 results, and its shares closed down by 4% in the following trading session. Its adjusted EPS of $0.61 surpassed Wall Street expectations of $0.27. The company’s revenue stood at $1.5 billion, up 12.4% year over year. TTWO expects full-year revenue in the range of $6.1 billion to $6.2 billion.
In the competitive arena of electronic gaming & multimedia, Electronic Arts Inc. (EA) has lagged behind TTWO, showing resilience with a 17.4% uptick on a YTD basis and 17.8% gains over the past 52 weeks.
Wall Street analysts are bullish on TTWO’s prospects. The stock has a consensus “Strong Buy” rating from the 26 analysts covering it, and the mean price target of $261.96 suggests a potential upside of 5.9% from current price levels.
On the date of publication, Neha Panjwani 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.