5 Best Tech Stocks To Buy Now According To Billionaire Steve Cohen

Page 5 of 5

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

Point72 Asset Management’s Stake Value: $189.103 million

Percentage of Point72 Asset Management’s 13F Portfolio: 0.79%

Number of Hedge Fund Holders: 66

During Q2, Point72 increased its stake in Take-Two Interactive Software, Inc. (NASDAQ:TTWO) by 735%, holding 1.54 million of its shares, valued at $189.1 million. TTWO touched the peak of its popularity among hedge funds tracked by Insider Monkey during the most recent quarter, with 66 hedge funds holding a stake in TTWO.

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) announced its latest quarterly earnings results on August 8, reporting an EPS of $0.74 and actual revenue of $1 billion, both below the market consensus. On September 6, while keeping a Buy rating on the shares, Truist analyst Matthew Thornton reduced his price target for Take-Two from $162 to $157.

Here is what Arch Capital has to say about Take-Two Interactive Software, Inc. in its Q4 2021 investor letter:

Take-Two Interactive is an American video game publisher of franchises like Grand Theft Auto (GTA), Red Dead Redemption (RDR), and NBA 2K. It is currently one of the larger positions in the fund at an 8.3% allocation.

We are bullish on Take-Two because we believe the company has competitive advantages that will keep its franchises relevant for many years. First, its games have distinct network effects that keep it insulated from competitors. Multiplayer online games are only fun if others are also playing them, creating a winner-take-all effect that has specifically benefited GTA and NBA 2K over the last decade.

On top of network effects, Take-Two has decades of developmental expertise and over 5,000 developers across its divisions, giving it semi-strong economies of scale that insulate it from most competitors. Yes, large competitors like Microsoft or any mega-cap company could invest the dollars to get to this developer count, but it is impossible for a smaller studio to make games as immersive and at as quick of a pace as Take-Two does for its customers. They just don’t have the scale…” (Click here to see the full text)

You can also take a look at 10 Medical Marijuana Stocks To Buy Now and 10 Stocks That Billionaire Rob Citrone Is Selling

Page 5 of 5