Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Take-Two Interactive (TTWO) , which belongs to the Zacks Gaming industry.When looking at the last two reports, this publisher of "Grand Theft Auto" and other video games has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 93.18%, on average, in the last two quarters.For the most recent quarter, Take-Two was expec ...

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Core Insights - Sea Limited (SE) and Take-Two Interactive (TTWO) are significant players in the global gaming industry, with differing scales and focuses [1] - The mobile gaming market is projected to reach $256.2 billion by 2030, growing at a 10.2% CAGR, providing a long-term growth opportunity for both companies [2] Sea Limited (SE) - Garena, Sea Limited's gaming division, has shown a rebound in Q3 2025, with bookings increasing by 51% year over year to $840.7 million and adjusted EBITDA rising by 48% [5] - Despite recent performance, Garena's growth is heavily reliant on the Free Fire franchise, which poses risks if player engagement declines [3][6] - The company's costs have increased significantly, with revenue costs rising nearly 44% year over year due to higher royalty and platform fees, raising concerns about margin stability [4] - The Zacks Consensus Estimate for SE's Q1 2026 earnings is $1.24 per share, reflecting an 8.1% decrease over the past 30 days, while the full-year estimate has been revised down to $5.64 per share, indicating a 3.3% decline [7][8] Take-Two Interactive (TTWO) - Take-Two reported record net bookings of $1.96 billion in fiscal Q2 2026, a 33% increase year over year, and raised its full-year net bookings outlook to $6.4-$6.5 billion [10] - The company benefits from a strong portfolio of franchises, including Grand Theft Auto and NBA 2K, with recurrent consumer spending rising by 20% and accounting for approximately 73% of bookings [10][11] - The future pipeline includes major titles like Grand Theft Auto VI, which is expected to enhance long-term growth prospects [11] - The Zacks Consensus Estimate for TTWO's fiscal Q3 and Q4 2026 earnings remains stable at 83 cents and 41 cents, respectively, with a strong track record of exceeding earnings expectations [13][14] Stock Performance Comparison - Over the past six months, Sea Limited shares have declined by 20.7%, while Take-Two Interactive shares have increased by 4.2%, indicating a divergence in market performance [14] - Sea Limited's stock is trading below the 50-day moving average, suggesting limited near-term upside, whereas Take-Two's shares are above this average, indicating a bullish trend [17][21] Conclusion - Sea Limited's growth is constrained by its reliance on Free Fire and rising costs, while Take-Two Interactive's diversified portfolio and strong recurrent spending position it as a superior long-term growth stock [23]

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is one of the stocks Jim Cramer shed light on. A caller asked if a successful launch of GTA VI could give the share price a boost. In response, Cramer said: “Absolutely. Absolutely. It’s the greatest entertainment franchise of all time. I think you can buy some here and buy some a little lower. Strauss Zelnick will deliver for you. He will.” Photo by Saad Chaudhry on Unsplash Take-Two Interactive Software, Inc. (NASDAQ:TTWO) creates video games for con ...

Core Insights - Take-Two Interactive is positioned for significant growth within the $200 billion video game industry, with its stock having increased by 586% over the past decade, largely driven by the success of Grand Theft Auto [1][2] Financial Performance - Take-Two's stock is approaching new highs following impressive financial results, having outperformed the S&P 500 since 2022 with a 123% increase compared to the S&P 500's 68% gain [2] - The company is expected to achieve record financial results in the coming years, indicating potential for continued stock price increases [2] - Take-Two's gross margin stands at 52.66%, and the company has seen a turnaround in free cash flow, which reached $192 million over the trailing 12 months, a significant improvement from negative free cash flow a year prior [6] Revenue Generation - A key factor in Take-Two's investment appeal is its year-round revenue generation from recurrent consumer spending, which accounts for over 70% of its non-GAAP revenue and grew by 20% year over year in the recent quarter [4] - The company's bookings surged by 33% year over year in the recent quarter, significantly outpacing the industry's expected growth of 3% [7] Future Growth Catalysts - The anticipated launch of Grand Theft Auto VI in 2026 is expected to drive substantial growth, with analysts projecting bookings to exceed $9 billion by the end of fiscal 2028, up from $6.5 billion expected for fiscal 2026 [9] - Free cash flow is projected to exceed $2 billion by fiscal 2028, compared to $132 million expected for fiscal 2026 [9] Strategic Execution - Take-Two is executing a long-term strategy to expand its game lineup, particularly leveraging existing franchises with dedicated fan bases, which is reflected in its recent financial performance [10]

