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TTWO

Take Two (TTWO) & ROCKSTARTakeTwo Intractive's costs are rising as fast as revenues, and the Zynga acquisition has yet to prove itself. Of course, GTA 6 is an excellent argument, but even this is not without risk; after all, it is not guaranteed that every new GTA is of the highest quality. Overall, it seems that an investment in the company is currently a pure bet on the massive success of GTA 6. But if that's the investment thesis, why invest now? TakeTwo has an excellent reputation in the industry and trades with a premium valuation compared to the competition. But several points do not look entirely positive. Costs are rising as fast as revenues, and the Zynga acquisition has yet to prove itself. At the same time, shareholders are slowly but steadily burdened by stock dilution and stock-based compensation. Plus, the CEO sold 21% of his shares in April. Yes, eventually, GTA 6 will be released, but if that's the main argument for the investment, you might as well wait another six months and possibly get in at a cheaper price. The last quarter was not very successful for the company. Revenue was $1.4B but missed expectations by $140M. On a GAAP basis, there was a significant loss per share of -$1.54. They also lowered FY 2023 revenue guidance from $5.8B to $5.4B. The chart below shows the evolution of some metrics over the last five years. Here we see that revenues are increasing strongly, but costs are increasing almost at the same rate, so real profits are not growing. The company is currently valued at an enterprise value of $19B. The market cap is $16.9B, and the total debt is $3.7B. The P/S ratio is 4.4, and the forward P/E ratio is approx. 25. The share is thus more cheaply valued than the last few years' averages this year we going to see GTA6 first trailer and probably release data announcement, plus a next gen update for Red dead redemption2 TTWO under 99$ is a buy zone , I managed to buy some shares at 94$ and will buy more if back to 90-80$ zone again
NASDAQ:TTWOLong
by moonypto
20
Take Two | TTWO & GTA VIIs TakeTwo Interactive Software Fairly Valued? We use what is known as a 2 stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Present Value of 10-year Cash Flow (PVCF) = US $9.1b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.2%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.5%. The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$27b. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of US$139, the company appears about fair value at a 14% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Take-Two Interactive Software as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.5%, which is based on a levered beta of 1.071. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn't be the only metric you look at when researching a company. DCF models are not the be-all and end-all of investment valuation. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For Take-Two Interactive Software, we've put together three pertinent items you should explore: Risks: To that end, you should be aware of the 1 warning sign we've spotted with Take-Two Interactive Software Future Earnings: How does TTWO's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! long story short Using the 2 Stage Free Cash Flow to Equity, Take-Two Interactive Software fair value estimate is US$162 and with US$138 share price, Take-Two Interactive Software appears to be trading close to its estimated fair value
Editors' picks
NASDAQ:TTWOLong
by moonypto
14
TAKE-TWO INTERACTIVE SOFTWARE $TTWO - Feb. 28th, 2024TAKE-TWO INTERACTIVE SOFTWARE NASDAQ:TTWO - Feb. 28th, 2024 BUY/LONG ZONE (GREEN): $153.00 - $168.45 DO NOT TRADE/DNT ZONE (WHITE): $143.65 - $153.00 SELL/SHORT ZONE (RED): $133.00 - $143.65 Weekly: Bearish Daily: Bearish 4H: Bearish Currently in a DNT zone as it would be unfair to automatically wait for price to drop and then say it's a bearish area; however, price is strongly bearish on the weekly, daily, and 4H. Shown in blue is previous zones that I would follow and the order in which I would follow them, the previous bullish trend was fairly clear and strong (labels A-E & 1-3). About three weeks ago we saw a drop that pushed right into a bearish zone below level $156.75 (bottom of the zone). Drawn now are the current zones where price currently resides and the trends I would follow in each of them. The arrows show simple potential price movement to look for, but the market is always subject to change and create new levels. Bulls can look for early entry at the bottom of the DNT zone at $143.65 and seek a bounce or wait for price to break back above $153.00. Bears can look for price continuing below level $143.65 or a pullback anywhere up to $153.00 and rejection back towards the $143.65 level and lower. This is what I would personally look at before entering trades, everything is subject to change on a daily basis and as I analyze different timeframes and ideas. ENTERTAINMENT PURPOSES ONLY, NOT FINANCIAL ADVICE! trend analysis, chart patterns, support and resistance
NASDAQ:TTWOShort
by TonyAiello
2
