7 Best Entertainment Stocks To Buy According to Analysts

5. Take-Two Interactive Software, Inc. (NYSE:TTWO)

Average Upside Potential: 19.15%

Number of Hedge Fund Holders: 48

Take-Two Interactive Software, Inc. (NYSE:TTWO) is a leading multi-platform developer, publisher, and marketer of video games globally. Its products are designed for console gaming systems, PC, smartphones, and tablets. These products are delivered through physical retail, digital download, online platforms, and cloud streaming services. The company is headquartered in New York City.

Take-Two Interactive Software, Inc. (NYSE:TTWO) is focusing on interactive entertainment, the strongest growth segment of the entertainment industry. Some of the strategic advantages to the firm’s growth include a diverse multiplatform portfolio of industry-leading titles and owned intellectual property spanning key genres, leading global marketing and sales distribution, and best-in-class service capabilities. Additionally, the future market opportunity across the global video game market is vast.

For the first quarter of its fiscal year 2025, total net bookings grew 1% to $1.22 billion as compared to $1.20 billion during the prior-year period. The largest contributors to these bookings were NBA 2K24, Grand Theft Auto Online and Grand Theft Auto V, Empires & Puzzles, and Match Factory! among others. GAAP net revenue increased 4% to $1.34 billion while recurrent consumer spending which accounted for 82% of total GAAP net revenue, increased 3%.

The gaming industry is presenting the company with strong secular tailwinds, with an estimated 3.4 billion global video game players and 88 billion mobile game downloads in 2023 as well as the mobile and tablet market hitting approximately $136 billion in 2023 gross bookings. Thus, Take-Two Interactive Software, Inc. (NYSE:TTWO) is positioned for a long-term trajectory of growth considering the firm’s aforementioned strengths and industry prospects.