Take-Two (TTWO) AI Stock Analysis

• Market Cap: $40.75B
• Dividend Yield: N/A
• Average Volume (3M): 2.67M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: 5.31%
• EPS Growth: -15.57%
• Country: US
• Employees: 12,371
• Sector: Communication Services
• Sector Strength: 83
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 1.07
• Shares Outstanding: 177,424,910
• 10 Day Avg. Volume: 2,723,559
• 30 Day Avg. Volume: 2,665,578
• PEG Ratio: 0.47
• Price to Book (P/B): 18.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -188.78
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 1.97
• Enterprise Value/Gross Profit: 14.09
• Enterprise Value/Ebitda: -4.89
• 1Y Price Target: $257.76
• Price Target Upside: 11.57% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

• Rating: 57 Neutral
• Price Target: $235.00 ▲(1.72%Upside)

Take-Two's overall score reflects significant financial challenges and negative valuation metrics. However, strong earnings call results and strategic initiatives, like the recent stock offering, provide a positive outlook. Technical indicators suggest potential upward momentum, but financial performance remains a major concern.

Positive Factors

Earnings

TTWO reported strong F4Q results as GTA Online, Zynga, and particularly NBA 2K outperformed.

Future Releases

Announcing several highly anticipated titles to be released in 2025.

Game Franchises

TTWO has strong game franchises including NBA 2K, Grand Theft Auto (GTA), and Red Dead Online.

Negative Factors

Launch Delays

The practical effect of Take-Two delaying the launch of Grand Theft Auto VI is that the company guided substantially below consensus estimates for FY:26.

Monetization Challenges

Slower than expected monetisation ramp-up of new games which could affect the time spent on games and lead to slower revenue growth.

Underperformance

The February launch of Civilization VII underperformed the company's targets, leading to the more modest F4Q beat vs. expectations.

Take-Two Business Overview & Revenue Model

Company Description

Take-Two Interactive Software, Inc. develops, publishes, and markets interactive entertainment solutions for consumers worldwide. The company offers its products under the Rockstar Games, 2K, Private Division, and T2 Mobile Games names. It develops and publishes action/adventure products under the Grand Theft Auto, Max Payne, Midnight Club, and Red Dead Redemption names; and offers episodes and content, as well as develops brands in other genres, including the LA Noire, Bully, and Manhunt franchises. The company also publishes various entertainment properties across various platforms and a range of genres, such as shooter, action, role-playing, strategy, sports, and family/casual entertainment under the BioShock, Mafia, Sid Meier's Civilization, XCOM series, and Borderlands. In addition, it publishes sports simulation titles comprising NBA 2K series, a basketball video game; the WWE 2K professional wrestling series; and PGA TOUR 2K. Further, the company offers Kerbal Space Program, OlliOlli World, and The Outer Worlds and Ancestors: the Humankind Odyssey under Private Division; and free-to-play mobile games, such as Dragon City, Monster Legends, Two Dots, and Top Eleven. Its products are designed for console gaming systems, including PlayStation 4 and PlayStation 5; Xbox One; the Nintendo's Switch; personal computers; and mobile comprising smartphones and tablets. The company provides its products through physical retail, digital download, online platforms, and cloud streaming services. Take-Two Interactive Software, Inc. was incorporated in 1993 and is based in New York, New York.

How the Company Makes Money

Take-Two generates revenue primarily through the sale of video games, which includes both physical and digital formats. A significant portion of its income comes from the initial sale of game titles, as well as ongoing purchases of additional content such as downloadable content (DLC), in-game purchases, and virtual currency. The company also benefits from recurrent consumer spending, which continues to grow as players engage with online components and multiplayer features. Key partnerships with console manufacturers, digital storefronts, and retail distributors play a crucial role in expanding the reach of its games. Additionally, Take-Two earns revenue from licensing and intellectual property agreements, allowing third parties to create additional content or products based on its game franchises.

Take-Two Financial Statement Overview

Summary

Take-Two faces significant financial challenges with negative EBIT and net income, despite a healthy gross profit margin. The company's balance sheet shows increased leverage, and cash flows are negative, indicating inefficiencies in cash generation.

Income Statement

Take-Two's income statement shows significant challenges, with negative EBIT and net income in recent years. The company experienced a notable revenue growth from 2022 to 2023 but faced a decline in EBIT and net income margins. Gross profit margin remains healthy but is overshadowed by large operating losses.

