Take-Two Stock: Is it a Buy Today?
The video game market has experienced significant growth over the past decade. Market researcher
Fortune Business Insights recently projected that the global gaming market would reach $545 billion by
2028. That would represent a CAGR of 13% over the forecast period.
Take-Two Interactive (NASDAQ:TTWO) is a top video game holding company. It owns the publishing
houses Rockstar Games, which is behind the Grand Theft Auto and Red Dead franchises, as well as 2K,
which owns the NBA 2K series as well as Bioshock and Borderlands. Shares of Take-Two have dropped
31% in 2022 as of mid-afternoon trading on June 30.
This company released its fourth quarter and full-year fiscal 2022 results on May 16. In Q4 FY2022, net
revenue increased 11% to $930 million. Meanwhile, net income nearly halved to $111 million or $0.95
per diluted share. For the full-year, GAAP net revenue posted growth of 4% to $3.50 billion. Meanwhile,
it delivered GAAP net income of $418 million or $3.58 per diluted share – down from $588 million or
$5.09 per diluted share in fiscal 2021.
Total net bookings fell 4% to $3.41 billion in fiscal 2022. Predictably, the biggest contributors to its
bookings were the NBA 2K franchise and Grand Theft Auto Online, Grand Theft Auto V, Red Dead Online,
and Red Dead Redemption 2.
Shares of this stock are still trading in favourable value territory compared to its industry peers. The
company is still geared up for strong earnings growth going forward.
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