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
Ttwolong
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
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
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TTWO Juicy Entry [LONG]TTWO slipping further into that great value DCA zone in my opinion.
Trading around key support on longer and shorter timeframes. Indicators showing the stock to be very oversold with money flow at lows not seen in years.
Looking at the historical data and cyclic nature of TTWO looks like a great risk to reward entry.
** NOT INVESTMENT OR TRADING ADVICE **