Should I Buy Take-Two Interactive (TTWO)? Finance YouTuber Analysis

The YouTuber has had Take-Two Interactive on his watch list for a long time, noting its strong cash flow and the upcoming release of Grand Theft Auto in 2025. He believes that companies with blockbuster sequels tend to perform very well.

“This is a stock that I picked back like 8 years ago and I think they have really strong cash flow and their franchise Grand Theft Auto, you might have heard of it, is having a release in 2025 as well as they had a Civilization game and basically anytime a company has like a blockbuster sequel, they're going to do very well.”

The analyst recommends avoiding Take-Two Interactive, noting it has reported a loss over the last year and its revenue growth is primarily due to acquisitions rather than organic expansion. He believes the company, like others in the middle tier of the gaming industry, faces challenges with inconsistent business models and high development costs without the benefit of platform control or niche market advantages.

“I would not be paying a price to earnings multiple of over 30 for a company that's not growing and does not have a powerful position in the market.”

The YouTuber is buying Take-Two Interactive due to its strong game titles like Grand Theft Auto and NBA 2K, which he believes are now in 'value territory' after a recent sell-off. He highlights the company's strong cash position, upcoming game releases, and potential for acquisitions to drive future growth. Analysts have a price target significantly higher than the current price.

“Take Two was down 10 on a second quarter release but I think it puts these firmly in value territory for that long-term story.”