Balance Sheet

The balance sheet reflects a moderate position, with a manageable debt-to-equity ratio and a decrease in stockholders' equity over time. The equity ratio has reduced, indicating increased financial leverage, posing potential risks if not managed.

Cash Flow

Cash flow analysis reveals challenges with negative operating and free cash flows in recent periods. The free cash flow growth rate is concerning, and cash flow ratios indicate inefficiencies in converting net income into cash.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
5.63B	5.35B	5.35B	3.50B	3.37B
	Gross Profit
3.06B	2.68B	2.29B	1.97B	1.84B
	EBIT
-4.39B	-3.59B	-1.13B	473.60M	629.38M
	EBITDA
-4.26B	507.50M	656.80M	690.56M	876.29M
	Net Income Common Stockholders
-4.48B	-3.74B	-1.12B	418.00M	588.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.48B	776.00M	1.01B	2.55B	2.73B
	Total Assets
9.18B	12.22B	15.86B	6.55B	6.03B
	Total Debt
4.11B	3.53B	3.49B	250.22M	191.27M
	Net Debt
2.63B	2.78B	2.66B	-1.48B	-1.23B
	Total Liabilities
7.04B	6.55B	6.82B	2.74B	2.70B
	Stockholders Equity
2.14B	5.67B	9.04B	3.81B	3.33B
Cash Flow		Free Cash Flow
-214.60M	-157.80M	-203.10M	99.34M	843.39M
	Operating Cash Flow
-45.20M	-16.10M	1.10M	257.98M	912.32M
	Investing Cash Flow
-151.50M	-28.20M	-2.88B	139.22M	-806.72M
	Financing Cash Flow
650.50M	-91.40M	1.93B	-256.81M	-57.34M

Take-Two Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 231.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTWO, the sentiment is Positive. The current price of 231.03 is above the 20-day moving average (MA) of 228.33, above the 50-day MA of 220.27, and above the 200-day MA of 189.54, indicating a bullish trend. The MACD of 2.04 indicates Positive momentum. The RSI at 56.43 is Neutral, neither overbought nor oversold. The STOCH value of 82.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TTWO.

Take-Two Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTES	79 Outperform	$78.58B	18.11	23.93%	2.19%	1.26%	6.84%
RBLX	73 Outperform	$61.01B	―	-460.30%	―	30.24%	27.61%
EA	70 Outperform	$37.23B	34.83	16.13%	0.51%	-0.81%	-9.28%
BILI	66 Neutral	$7.54B	―	-4.29%	―	21.11%	87.93%
PLTK	63 Neutral	$1.82B	13.01	-220.61%	8.23%	1.64%	-32.31%
Sector *	61 Neutral	$14.35B	5.84	-4.31%	3.69%	2.75%	-35.67%
TTWO	57 Neutral	$40.75B	―	-114.76%	―	5.31%	-15.57%

Take-Two Corporate Events

Take-Two Completes $1.04 Billion Stock Offering

On May 20, 2025, Take-Two Interactive Software, Inc. announced the pricing of an underwritten public offering of 4,750,000 shares of its common stock at $225.00 per share, with an option for underwriters to purchase an additional 712,500 shares. The offering, which closed on May 22, 2025, is expected to generate net proceeds of approximately $1.04 billion, or $1.19 billion if the option is fully exercised, intended for general corporate purposes including debt repayment and future acquisitions. This strategic move is likely to impact Take-Two’s financial flexibility and market positioning, potentially benefiting stakeholders by supporting growth initiatives.

The most recent analyst rating on (TTWO) stock is a Buy with a $194.00 price target. To see the full list of analyst forecasts on Take-Two stock, see the TTWO Stock Forecast page.

Take-Two Announces Record Net Bookings Expectations

On May 2, 2025, Take-Two Interactive Software, Inc. announced its expectations for record levels of net bookings in fiscal years 2026 and 2027. The company also revealed that Rockstar Games’ highly anticipated Grand Theft Auto VI is now scheduled for release on May 26, 2026, instead of the previously expected fall 2025. This delay is intended to allow Rockstar Games to fully realize its creative vision for the game. Take-Two plans to report its fourth-quarter and fiscal 2025 results on May 15, 2025, with a conference call to discuss these results.