We recently compiled a list of the 10 Best Gaming Stocks to Invest In According to Billionaires. 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.
The gaming industry has experienced significant changes over the past few years. During the COVID-19 pandemic, the sector saw remarkable growth as more people spent time indoors. However, this momentum did not continue after restrictions eased, which led to lower consumer spending on games and consoles. Economic uncertainties and challenges like inflation further impacted the industry, resulting in layoffs, studio closures, and project cancellations across the industry in 2024. Despite these setbacks, analysts are optimistic about a recovery supported by upcoming major releases.
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According to research firm Newzoo, video game consoles are expected to be the biggest growth driver in the market until 2027. The anticipated launches of GTA VI in fall 2025 and the new Switch console in summer 2025 are seen as key factors fueling a rebound. GTA V, the predecessor to GTA VI, is one of the most profitable games ever and has sold over 210 million by December 2024. Analysts believe new releases will encourage players to spend more on consoles and games. This could potentially reverse the industry’s recent slowdown.
According to the report by Newzoo, console software revenue is projected to increase 7% from 2024 to 2027 and outperform PC software revenue growth of 2.6%. By 2027, console revenue is expected to account for over 56% of the total PC and console software revenue of $92.7 billion. Total playtime increased by 6% in 2024 and Q4 saw the highest quarterly playtime thanks to blockbuster releases like the new Call of Duty title.
Emmanuel Rosier, director of market analysis at Newzoo, told Reuters that major console titles, such as Spider-Man and God of War, are driving engagement on consoles. He also pointed out that these AAA or AAAA releases have less impact on PC gamers, who prefer older titles.
Methodology
To compile our list of the 10 best gaming stocks to invest in according to billionaires, we looked for the largest gaming companies. We reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best gaming stocks. Next, we focused on the top 10 gaming stocks most favored by billionaires. Data for the number of billionaire investors for each stock was taken from Insider Monkey’s Q4 2024 database. Finally, the 10 best gaming stocks to invest in were ranked in ascending order based on the number of billionaires holding stakes in them as of Q4 2024.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close-up of a hand holding a game controller, demonstrating the interactive entertainment of the company.
Take-Two Interactive Software, Inc. (NASDAQ:TTWO)
Number of Billionaire Investors: 13
Number of Hedge Fund Holders: 67
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is an American developer, publisher, and marketer of video games primarily through its labels, Rockstar Games, 2K, and Zynga. The company’s games are designed for consoles, PC, and mobile. Some of its most popular product franchises are Grand Theft Auto, Red Dead Redemption, and NBA 2K. Take-Two Interactive Software, Inc. (NASDAQ:TTWO) ranks among the best gaming stocks to invest in.
On February 7, Goldman Sachs analyst Eric Sheridan raised the firm’s price target for Take-Two Interactive Software, Inc. (NASDAQ:TTWO) from $205 to $230 and maintained a “Buy” rating. Sheridan’s revised target is based on the earnings report and the management’s commentary. This update came after the company’s fiscal Q3 2025 earnings report. The company reported strong bookings growth driven by NBA 2K, offsetting weaker performance in the mobile segment. The management expressed confidence in the company’s ability to achieve record levels in fiscal years 2026 and 2027, supported by a robust content pipeline. The management team also highlighted plans to scale intellectual properties and leverage emerging distribution channels for growth. Notably, Take-Two Interactive Software, Inc. (NASDAQ:TTWO) reiterated the anticipated release of Grand Theft Auto VI in fall 2025 and provided solid timelines for other major titles like Mafia and Borderlands, which offered investors clarity on the content schedule.
Overall, TTWO ranks 5th on our list of the best gaming stocks to invest in according to billionaires. 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 time frame. If you are looking for an AI stock that is more promising than 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 is originally published at Insider Monkey.
