TTWO Stock Analysis — Take-Two Interactive
Sector: Gaming Software
AI Verdict
You’re paying a fair price for the growth on offer, but the story hinges on the next GTA delivering — the moat is real, but expectations are already built in.
Competitive Moat
Take-Two owns the Grand Theft Auto and Red Dead Redemption franchises, giving it unique pricing power and recurring revenue from a loyal global fanbase. The company’s deep IP library and live-service integration create high switching costs for gamers and steady monetization opportunities.
Summary
Anticipation for the next Grand Theft Auto release is keeping TTWO in focus despite modest recent returns.
Where It Stands
TTWO has delivered a 4.62% 1-year return, trades at 31.6x forward earnings (below the 35x software median), and sits at an RSI of 49.5, signaling a neutral setup.
Key Metrics
- RSI: 49.5 — Neutral
- Forward P/E: 31.6x
- Revenue Growth: +0.2%
- Market Cap: $44.8B
- 1-Year Return: 4.62%
- 52-Week High: $265.94
- 52-Week Low: $187.63
Analyst Consensus
35 Buy · 3 Hold · 0 Sell (38 analysts)
Bull Case
With 18.2% trailing revenue growth and a forward P/E of 31.6x, investors are paying less than the sector median for a company with blockbuster IP and a pipeline of major releases.
Bear Case
If TTWO's P/E were to compress to the 25x hardware/semis median, the stock would lose over 20% from current valuation levels.
Catalyst to Watch
Watch for concrete news or trailers on Grand Theft Auto VI, as release timing and early reception could drive a major re-rating.