Take-Two Interactive Faces Setbacks Amidst Lowered ForecastsTake-Two Interactive Software Inc., ( NASDAQ:TTWO ) renowned for its iconic titles like "Grand Theft Auto" and "Red Dead Redemption," recently faced a tumultuous period marked by lowered fiscal forecasts and the postponement of a highly anticipated game release. Despite these setbacks, analysts remain cautiously optimistic about the company's future, citing a strong content pipeline and the potential for blockbuster releases. Let's delve into the intricacies of Take-Two Interactive's ( NASDAQ:TTWO ) recent challenges and the silver linings that offer hope to investors. A Bumpy Ride in Fiscal Q3: In its fiscal third-quarter earnings report, Take-Two Interactive ( NASDAQ:TTWO ) revealed a 3% year-over-year decline in total net bookings, amounting to $1.34 billion for the three months ending December 31, 2023. The slip in net bookings was accompanied by increased marketing costs and a net loss, including an impairment charge, totaling $91.6 million. Notably, sales of "NBA 2K24" fell short of expectations, although the company remains optimistic about the title's long-term performance. Game Delays and Revised Forecasts: Adding to the company's woes was the announcement of a delay in the release of an unspecified game originally slated for the fourth quarter of the fiscal year. This, coupled with challenges in the mobile gaming advertising segment, prompted Take-Two Interactive ( NASDAQ:TTWO ) to revise its guidance for full-year net bookings downward to a range of $5.25 billion to $5.30 billion, down from the previous projection of $5.45 billion to $5.55 billion. The news sent shockwaves through the market, leading to an 8% drop in the company's stock price. Bright Spots Amidst Adversity: Despite the setbacks, Take-Two Interactive's ( NASDAQ:TTWO ) mobile gaming division, Zynga, managed to find success with titles like "Match Factory!" and "Toon Blast." Better-than-expected in-app purchases and the promising performance of "Match Factory!" encouraged the company to ramp up marketing efforts for the title, betting on its long-term profitability. Moreover, analysts highlighted the strength of Take-Two Interactive's content pipeline as a key factor supporting its resilience amidst challenges. Analysts' Optimism and Future Prospects: While the short-term outlook may seem turbulent, analysts maintain a positive outlook on Take-Two Interactive's ( NASDAQ:TTWO ) long-term prospects. Jefferies Equity Research suggests that the stock may remain "range-bound" until the company provides more clarity on the release of "Grand Theft Auto VI," a highly anticipated installment in the acclaimed franchise. Goldman Sachs analysts echoed this sentiment, emphasizing the company's solid operating momentum and the potential realization of its content pipeline in the years ahead. Conclusion: Take-Two Interactive Software Inc., ( NASDAQ:TTWO ) finds itself at a crossroads, grappling with challenges such as game delays and lowered forecasts while navigating the dynamic landscape of the gaming industry. However, amidst adversity, the company retains several bright spots, including successful titles in its portfolio and optimism from analysts regarding its long-term trajectory. As investors await further developments, the resilience and strategic vision of Take-Two Interactive ( NASDAQ:TTWO ) will undoubtedly play a crucial role in shaping its future success.
NASDAQ:TTWOShort
by DEXWireNews
Flight Boarding - Grand Theft Auto 6Hey fellow gamers and number-crunchers, gather 'round! 🎮 Big news alert: Rockstar Games is dropping the first trailer for Grand Theft Auto 6 on December 5, 2023! twitter.com Now, for those who live and breathe gaming, no further explanation needed. But hey, to the data lovers and boomers in the house, let me break it down for you. Rockstar is the genius behind hits like Grand Theft Auto, Red Dead Redemption, Bully, and La Noire. Flashback to 2013 when they unleashed Grand Theft Auto 5, which turned out to be the best-selling console/PC-only game EVER. Talk about a gaming legend! Fast forward to now, and GTA 5 has racked up a mind-blowing 185 million units in sales by August 2023. That's across three console generations and PC, making it the cash cow of the entertainment world. Hold on to your controllers because Grand Theft Auto 6 is gearing up for launch, and the prediction is a whopping $1 billion in sales from the get-go! 🤑 Experts are betting on at least 25 million copies flying off the shelves on release day. For the financial gurus out there, I've got the deets on TTWO Rockstar Games history prices in my previous analysis. And if you're eyeing the market, the sweet spot for entering the trade seems to be at that red horizontal line at 146 - 150. But here's the cherry on top: I believe we're aiming for a new all-time high beyond 210! 🚀 So, who's ready for the next gaming revolution? 🌟 Share your thoughts below and let the positive vibes flow! 🚀🎉
Editors' picks
NASDAQ:TTWOLong
by GoldCartel
35
