TTWO Stock Analysis — Take-Two Interactive
Sector: Video Game Software
AI Verdict
At 32.7x next year's earnings with double-digit growth and a durable IP moat, you're paying a fair price for a hit-driven business that needs to deliver on its blockbuster pipeline.
Competitive Moat
Take-Two owns the Grand Theft Auto and Red Dead Redemption franchises, which have decades-long fan bases and high barriers to entry due to the cost and complexity of AAA game development. Its moat comes from both its intellectual property portfolio and the recurring revenue from in-game purchases and online modes.
Summary
Anticipation for the next Grand Theft Auto title is keeping Take-Two in the spotlight despite muted recent returns.
Where It Stands
Take-Two is up just 2.37% over the past year, trades at 32.7x forward earnings (below the 35x software median), and sits at a neutral RSI of 54.6.
Key Metrics
- RSI: 54.6 — Neutral
- Forward P/E: 32.7x
- Revenue Growth: +0.2%
- Market Cap: $45.3B
- 1-Year Return: 2.37%
- 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% revenue growth year-over-year and a forward P/E below the software sector median, the stock offers exposure to a rare pipeline of blockbuster franchises at a relative discount.
Bear Case
If the forward P/E compresses from 32.7x to the sector median of 35x, upside is limited, and with only a 2.37% one-year return, patience may wear thin if new releases slip.
Catalyst to Watch
Watch for concrete details or a release date on Grand Theft Auto VI, as a confirmed launch timeline could reset growth expectations and sentiment.