5 Epic Video Game Stocks to Buy Now

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

Number of Hedge Fund Shareholders: 69

Topping the list is Take-Two Interactive Software, Inc. (NASDAQ:TTWO), which has one of the most popular gaming franchises in the world under its belt in Grand Theft Auto. Some of the company’s other popular franchises include Red Dead, Mafia, BioShock, Mafia, Civilization, and Max Payne.

Take-Two is poised for a big 2023, with more than 20 major titles scheduled for release, in addition to 40 mobile games. It’s possible Grand Theft Auto VI could be among the titles released next year, which would provide another massive boost for the company, as GTA V has sold over 170 million copies worldwide, including 20 million in the past year, nearly a decade after its release. The company’s bottom-line is expected to recover next year as a result after taking a hit in 2022 after Take-Two bought Zynga for $12.7 billion.

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) hit an all-time high in hedge fund ownership during Q2, with funds bullish on the company’s acquisition of mobile developer Zynga. Ric Dillon’s Diamond Hill Capital and Gil Simon’s SoMa Equity Partners were among the funds to build large new stakes in TTWO during Q2.

Madison Funds is bullish on Take-Two Interactive Software, Inc. (NASDAQ:TTWO)’s stable of high-quality games and how the changing dynamics of the gaming industry favor the company going forward, as detailed in the fund’s 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.”

For more of the latest stock picks worth considering for your portfolio, check out the Biggest Computer Hardware Companies In the World and the 10 Best Stagflation Stocks To Buy.

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