Take-Two Stock Surged in Anticipation of GTA 6 AnnouncementTake-Two Interactive shares surged as much as 9.4% in premarket trading Wednesday, as investors received the first confirmation that the next installment in the Grand Theft Auto franchise is on the horizon. The company is slated to report its fiscal second-quarter 2024 earnings after the bell. Take-Two has suggested it could launch in 2024. The company in May said it will enter its next phase of growth in fiscal 2025, which begins in April 2024, as it plans to “deliver several groundbreaking titles that we anticipate will set new standards of quality and success and enable us to deliver over $8 billion in Net Bookings and over $1 billion in Adjusted Unrestricted Operating Cash Flow.” GTA V was announced in 2011 and released in 2013. It remains popular 10 years later. The current release of the game, “Grand Theft Auto V,” is the second best-selling game of all time by units sold after Microsoft -subsidiary Mojang’s Minecraft. It’s developed by Take-Two subsidiary Rockstar. Rockstar’s franchises, which include Grand Theft Auto but also Red Dead Redemption, have helped fuel Take-Two’s share price growth and $23.16 billion market cap. Earlier this year, the company signaled that 2024 and beyond would be a “significant” period for the company. Investors and consumers alike have long awaited the release of the next Grand Theft Auto game. GTA V was lauded for its graphics and playing style, and to this day continues to contribute ongoing revenue to Take-Two through its online platform. In August, when the company reported its fiscal 2024 first-quarter earnings, total net bookings grew 20% year over year to $1.20 billion. Among the largest contributors, the company said in a release, were Grand Theft Auto Online and Grand Theft Auto V. Technical Analysist Price Momentum TTWO is trading near the top of its 52-week range and above its 200-day simple moving average. What does this mean? Investors have been pushing the share price higher, and the stock still appears to have upward momentum. This is a positive sign for the stock's future value.
NASDAQ:TTWOLong
by DEXWireNews
Take Two | TTWO & GTA VI. Part IITakeTwo Interactive is preparing for the biggest catalyst in the company's history with the release of GTA 6. Although no definitive timetable has been set for GTA 6, the game will almost certainly release in 2024 or 2025 at the latest given all the information that has come out. Moreover, TTWO itself has started opening up about GTA 6, which is a hint that an announcement is near. The impact that GTA 6 will have on TTWO cannot be understated, given how much resources have been spent developing GTA 6 and the growing consumer frenzy surrounding the title.TTWO could see more upward momentum as GTA 6's release closes in. GTA 6 is by far the most anticipated video game in the industry's history. The game is so hyped, in fact, that individuals have crashed televised events purely to protest for the release of GTA 6. Even Starfield, which is an incredibly hyped game in its own right, had it Gamescon presentation disrupted by a fan calling for GTA 6. GTA 6 has not even been announced yet, and it seems to have fully captured the attention of the gaming world. This level of organic hype is an incredibly positive sign for TTWO and its investors. Despite the fact that GTA 5 had nowhere near the hype as GTA 6 at similar stages in their development, GTA 5 still managed to become the best-selling triple A game ever made, with ~185 million units sold. This is a testament to GTA 6's potential, both on a commercial and even cultural standpoint. If GTA 6 manages to meet or exceed consumer expectations, TTWO should see its shares surge. Given the hysteria surrounding the title, positive reviews will only supercharge demand as consumers will likely find any reason to get their hands on the game. Considering the amount of resources TTWO is rumored to be spending on developing GTA 6, coupled with Rockstar's track record of producing masterpieces, there is very little chance that GTA 6 disappoints. While GTA is TTWO's most important IP, the company also boasts a strong lineup beyond GTA. In fact, some of its other franchises are bestsellers in their own right. Red Dead Redemption, for instance, has sold more than 55 million units and continues to sell at a solid pace despite the game being nearly 5 years old. Red Dead Redemption has also been critically praised as one of the best triple A games ever made. TTWO currently has one of its most robust product pipelines in the history of the company across all of its studios. The company has even diversified into mobile gaming, which is proving to be an increasingly large segment in the gaming industry. In fact, TTWO made a huge acquisition in Zynga for a whopping $12.7 billion. Zynga is one of the largest mobile gaming studios in the world and owns massively popular IPs like FarmVille. Despite TTWO's growing pipeline, the company is still relatively top-heavy compared to peers like EA (EA) or Activision Blizzard (ATVI). This means that underperformance for its flagship franchises, especially GTA, will almost certainly cause the company's value to plummet. So much of TTWO's future prospects are dependent upon the success of GTA 6, especially considering how much revenue the game is expected to pull in. To gain some perspective on how important the GTA franchise is for TTWO, GTA has generated over $8 billion in revenue since GTA 5's release in 2013. TTWO itself is only worth ~$23 billion. GTA online, for instance, still contributes heavily to the company's recurring revenue and bookings, which came in at $1.2 billion in its most recent quarter. TTWO has a huge opportunity with GTA 6. The game has garnered unprecedented hype that is starting to grow to a fever pitch. If TTWO delivers a solid sequel, GTA 6 could potentially deliver revenues upwards of ~$20 billion over the next decade, given the revenue trajectory of GTA sequels. At TTWO's current valuation of $23 billion, the company has far more upside, given the potential of GTA 6 and the company's growing pipeline of popular titles.