Core Insights - Take-Two Interactive Software, Inc. (TTWO) is a leading global video-game publisher with a market cap of $45.6 billion, known for franchises like Grand Theft Auto and NBA 2K [1][2] - The company has a strong digital distribution business and operates through key labels including Rockstar Games, 2K, and Zynga [1][2] Financial Performance - TTWO's quarterly revenue increased by 31.1% year-over-year to $1.8 billion, exceeding consensus estimates [5] - Non-GAAP EBITDA for the quarter reached $116.7 million, and operating cash flow improved to $83.7 million from a negative $319.4 million in the prior year [5] - Year-to-date, TTWO shares rose 34.3%, outperforming the Dow Jones Industrial Average's YTD gains of 12.2% [4] Stock Performance - TTWO shares have slipped 6.6% from their 52-week high of $264.79, while the stock has dipped marginally over the past three months [3] - Despite a recent decline of 8.1% following the announcement of a delay in Grand Theft Auto VI, the company remains influential in the gaming industry [5][6] Competitive Landscape - In comparison, Electronic Arts Inc. (EA) has shown a 21.9% gain over the past year but has outperformed TTWO with a 39.1% increase year-to-date [6]

Core Insights - Sea Limited's digital entertainment segment, Garena, shows strong financial performance but is increasingly reliant on a few key titles, particularly Free Fire, which poses long-term risks if player engagement declines [1][2] Financial Performance - In Q3 2025, Digital Entertainment bookings increased by 51% year-over-year, marking Garena's best performance since 2021, primarily driven by successful collaborations with popular franchises like Squid Game and NARUTO SHIPPUDEN [2] - The Squid Game "Red Light, Green Light" challenge was played over 300 million times, indicating that event-led monetization is crucial for revenue growth [2] - Revenue growth is largely attributed to increased spending per user, while player growth remains stagnant [3] Cost Structure - Digital Entertainment's cost of revenues rose nearly 44% year-over-year due to higher payment fees and IP-related royalties associated with Free Fire's live-operations strategy [3] Competitive Landscape - Garena faces stiff competition from major players like Take-Two Interactive and Roblox, which have established diverse game portfolios and strong user engagement models [5][6][7] - Take-Two Interactive reported a 33% year-over-year increase in game revenues to $1.64 billion in Q2 fiscal 2026, highlighting its competitive strength [6] - Roblox's user-generated content model and advanced safety systems contribute to its rapid growth and appeal among younger audiences, making it a formidable competitor [7] Valuation and Estimates - Sea Limited's stock has increased by 17.4% over the past year, compared to a 26.9% growth in the broader Zacks Computer & Technology sector [8] - The stock is currently trading at a forward price-to-earnings ratio of 24.35, lower than the sector average of 29.07 [12] - The Zacks Consensus Estimate for Sea Limited's 2025 earnings is $3.60 per share, reflecting a 114.29% increase compared to 2024, although it has decreased by 6.2% over the past 30 days [15][16]

