Last Updated: 15 Sep 2024
Executive Summary
Take-Two Interactive Software Inc. (TTWO) is a leading video game holding company with a market capitalization of $26.67 billion. The company has a strong financial position with an EBITDA of $487.8 million and a PEGRatio of 6.08. However, the company's profitability metrics are weak, with a profit margin of -0.703% and a return on equity of -0.509%. The company's revenue growth is also slowing, with quarterly revenue growth of only 0.042% year-over-year. The latest stock price is $152.18, which is below the analyst target price of $180.55.
Company Overview
Take-Two Interactive Software, Inc. is an American video game holding company based in New York City. The company owns two major publishing labels, Rockstar Games and 2K, which operate internal game development studios. The company's portfolio of games includes some of the most popular video game franchises in the world, such as Grand Theft Auto, Red Dead Redemption, and BioShock.
Fundamental Analysis
Take-Two Interactive Software Inc.'s financial performance has been mixed in recent years. The company's revenue has grown steadily, but its profitability has declined. The company's profit margin has been negative for the past two years, and its return on equity has been negative for the past three years. The company's financial leverage is also high, with a debt-to-equity ratio of 1.5.
Technical Analysis
Take-Two Interactive Software Inc.'s stock price has been in a downtrend since the beginning of the year. The stock price is currently below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is also below 50, which indicates that the stock is oversold.
Short Term Outlook
The short-term outlook for Take-Two Interactive Software Inc. is negative. The company's stock price is in a downtrend, and its technical indicators are bearish. The company's financial performance is also weak, and its profitability metrics are declining.
Long Term Outlook
The long-term outlook for Take-Two Interactive Software Inc. is more positive. The company has a strong portfolio of video game franchises, and its financial position is solid. The company is also well-positioned to benefit from the growing global video game market.
Analyst Recommendations
The majority of analysts have a buy rating on Take-Two Interactive Software Inc. The average analyst target price is $180.55, which represents a potential upside of 18.6% from the current stock price.
