Take-Two (TTWO) AI Stock Analysis

• Market Cap: $41.67B
• Dividend Yield: N/A
• Average Volume (3M): 1.78M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: 5.31%
• EPS Growth: -15.57%
• Country: US
• Employees: 12,371
• Sector: Communication Services
• Sector Strength: 79
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.61
• Shares Outstanding: 184,467,160
• 10 Day Avg. Volume: 1,594,025
• 30 Day Avg. Volume: 1,780,660
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 6.97
• Enterprise Value/Gross Profit: 12.82
• Enterprise Value/Ebitda: -11.30
• 1Y Price Target: $259.24
• Price Target Upside: 14.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18

• Rating: 52 Neutral
• Price Target: $226.00 ▲(0.04% Upside)

The overall stock score is driven by significant financial and valuation challenges, counterbalanced by strong earnings performance and strategic financial moves. The company's promising game pipeline offers growth potential, but rising expenses and negative cash flows remain concerns.

Positive Factors

Future Performance Confidence

Analyst recommends an Overweight rating for Take-Two Interactive with a price target of $265, highlighting confidence in the company's future performance.

Recurring Revenue

Forecast predicts GTA Online will grow to $1.5 billion in annual bookings after GTA 6's release, showing potential for substantial recurring revenue.

Sales Potential

GTA 6 is expected to sell significantly more units than GTA 5 after its release, indicating strong market demand.

Negative Factors

Launch Challenges

Initial technical issues and lack of content at the launch of GTA Online indicate challenges that needed addressing for future growth.

Monetization Ramp-up

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

Take-Two Business Overview & Revenue Model

Company Description

Take-Two Interactive Software, Inc. (TTWO) is a leading developer, publisher, and marketer of interactive entertainment for consumers around the globe. The company operates through two primary business segments: Rockstar Games and 2K. Take-Two is known for its high-quality, immersive entertainment experiences and is responsible for some of the most successful video game franchises in history, including Grand Theft Auto, Red Dead Redemption, NBA 2K, and BioShock. Its products are designed for console gaming systems, PCs, and mobile devices, catering to a diverse audience of dedicated gamers.

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
EBITDA	-4.26B	507.50M	656.80M	690.56M	876.29M
Net Income	-4.48B	-3.74B	-1.12B	418.00M	588.90M
Balance Sheet
Total Assets	9.18B	12.22B	15.86B	6.55B	6.03B
Cash, Cash Equivalents and Short-Term Investments	1.48B	776.00M	1.01B	2.55B	2.73B
Total Debt	4.11B	3.53B	3.49B	250.22M	191.27M
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: 225.92
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 225.92 is below the 20-day moving average (MA) of 230.13, below the 50-day MA of 233.15, and above the 200-day MA of 205.91, indicating a neutral trend. The MACD of -3.27 indicates Positive momentum. The RSI at 42.37 is Neutral, neither overbought nor oversold. The STOCH value of 44.62 is Neutral, 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	85 Outperform	$83.20B	18.86	23.93%	2.17%	1.26%	6.84%
EA	76 Outperform	$40.28B	40.42	15.46%	0.48%	2.68%	-6.15%
RBLX	72 Outperform	$88.12B	―	-401.21%	―	27.39%	16.59%
BILI	69 Neutral	$9.49B	―	-4.29%	―	21.11%	87.93%
PLTK	61 Neutral	$1.66B	11.79	-220.61%	9.37%	1.64%	-32.31%
Sector *	55 Neutral	HK$63.39B	-0.67	-4.21%	5.33%	-2.16%	-18.87%
TTWO	52 Neutral	$41.67B	―	-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.