Core Insights - Take-Two Interactive Software, Inc. (TTWO) is valued at a market cap of $48 billion and is a prominent player in the global video game publishing and development industry, generating revenue through various channels including digital and physical game sales, in-game purchases, subscriptions, and licensing [1] Financial Performance - Analysts anticipate TTWO to report a profit of $0.48 per share for fiscal Q2 2026, reflecting an 84.6% increase from $0.26 per share in the same quarter last year [2] - For fiscal 2026, the expected profit is projected at $1.38 per share, marking a 146.4% increase from $0.56 per share in fiscal 2025, with further growth expected to $7.49 per share in fiscal 2027, representing a 442.8% year-over-year increase [3] Stock Performance - TTWO shares have increased by 65.9% over the past 52 weeks, significantly outperforming the S&P 500 Index's 15.1% return and the Communication Services Select Sector SPDR Fund's 28.4% rise during the same period [4] Recent Developments - On August 7, TTWO reported Q1 results that exceeded expectations, with total revenue rising 12.4% year-over-year to $1.5 billion and total net bookings increasing 16.8% to $1.4 billion. The company raised its fiscal 2026 net bookings guidance to between $6.1 billion and $6.2 billion [5] Analyst Ratings - Wall Street analysts maintain a highly optimistic outlook on TTWO, with an overall "Strong Buy" rating. Out of 27 analysts, 21 recommend "Strong Buy," three suggest "Moderate Buy," and three indicate "Hold." The mean price target for TTWO is $268.37, suggesting a potential upside of 3.1% from current levels [6]

Core Viewpoint - Morgan Stanley identifies Pinterest as a stock pick due to strong earnings revisions, indicating a favorable environment for stock selection amid rising stock-specific risks [1][2]. Group 1: Stock Selection Environment - Stock-specific risks have increased recently, creating a historically opportunistic environment for stock picking [1]. - Analysts' opinions on company earnings prospects are becoming more varied, contributing to a dispersion of earnings revision breadth [2]. Group 2: Earnings Revisions and Stock Performance - Research indicates that positive earnings revisions can lead to stock gains, with companies that exceed earnings expectations consistently outperforming those that fall short [3]. - Morgan Stanley's stock screen focuses on companies with strong earnings revision momentum, highlighting Pinterest, Reddit, Take-Two Interactive, Burlington Stores, and Carvana as top picks [4]. Group 3: Sector Updates - In the restaurant sector, pricing is restrained while promotional activity is high; the gaming and leisure sector, particularly cruises, is experiencing healthy demand [6]. - Analysts expect improvements in freight-related companies over the next six months [6]. - The technology sector shows continued strength in AI, with challenges in traditional storage and server capacities; within internet companies, agentic AI is gaining traction in e-commerce [6]. - In consumer finance, there is ongoing degradation at the low end of the market, but this trend is not spreading [6].

Core Insights - Take-Two Interactive Software (TTWO) is experiencing strong investor enthusiasm, with stock trading at record highs due to successful game releases and upcoming titles [1][4] - Analysts have raised price targets for TTWO stock, indicating confidence in the company's future performance [4][5] Financial Performance - Take-Two's stock was down nearly 1% at $259.23, after reaching an all-time high of $264.79 [2] - The company is expected to report fiscal second-quarter results on November 6, with analysts predicting adjusted earnings of 94 cents per share and net bookings of $1.72 billion, reflecting year-over-year growth of 43% in earnings and 17% in net bookings [3] Game Releases and Expectations - The fiscal year 2026 is viewed as a transitional year for Take-Two, highlighted by the anticipated release of "Grand Theft Auto 6" and "GTA Online 2" [3] - Current strong engagement is noted for "NBA 2K26" and mobile games, although recent titles like "Borderlands 4" and "Mafia: The Old Country" have underperformed [2][4] Analyst Ratings and Market Position - Benchmark analyst Mike Hickey reiterated a buy rating on TTWO, raising the price target to $300 from $275 [1] - BofA Securities analyst Omar Dessouky also maintained a buy rating, increasing the price target to $295 from $285, citing potential for continued positive performance [4]

