6 Best Video Game Stocks To Invest In

2. Take-Two Interactive (NASDAQ:TTWO)  

Number of Hedge Fund Investors: 48

Take-Two Interactive (NASDAQ:TTWO) is a leading American video game company known for publishing popular titles like Grand Theft Auto, Red Dead Redemption, and NBA 2K. The company operates through two key labels: Rockstar Games and 2K Games.

As the video game business model has evolved over the years, Take-Two Interactive (NASDAQ:TTWO) has successfully adapted to these changes. The company has developed a proven business model that relies on franchise titles and microtransactions to generate revenue. Take-Two Interactive’s (NASDAQ:TTWO) focus on high-quality storytelling, and immersive gameplay has made it a favourite among gamers. The company also offers live gameplay, which offers recurring revenue through in-game purchases and downloadable content. The rising cost of developing AAA games is a concern. However, Take-Two Interactive (NASDAQ:TTWO)  has offset this cost by relying on its franchise titles and microtransactions.

Take-Two Interactive (NASDAQ:TTWO) has a proven business model and valuable intellectual properties, the company’s Grand Theft Auto 6 (GTA 6) is expected to release in 2026 and the company has forecast $8 billion in revenue and $1 billion in operating cash flow for FY2026.

Industry analysts have a consensus for stock’s Buy rating, with a median price target of $180.55, suggesting a potential upside of almost 16.48% from current levels. As of the second quarter 48 hedge funds own stakes in the company valued at $2.36 billion. According to Insider Monkey’s hedgefund database. Tiger Global Management LLCis the largest shareholder, with stakes worth $877.51 million.