We recently compiled a list of the 5 Gaming Stocks That Are Solid Bets Despite Tariffs. In this article, we are going to take a look at where Take-Two Interactive Software Inc. (NASDAQ:TTWO) stands against the other gaming stocks.
As Trump made his move regarding tariffs on multiple trade partners, many stocks with international exposure took a dive. Gaming stocks were also negatively impacted. We decided to take a look at some of the gaming stocks that traded down after the tariff announcement but continue to be solid investments.
The reason these stocks are not hugely impacted by tariffs is because of the nature of the business. Games developed by these companies have a huge fan following, which usually isn’t deterred by minor increases in price. Moreover, the digital nature of the products means enforcing tariffs isn’t as straightforward as it is on physical goods. On top of that, these companies sell to a global audience so tariffs even on a significantly big market base don’t impact the overall business as much.
To come up with our list of gaming stocks that are a good bet despite tariffs, we only considered stocks with a market cap of at least $5 billion.
A close-up of a hand holding a game controller, demonstrating the interactive entertainment of the company.
Take-Two Interactive Software Inc. (NASDAQ:TTWO)
Take-Two Interactive Software Inc. is an interactive entertainment solutions marketer, developer, and publisher. It sells its products through cloud streaming services, digital downloads, retail, and online platforms.
Take-Two Interactive’s investment thesis for the year revolves around the launch of GTA 6. The game is set to come out in the later part of the year but could easily rack up over a billion dollars in pre-orders before its launch. The excitement surrounding the release is unprecedented and likely to make a big mark on the gaming industry. Apart from the expected success of this version of GTA, there is also considerable excitement as to how TTWO implements its AI technologies in the game. There is no doubt the company has pricing power in this case. However, increasing the launch price could also help competition increase the prices of their games by anchoring against GTA 6, something that would help all the gaming companies. A $80 price point could be the sweet spot for TTWO, bringing in enough revenue while now allowing competition to raise the prices of their games.
TTWO was also a favorite pick of JP Morgan analysts for 2025. With large caps comfortably outperforming small and medium caps in the last 3 years in a row, the bank believes lower interest rates and lower tariff exposure could set up these stocks well for Trump’s first year in office.
Overall TTWO ranks 4th on our list of the gaming stocks that are solid bets despite tariffs. While we acknowledge the potential of TTWO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as TTWO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
