5 Best Entertainment Stocks to Buy

2. Take-Two Interactive Software, Inc. (NASDAQ:TTWO)

Number of Hedge Fund Holders: 66

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is an American video game creator. The most significant franchises in the company’s portfolio include the BioShock series, Grand Theft Auto, Red Dead, and NBA 2K.

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is one of the best entertainment stocks due to its entry into the fast-growing metaverse with Grand Theft Auto 6. The game is expected to release in 2024. To put things into perspective, the series has made over $7 billion since the release of its last game, Grand Theft Auto V. 

According to the Insider Monkey database, 66 hedge funds had a stake in Take-Two Interactive Software, Inc. (NASDAQ:TTWO), valued at over $2 billion, compared to 58 hedge funds in the previous quarter with a combined stake value of $1.548 billion. In Q2, Viking Global increased its holdings in the company by 240% and was the most significant shareholder of the company with approximately 2 billion shares, worth $245 million.

Here is what Madison Funds specifically said about Take-Two Interactive Software, Inc. (NASDAQ:TTWO) in its Q2 2022 investor letter:

“Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is a leading publisher of video games. Take-Two has a reputation for the high quality of its games, having published industry favorites such as Grand Theft Auto and NBA2K.

The video game industry itself has shed much of its boom-and-bust patterns to become a steadier, more predictable business with high barriers to entry, established title franchises, and high levels of recurring, in-game revenue streams. The company has been investing heavily to step up the number of new title launches over the next few years, a favorable set-up which we believe is not fully reflected in its stock price.”