Core Insights - Sea Limited's recent earnings report indicates strong revenue growth of 38.3% year over year, despite missing earnings expectations by 24.27% with earnings of 78 cents per share [1][8] - The company maintains solid long-term growth prospects across its three main business segments: Shopee, Monee, and Garena, which are driving user growth and monetization [2] Segment Performance - Shopee achieved significant growth with e-commerce revenues increasing by 35% year over year to $4.3 billion, supported by a 28.4% rise in Gross Merchandise Value (GMV) [3] - Monee's revenues surged by 61% year over year, driven by increased financial adoption and healthy credit quality, with SPayLater usage expanding significantly [4] - Garena experienced a strong rebound, with bookings rising by 51.1% year over year and revenues increasing by 31.2%, reflecting improved user engagement and monetization [5] Stock Performance - Sea Limited's shares have increased by 37.1% year to date, outperforming the Internet-Software industry (4.8%) and the broader Computer and Technology sector (23.6%) [6] - The stock has also outperformed peers such as AudioEye, Workday, and Meta Platforms, which have seen lower or negative returns [6] Analyst Sentiment - The Zacks Consensus Estimate for fourth-quarter 2025 earnings is $1.01 per share, indicating a strong year-over-year growth of 62.9% [10] - The first-quarter 2026 earnings estimate has also increased to $1.49 per share, reflecting a year-over-year growth of 73.26% [11] Competitive Landscape - Increasing competition in Southeast Asia from JD.com and in Latin America from MercadoLibre poses challenges for Sea Limited [13][14] - In digital entertainment, Garena faces competition from Take-Two Interactive, which could impact its long-term growth trajectory [15]

Core Insights - Take-Two Interactive Software, Inc. (TTWO) is a leading video game developer and publisher with a market cap of $43.4 billion, known for franchises like Grand Theft Auto and Max Payne [1] Performance Overview - TTWO has outperformed the broader market, with stock prices increasing by 27.7% year-to-date and 29.5% over the past 52 weeks, compared to the S&P 500 Index's gains of 14.5% in 2025 and 13.2% over the past year [2] - However, TTWO has lagged behind the VanEck Video Gaming and eSports ETF, which saw a 32.7% increase in 2025 and 38.9% returns over the past year [3] Recent Financial Results - Following the Q2 results released on November 6, TTWO's stock prices fell by 8.1% due to the delay in the launch of Grand Theft Auto VI, despite impressive financial performance [4] - The company's revenue for the quarter rose by 31.1% year-over-year to $1.8 billion, exceeding market expectations, and it reported a non-GAAP EBITDA of $116.7 million [4] - Cash flow from operations for the first two quarters of 2026 was $83.7 million, a significant improvement from a negative $319.4 million in the same period last year [4] Future Projections - Analysts project an adjusted EPS of $1.46 for the full fiscal 2026, representing a 160.7% year-over-year increase, with a strong earnings surprise history [5] - The consensus rating among 27 analysts is a "Strong Buy," with 21 "Strong Buys," three "Moderate Buys," and three "Holds" [5] Analyst Ratings - UBS analyst Christopher Schoell maintained a "Buy" rating on TTWO and raised the price target from $285 to $292, indicating a 17.6% premium to current price levels [7] - The mean price target of $276.37 suggests a potential upside, while the street-high target of $316 indicates a notable 34.5% upside potential [7]

Core Insights - Take-Two Interactive (TTWO) reported quarterly earnings of $1.46 per share, exceeding the Zacks Consensus Estimate of $0.91 per share, and up from $0.66 per share a year ago [1] - The earnings surprise was +60.44%, and the company has surpassed consensus EPS estimates in all four quarters over the past year [2] - Revenues for the quarter reached $1.96 billion, surpassing the Zacks Consensus Estimate by 12.93%, and up from $1.47 billion year-over-year [3] Earnings Performance - The earnings surprise of +60.44% indicates strong performance compared to expectations, with a previous quarter surprise of +125.93% [2] - The company has consistently outperformed consensus revenue estimates, achieving this in three out of the last four quarters [3] Stock Performance - Take-Two shares have increased by approximately 38.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 15.6% [4] - The stock's future price movement will depend on management's commentary during the earnings call and the sustainability of earnings expectations [4] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.79 on revenues of $1.49 billion, and for the current fiscal year, it is $2.86 on revenues of $6.11 billion [8] - The favorable trend in earnings estimate revisions prior to the earnings release has resulted in a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [7] Industry Context - The Gaming industry, to which Take-Two belongs, is currently ranked in the top 33% of over 250 Zacks industries, suggesting a favorable environment for stock performance [9]