TTWO

Take-Two Interactive Software, Inc.

TMT


Presented:02/20/2020
Price:$115.13
Cap:$13.06B
Current Price:$156.05
Cap:$27.35B

Presented

Date02/20/2020
Price$115.13
Market Cap$13.06B
Ent Value$11.72B
P/E Ratio38.74x
Book Value$21.19
Div Yield0%
Shares O/S113.42M
Ave Daily Vol1,462,079
Short Int3.32%

Current

Price$156.05
Market Cap$27.35B
Take-Two Interactive Software, Inc. engages in the development, publishing, and marketing of interactive software games. Its products are designed for console systems, handheld gaming systems, and personal computers including smart phones and tablets; and are delivered through physical retail, digital download, online platforms, and cloud streaming services. It operates through the following geographical segments: United States, Europe, Asia Pacific, and Canada and Latin America. The company was founded by Ryan A. Brant in 1993 and is headquartered in New York, NY.

Publicly traded companies mentioned herein: Activision Blizzard Inc (ATVI), Amazon Inc (AMZN), CD Projekt SA (7CD GR), Microsoft Corp (MSFT), Sony Corp (SNE), Take-Two Interactive Software Inc (TTWO), Ubisoft Entertainment SA (UBI FP)

Highlights

The presenter is long shares of Take-Two Interactive Software Inc (TTWO). He believes that the combination of secular tailwinds for the video game industry, TTWO’s solid current and future IP, and a reset of earnings estimates, make for a compelling case to start building a position. Based on the company’s current run rate and content (GTA 5, GTA Casino, and Red Dead Redemption), the presenter believes that TTWO’s current EPS is $4.00. Using that $4.00 EPS estimate, applying a 20x multiple, and adding $20 in cash leads him to measure his downside case at $100 vs, the current $114. If the stock were to fall to $100 it would present a great buying opportunity because management has made it clear that new IP Is coming. The upside is that the company does launch new content, most likely GTA 6, and in that scenario TTWO could have $8.00 in earnings power. Applying the same 20x earnings multiple to that $8.00 gets the presenter to his price target of $180.00/share once GTA 6 launches. 

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.