Take-Two (TTWO) AI Stock Analysis

• Market Cap: $39.92B
• Dividend Yield: N/A
• Average Volume (3M): 2.54M
• 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: 89
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 1.07
• Shares Outstanding: 177,424,910
• 10 Day Avg. Volume: 3,041,522
• 30 Day Avg. Volume: 2,536,332
• PEG Ratio: 0.47
• Price to Book (P/B): 18.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -80.89
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 14.07
• Enterprise Value/Ebitda: -5.68
• 1Y Price Target: $258.44
• Price Target Upside: 14.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18

• Rating: 57 Neutral
• Price Target: $235.00 ▲( 4.45% 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. (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 is facing significant financial challenges, with negative profitability and cash flow trends. The income statement shows a concerning decline in profitability, with a negative net profit margin and stagnant revenue growth. The balance sheet is moderately stable, with manageable leverage and a stable asset base funded by equity. However, declining stockholders' equity and assets pose challenges. Cash flow issues further highlight liquidity concerns, with negative free cash flow and operational cash deficits.

Income Statement

Take-Two's income statement shows significant financial challenges, with a notable decline in profitability. The TTM (Trailing-Twelve-Months) reflects a negative net profit margin of approximately -67.1%, indicating substantial losses. Revenue growth has been stagnant, with only a slight increase from the previous year, which is concerning given the competitive industry. Both EBIT and EBITDA margins are negative, further highlighting operational inefficiencies.

Balance Sheet

The balance sheet indicates a moderate financial position with a reasonable debt-to-equity ratio of approximately 0.18, suggesting manageable leverage. However, the decline in stockholders' equity over time points to potential challenges in value retention. The equity ratio stands at 45% for the TTM, indicating a stable asset base funded by equity. While there is some resilience, the overall decline in assets and equity over recent periods is a concern.

Cash Flow

Cash flow analysis reveals liquidity issues, with negative free cash flow in the TTM, reflecting cash outflows exceeding inflows. The operating cash flow to net income ratio is negative, which is troubling as it indicates operational cash deficits. The free cash flow growth rate is negative, underscoring a downward cash flow trend, which could hinder future investments and operations.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
5.45B	5.35B	5.35B	3.50B	3.37B	3.09B
	Gross Profit
2.85B	2.24B	2.29B	1.97B	1.84B	1.55B
	EBIT
-318.90M	-3.59B	-1.13B	473.60M	629.38M	425.27M
	EBITDA
-1.80B	-1.72B	656.80M	690.56M	876.29M	697.62M
	Net Income Common Stockholders
-3.66B	-3.74B	-1.12B	418.00M	588.90M	404.46M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.23B	776.00M	1.01B	2.55B	2.73B	2.00B
	Total Assets
12.68B	12.22B	15.86B	6.55B	6.03B	4.95B
	Total Debt
4.10B	3.53B	3.49B	250.22M	191.27M	177.25M
	Net Debt
2.90B	2.78B	2.66B	-1.48B	-1.23B	-1.18B
	Total Liabilities
6.98B	6.55B	6.82B	2.74B	2.70B	2.41B
	Stockholders Equity
5.70B	5.67B	9.04B	3.81B	3.33B	2.54B
Cash Flow		Free Cash Flow
-494.60M	-157.80M	-203.10M	99.34M	843.39M	632.29M
	Operating Cash Flow
-333.10M	-16.10M	1.10M	257.98M	912.32M	685.68M
	Investing Cash Flow
-143.40M	-28.20M	-2.88B	139.22M	-806.72M	4.05M
	Financing Cash Flow
608.80M	-91.40M	1.93B	-256.81M	-57.34M	-77.45M

Take-Two Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 224.99
• 50DMA: Positive
• 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 Neutral. The current price of 224.99 is below the 20-day moving average (MA) of 228.53, above the 50-day MA of 217.37, and above the 200-day MA of 186.18, indicating a neutral trend. The MACD of 3.27 indicates Positive momentum. The RSI at 50.45 is Neutral, neither overbought nor oversold. The STOCH value of 25.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$75.19B	17.20	23.93%	2.15%	1.26%	6.84%
EA	76 Outperform	$36.84B	34.59	16.13%	0.52%	-0.81%	-9.28%
RBLX	73 Outperform	$55.80B	―	-460.30%	―	30.24%	27.61%
BILI	65 Neutral	$7.72B	―	-4.29%	―	21.11%	87.93%
PLTK	63 Neutral	$1.69B	12.03	-220.61%	8.87%	1.64%	-32.31%
Sector *	61 Neutral	$14.08B	5.95	-4.18%	3.68%	2.79%	-36.29%
TTWO	57 Neutral	$39.92B	―	-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.