TTWO

Take-Two Interactive Software, Inc.

TMT


Presented:12/15/2021
Price:$171.15
Cap:$19.73B
Current Price:$156.05
Cap:$27.35B

Presented

Date12/15/2021
Price$171.15
Market Cap$19.73B
Ent Value$15.18B
P/E Ratio35.37x
Book Value$30.12
Div Yield0%
Shares O/S115.30M
Ave Daily Vol1,273,361
Short Int1.93%

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. The company was founded by Ryan A. Brant in 1993 and is headquartered in New York, NY.

Publicly traded companies mentioned herein: Take-Two Interactive Software Inc (TTWO)

Highlights

The presenter is long shares of Take-Two Interactive Software Inc (TTWO) based on his bullish outlook for the video game console industry and TTWO’s combination of strong core games and a robust upcoming slate of titles. The stocks related to the video game console space have underperformed for a long time and market sentiment is negative despite strong engagement. Unlike some other COVID categories that have unwound, console engagement appears to have maintained its strength. Steam data shows that current players are at all-time highs; while PC and console are not perfect comparisons (i.e., console is slightly more casual), if PC engagement is at all-time highs, it is unlikely that console engagement is far off its highs. This creates an attractive setup for TTWO going into next year. He models a base case EPS of $7.50 next year (vs. consensus $6.70) and assumes a slight multiple expansion to yield a $220 price target.

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Idea Discussion

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