NASDAQ:TTWOLong
by moonypto
TTWO - 40 % Shorting Opportunity is Soon to Present Itself?Fundamental Indicators: Sector – Communication Services US Business Cycle Stage – late cycle, when this sector is neutral Revenue- consistently growing since 2015, average 5-year rate at 16% Profits – significantly dropped compared to 2021 by circa 60% Net margin - significantly dropped compared to 2021 to 4.26% P/E – extremely high at 131 compared to S&P500 with 21 Liabilities - debt ratio is at 0.46 which is within normal limits, Net Debt/ EBITDA is at 3.06 – no problems with debt Conclusion – it is very likely to continue correcting deeper Technical Analysis (Elliott Waves): Main scenario of this idea suggests that we are still observing development of the global growth cycle which is currently in the corrective stage of wave 4 (see higher timeframe graph) The bear move that has been developing since the historic high is likely to be just the first leg of this global wave 4 which can be counted as a complex WXY sequence. Where wave W is a double zig-zag, wave X is a Running Triangle, and wave Y has seen its W and X legs almost completed The target for the final wave Y is around $86 which is at the 0.618x Fibonacci retracement level of global wave 3 This is a higher timeframe to reflect the full history of TTWO and to provide full wave count: What do you think about TTWO and its short term prospects? Also let me know if you would like to see other stocks, indices, Forex or Crypto analysed using Elliott Waves. Thanks
NASDAQ:TTWOShort
by vitalalyt
1
TTWO Entering Underbought Territory in Potential Swing Play TTWO stock grew by +3.71% on Friday , stock opened at $132.13 and closed at $136.41, stock is working below 20 EMA shows that stock is bearish in nature and RSI is at 38 that shows stock is at best place to make an fresh entry. For better risk and reward make entry in this stock when it cross 20 EMA in daily chart. You can invest in this stock for short as well as long run. The average traded volume of this stock is 1.969M/day. The current market cap of this company is $15.749B. They will report fourth quarter and fiscal year 2022 ended March 31, 2022, after the market close on Monday, May 16, 2022.
NASDAQ:TTWO
by Technalysis1
Take Two to Move Higher? Take-Two Interactive - Short Term - We look to Buy a break of 174.44 (stop at 168.88) Daily signals are bullish. A bullish reverse Head and Shoulders has formed. Buying continued from the 61.8% pullback level of 164.18. The trend of higher lows is located at 163.50. The bias is still for higher levels and we look for any dips to be limited. A move through 174.00 will confirm the bullish momentum. Our profit targets will be 187.22 and 193.96 Resistance: 178.13 / 195.00 / 200.00 Support: 171.00 / 164.00 / 150.00 Disclaimer – Saxo Bank Group. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis, like any and all indicators, strategies, columns, articles and other features accessible on/though this site (including those from Signal Centre) are for informational purposes only and should not be construed as investment advice by you. Such technical analysis are believed to be obtained from sources believed to be reliable, but not warrant their respective completeness or accuracy, or warrant any results from the use of the information. Your use of the technical analysis, as would also your use of any and all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features. Please also be reminded that if despite the above, any of the said technical analysis (or any of the said indicators, strategies, columns, articles and other features accessible on/through this site) is found to be advisory or a recommendation; and not merely informational in nature, the same is in any event provided with the intention of being for general circulation and availability only. As such it is not intended to and does not form part of any offer or recommendation directed at you specifically, or have any regard to the investment objectives, financial situation or needs of yourself or any other specific person. Before committing to a trade or investment therefore, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and (where available) read the relevant product offer/description documents, including the risk disclosures. If you do not wish to seek such financial advice, please still exercise your mind and consider carefully whether the product is suitable for you because you alone remain responsible for your trading – both gains and losses.
