4. Take-Two Interactive Software Inc. (NASDAQ:TTWO)
Number of Hedge Fund Holders: 48
Take-Two Interactive Software Inc. (NASDAQ:TTWO) is a prominent American video game holding company based in New York City. It specializes in developing, publishing, and marketing interactive entertainment products for consumers worldwide. The company operates through well-known brands such as Rockstar Games, 2K, Private Division, and Zynga, which cater to various gaming platforms including consoles, PCs, and mobile devices. The company’s wide range of games are delivered through physical retail, digital downloads, online platforms, and cloud services.
The company reported solid performance in the first quarter of fiscal year 2025, with total net bookings rising to $1.22 billion, a 1% increase from the previous year. Net bookings from recurrent consumer spending accounted for 83% of total net bookings. Key contributors to net bookings included popular titles like NBA 2K24, Red Dead Redemption, and Grand Theft Auto Online. The company’s net revenue saw a 4% increase year-over-year, reaching $1.34 billion. Recurrent consumer spending increased by 3% and accounted for 82% of the total revenue.
Take-Two Interactive Software Inc. (NASDAQ:TTWO) is committed to engaging players through exciting new game releases and updates. The company is focused on enhancing its core franchises while also looking for new growth opportunities. On September 6, 2024, the company announced the launch of NBA 2K25, the latest iteration of its popular basketball video game series. This new version is available on multiple platforms, including PlayStation 5, PlayStation 4, Xbox Series X|S, Xbox One, Nintendo Switch, and PC. NBA 2K25 introduces significant gameplay enhancements powered by ProPLAY technology, featuring over 9,000 new animations derived from real NBA footage. The game also includes exciting new modes in MyTEAM and The City, along with returning favorites and new role-playing experiences in MyCAREER and MyNBA, offering players a richer and more immersive basketball gaming experience.
As of October 7, TTWO’s stock is trading at $152.21, and analysts have a consensus buy recommendation for the stock. The median 1-year stock price target set by analysts is $185.00, indicating a potential upside of 21.54% from its current price. This presents a promising investment opportunity for those looking to capitalize on the future of interactive entertainment.
Take-Two Interactive Software Inc. (NASDAQ:TTWO) has a strong portfolio of well-established franchises with a loyal customer base, consistently driving sales and engagement. The company’s commitment to providing regular updates and new content helps maintain player interest and satisfaction, ensuring a steady stream of revenue from both new releases and ongoing content. This strategic approach allows the company to benefit from the growing video games market.
TTWO is one of the best gaming stocks to buy now. According to Insider Monkey’s Q2 database of over 900 hedge funds, 48 hedge funds held stakes in Take-Two Interactive Software Inc. (NASDAQ:TTWO).
