8 Best Esports Stocks to Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 48

Take-Two Interactive Software Inc. (NASDAQ:TTWO) is a major American video game holding corporation. It owns well-known labels like Rockstar Games and 2K, featuring popular franchises such as Grand Theft Auto, Red Dead Redemption, and NBA 2K. The company also has a stake in the NBA 2K League, a professional esports league created in partnership with the NBA, which enhances its presence in the growing esports market.

In the first quarter of fiscal year 2025, the company reported total net bookings of $1.22 billion, which is a 1% increase year-over-year. A significant portion of this revenue comes from recurrent consumer spending, which accounted for 83% of total bookings. Titles like NBA 2K24 and Grand Theft Auto Online continue to drive strong performance, showcasing Take-Two’s (NASDAQ:TTWO) ability to maintain player engagement through popular games.

On September 6, 2024, Take-Two Interactive Software Inc. (NASDAQ:TTWO) announced the launch of NBA 2K25, introducing advanced gameplay features powered by ProPLAY technology. The game features more than 9,000 new animations derived from real NBA footage. This new version of the game includes exciting new modes, enhancing the gaming experience for players. Such innovations not only attract new users but also keep existing players invested in the franchise.

With its established brands and focus on engaging players through innovative releases, Take-Two Interactive Software Inc. (NASDAQ:TTWO) presents a compelling investment opportunity in the esports market. The combination of a loyal customer base and ongoing growth strategies positions the company well for future success.

Over the past 5 years, the corporation has grown its revenue at a compound annual growth rate (CAGR) of 13%.

Analysts are bullish on TTWO. Analysts currently hold a consensus buy rating on the stock and the 1-year median price target of $185.00 set by analysts indicates a potential upside of more than 15% from current levels.

As of the second quarter of 2024, Take-Two Interactive Software Inc. (NASDAQ:TTWO) was held by 48 hedge funds, according to Insider Monkey’s database.