NASDAQ:TTWOLong
by Saxo
Sunday Prep 7/25 - $TTWO Short & Long 2 ways I see to play this ticker (yes, that’s slightly punny). 1. Short a pop back into the underside of the quarterly pivot/50d/monthly pivot area if it can shove up there quickly. 2. Wait for a break below 166.61 and then look to join trend. If we lose that 161.33 low, I really feel like this has the ability to come all the way down to retest that 140 breakout level from way back. Make sure you understand when I discuss these bigger moves, I’m not referring to near-term, but more likely to take a month or 2 to play out.
NASDAQ:TTWOShort
by TrueTraderOfficial
Grand Theft Auto 6Take-Two owns Rockstar Games and has developed and published many notable games, including its most famous Grand Theft Auto series, Red dead redemption, Mafia series, and a few other big games, including 2K. Last month, Rockstar announced Grand Theft Auto V expanded and enhanced Edition for Sony PS5, Xbox Series X, and will launch on November 11, 2021. Based on the previous game's announcement and release, Rockstars games always gives a significant push to TTWO. (Charts attached below) Technical analysis: - Based on my chart, I believe TTWO will have a big announcement in November 2021 (maybe they will announce Grand Theft Auto 6) and most likely will continue the rally beyond $200. - Currently, a Potential Head and Shoulder pattern may fall to retest the bottom trend line. It is pretty safe to short sell it down to the major bottom trendline, then start to invest long-term once the price retests the major bottom trendline. Grand Theft Auto 5 announced Grand Theft Auto 5 Released Red Dead Redemption 2 Announced Red Dead Redemption 2 Released Grand Theft Auto 5 New Generation Consoles Announcement
NASDAQ:TTWOLong
by GoldCartel
4
Take Two InteractiveMission: THE FUTURE IS IN YOUR HANDS The interactive entertainment industry is today's most dynamic segment in all of entertainment. Creativity and innovation are among the core tenets of our organization and are integral drivers of our continued success. Recent News: 1. NEW YORK--(BUSINESS WIRE)--Mar. 16, 2021-- 2K made a hole in one today by announcing the Company has agreed to an exclusive, long-term partnership with Tiger Woods, one of the most iconic and celebrated figures in golf history. In addition, 2K announced it has entered into a definitive agreement to acquire privately-held HB Studios Multimedia Ltd., developers of the critically acclaimed and commercially successful PGA TOUR® 2K21, as well as The Golf Club franchise. The acquisition is expected to close in the first calendar quarter of 2021, subject to customary closing conditions. Financial terms of both deals were not disclosed. 2. NEW YORK--(BUSINESS WIRE)--Mar. 23, 2021-- 2K today announced the Company has acquired HookBang, LLC’s Austin-based video game division that will become part of Visual Concepts, the distinguished, wholly-owned studio and developer of the iconic NBA® 2K video game franchise. Financial terms were not disclosed. 3. Rockstar/2k Summer.... What do you think? Like Follow Agree Disagree
NASDAQ:TTWOLong
by Redimere_91
TakeTwo maybe taking a break #stocksDespite having a bullish bias in the overall market, I will always look for potential short opportunities to offset long equity exposure. TTWO looks like it might be a decent reversal play to the downside after breaking the uptrend line that comes from the previous range breakout. I am not bearish on he company or the video game sector, but there is always sector rotation and this stock could be a victim in the near term. It was definitely a COVID play but as vaccines are being distrusted, there could be a little less demand at the margin for video games even if the secular trend is still positive. Not sure if we will retest the range high and I am not sure if I want to hold the short into earnings but to sell here with a stop above the highs at 212 might be a trade worth taking
NASDAQ:TTWOShort
by IngenuityTrading
The market always gives new opportunitiesThis time, is in the gaming industry. I missed the breakout in NASDAQ:TTWO so now I'm watching NASDAQ:ATVI very closely ($ATVI has a better YTD than NASDAQ:EA ). This time I think I will catch the breakout, all my rules are been followed: good buying volume, price above key MAs and good divergence with the RSI. This is almost to perfect to miss, but as always anything can happen so I will wait for it. Even so, as the market it's been to volatile I won't buy to aggressively.
NASDAQ:ATVILong
by dpuleo19