Company Performance - Take-Two Interactive (TTWO) closed at $256.68, with a +1.87% increase from the previous day, outperforming the S&P 500's daily gain of 1.56% [1] - Over the past month, TTWO shares gained 2.32%, while the Consumer Discretionary sector lost 5.13% and the S&P 500 gained 0.41% [1] Upcoming Earnings - The earnings report for Take-Two Interactive is expected on November 6, 2025, with projected earnings per share (EPS) of $0.91, reflecting a 37.88% increase from the same quarter last year [2] - Revenue is projected to be $1.74 billion, indicating a 17.71% increase compared to the same quarter of the previous year [2] Annual Estimates - For the annual period, Zacks Consensus Estimates anticipate earnings of $2.82 per share and revenue of $6.11 billion, signifying increases of +37.56% and +8.13%, respectively, from the last year [3] Analyst Estimates - Recent changes to analyst estimates for Take-Two Interactive reflect the latest near-term business trends, with positive revisions indicating optimism about the business outlook [3][4] - The Zacks Rank system, which considers estimate changes, provides a rating system for investors [4] Zacks Rank and Performance - The Zacks Rank system ranges from 1 (Strong Buy) to 5 (Strong Sell), with 1 stocks delivering an average annual return of +25% since 1988 [5] - Currently, Take-Two Interactive holds a Zacks Rank of 3 (Hold) [5] Valuation Metrics - Take-Two Interactive has a Forward P/E ratio of 89.25, indicating a premium compared to its industry's Forward P/E of 23.88 [6] - The company has a PEG ratio of 2.61, while the industry average PEG ratio is 1.82 [6] Industry Overview - The Gaming industry, part of the Consumer Discretionary sector, has a Zacks Industry Rank of 61, placing it in the top 25% of all 250+ industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Group 1 - The video gaming industry is experiencing significant changes, particularly highlighted by the Electronic Arts Inc. (EA) deal [1] - The studio behind the popular FIFA franchise is at the center of these industry shifts [1] Group 2 - Moz Farooque, a seasoned market analyst, leads the research on these developments, combining financial journalism with modeling to identify investment opportunities [1]

Group 1 - The video gaming industry is experiencing significant changes, particularly highlighted by the Electronic Arts Inc. (EA) deal related to the FIFA franchise [1] - Moz Farooque, a seasoned market analyst, leads the research efforts, combining financial journalism with modeling to identify investment opportunities [1] Group 2 - The article emphasizes the importance of understanding market dynamics and shifts within the gaming sector to uncover potential investment risks and opportunities [1]

Group 1 - Take-Two Interactive Software is now the only significant pure-play American video game company publicly traded after Electronic Arts announced its privatization [1] - The privatization of EA at $210 per share by a consortium of private equity firms highlights the scarcity value of Take-Two in the market [1] - Investors seeking traditional video game publishers now have limited options, primarily focusing on Take-Two or the Japanese market [1] Group 2 - Take-Two develops, publishes, and markets video games across various platforms, with popular franchises including Grand Theft Auto, Red Dead Redemption, NBA 2K, and WWE 2K [2]

Grand Theft Auto 6 isn’t just another run-of-the-mill video game. For anyone familiar with the product, it has all the potential to become a once-in-a-generation event for its parent company, Take-Two Interactive  (TTWO) . CEO Strauss Zelnick fittingly calls it “the most anticipated entertainment property of all time.” Analysts expect GTA 6 to sell tens of millions of copies, generating over $3 billion in its first year, which would set it up as the most lucrative entertainment launch in history. Unsurp ...

Take-Two Interactive (TTWO) closed at $260.50 in the latest trading session, marking a +1.37% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.38%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq lost 0.67%. Prior to today's trading, shares of the publisher of "Grand Theft Auto" and other video games had gained 3.3% outpaced the Consumer Discretionary sector's loss of 2.35% and lagged the S&P 500's gain of 4.06%.Market participants will be closely following the financial r ...

Group 1: Take-Two Interactive - Take-Two Interactive has seen a 70% increase in stock price over the last year, with a current market cap of $47 billion [3] - The company owns the highly valuable Grand Theft Auto franchise, which has sold over 215 million copies of Grand Theft Auto V since its launch in 2013 [3] - The anticipated release of Grand Theft Auto VI on May 26, 2026, is expected to drive significant financial results, with analysts projecting bookings to reach $9.1 billion in fiscal 2027 [7] - In the most recent quarter, Take-Two's net bookings grew 17% year over year to $1.4 billion, with in-game spending accounting for 83% of total bookings [5][6] - Analysts expect Take-Two to generate $6.1 billion in bookings for fiscal 2026, with earnings per share projected to reach $10.26 by fiscal 2028, three times the expected earnings for the current year [4] Group 2: Spotify Technology - Spotify Technology's shares have surged 90% over the last year, driven by strong user growth and financial performance [8] - Monthly active users have increased from 433 million in Q2 2022 to 696 million in Q2 2025, with a goal of reaching 1 billion users [9] - The introduction of AI features, such as the AI DJ, has significantly enhanced user engagement and contributed to the growth of premium subscriptions, which are the primary revenue source for the company [10][11] - Spotify reported a 53% year-over-year increase in operating profit last quarter, with analysts forecasting an annualized earnings per share growth rate of 33% [12]