Shares of Take-Two Interactive Software ( NASDAQ:TTWO) slumped on Thursday following a mixed fiscal third quarter. Take-Two fell short of revenue expectations while producing higher earnings than anticipated. The recently announced delay of Red Dead Redemption 2 could also be weighing on the stock, which was down about 11% at 3:35 p.m. EST.
Full Answer
Is Take-Two a great long-term value stock?
Despite the declining stock price, Take-Two's financial position is sound and is delivering on three powerful strategies to deliver long-term value to shareholders. By having a long-term view, prudent and patient investors hold a lot to gain from this video game behemoth.
What do analysts expect from taketake-two stock in 2022?
Take-Two expects to report full-year revenue between $3.41 billion and $3.46 billion for fiscal 2022 (which ended in March). That is slightly up from last year's $3.37 billion. Analysts expect adjusted earnings per share to come in at $4.94, down from $6.58 in fiscal 2021.
Is Take-Two Interactive’s stock underperforming the S&P 500?
It has been about a month since the last earnings report for Take-Two Interactive (TTWO). Shares have lost about 9.4% in that time frame, underperforming the S&P 500.
What does Take-Two Interactive's acquisition of Zynga mean for the market?
Take-Two Interactive ( TTWO -0.14% ) announced Monday that it plans to purchase mobile games publisher Zynga ( ZNGA -1.47% ), and the market is apparently bearish on the deal. Take-Two's share price was down by roughly 14.5% as of 11:55 a.m. ET. According to the company, it will pay $12.7 billion in cash and stock for Zynga.
Is Take-Two a good stock to buy?
Take-Two is in the best position to grow profits In short, there is big return potential in Take-Two shares at the current share price, and that's why Take-Two is high on my buy list right now.
How can I invest in Take 2?
How to buy shares in Take-Two Interactive SoftwareCompare share trading platforms. Use our comparison table to help you find a platform that fits you.Open your brokerage account. ... Confirm your payment details. ... Research the stock. ... Purchase now or later. ... Check in on your investment.
Is Take-Two profitable?
GAAP net income increased 46% to $588.9 million , or $5.09 per diluted share, as compared to $404.5 million , or $3.54 per diluted share, in fiscal year 2020.
Who owns Take 2 Interactive?
Ryan Ashley BrantTake-Two Interactive was founded by Ryan Ashley Brant, the son of media executive and Interview co-owner Peter Brant.
What happened
Take-Two Interactive ( TTWO -0.14% ) announced Monday that it plans to purchase mobile games publisher Zynga ( ZNGA -1.47% ), and the market is apparently bearish on the deal. Take-Two's share price was down by roughly 14.5% as of 11:55 a.m. ET.
So what
With growth stocks -- and video game stocks in particular -- generally in the midst of a steep decline, investors may think this is not the right time for Take-Two Interactive to be making big acquisitions. Thus far, Monday is looking broadly like another day of steep pullbacks for growth-dependent technology stocks.
Now what
The market is sending a clear signal that it thinks that Take-Two Interactive is overpaying for Zynga, but I think the deal stands a good chance of working out over the long term. Take-Two has been gearing up to make a bigger play in the mobile games category, and this acquisition should help the company significantly accelerate this initiative.
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Key Points
Sales are expected to decline this year thanks to a tough comparison with 2020, plus a few delayed releases of new games.
NASDAQ: TTWO
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What happened
Take-Two Interactive ( TTWO 3.52% ) shareholders lost ground this week. The video game developer's stock was down 10% through the market close Thursday while the S&P 500 was up by 1%, according to data provided by S&P Global Market Intelligence.
So what
Take-Two on Monday afternoon revealed strong operating results for its fiscal first quarter, which ended June 30. Thanks to robust demand for titles like NBA 2K21 and Grand Theft Auto Online, sales only dipped slightly compared to the booming revenue the company booked in the prior-year period.
NASDAQ: TTWO
But Wall Street was more interested in the developer's stagnant outlook for the rest of 2021. The company's forecast seemed worse in comparison to that of rival Activision Blizzard ( ATVI 0.37% ), which later in the week raised its own fiscal year forecast.
Now what
Take-Two is still predicting a return to sales growth next year following a modest decline in 2021. And it's good news that management is aiming to get its titles right rather than releasing shoddy content sooner.
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What is Take Two's revenue in 2021?
Take Two Interactive Software reported fourth-quarter fiscal 2021 earnings of $1.88 per share , up 75.7% year over year.#N#Net revenues increased 10.4% year over year to $839.4 million driven by increase in net bookings, partially offset by higher operating expenses.#N#Grand Theft Auto (GTA) Online and GTA V, NBA 2K20 and NBA 2K21, Red Dead Redemption 2 and Red Dead Online, Borderlands 3, Sid Meier’s Civilization VI, Social Point’s mobile offerings, and NBA Online were the biggest contributors to the company’s fourth-quarter fiscal 2021 top line.#N#Markedly, digital revenues (89.7% of revenues) increased 18.7% year over year to $753.3 million. Meanwhile, Physical retail and other segment revenues (10.3% of revenues) declined 31.5% year over year to $86.2 million.#N#Recurrent consumer spending (virtual currency, add-on content and in-game purchases, including the allocated value of virtual currency and add-on content incorporated in special editions of certain games) increased 38% year over year and accounted for 67% of total revenues.
What is the 2K21 game mode?
Additionally, PGA TOUR 2K21 released the Clubhouse Pass Season 2 and launched its newest game mode, Divot Derby, which features a battle golf style competition where players can compete with up to 20 other players. WWE 2K Battlegrounds released its fifth and final roster update.
