Q2 Rundown: Take-Two (NASDAQ:TTWO) Vs Other Consumer Internet Stocks

As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the consumer internet industry, including Take-Two (NASDAQ:TTWO) and its peers.

The ways people shop, transport, communicate, learn and play are undergoing a tremendous, technology-enabled change. Consumer internet companies are playing a key role in lives being transformed, simplified and made more accessible.

The 50 consumer internet stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 4.2% while next quarter’s revenue guidance was 0.5% below.

Luckily, consumer internet stocks have performed well with share prices up 12% on average since the latest earnings results.

Take-Two (NASDAQ:TTWO)

Best known for its Grand Theft Auto and NBA 2K franchises, Take Two (NASDAQ:TTWO) is one of the world’s largest video game publishers.

Take-Two reported revenues of $1.50 billion, up 12.4% year on year. This print exceeded analysts’ expectations by 9.3%. Despite the top-line beat, it was still a slower quarter for the company with full-year EBITDA guidance missing analysts’ expectations.

Interestingly, the stock is up 11.3% since reporting and currently trades at $252.04.

Is now the time to buy Take-Two? Access our full analysis of the earnings results here, it’s free.

Best Q2: Skillz (NYSE:SKLZ)

Taking a new twist at video gaming, Skillz (NYSE:SKLZ) offers developers a platform to create and distribute mobile games where players can pay fees to compete for cash prizes.

Skillz reported revenues of $27.37 million, up 8.2% year on year, outperforming analysts’ expectations by 19.9%. The business had an incredible quarter with a solid beat of analysts’ EBITDA and paying monthly active users estimates.

The market seems happy with the results as the stock is up 11% since reporting. It currently trades at $7.37.

Is now the time to buy Skillz? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Coinbase (NASDAQ:COIN)

Widely regarded as the face of crypto, Coinbase (NASDAQ:COIN) is a blockchain infrastructure company updating the financial system with its trading, staking, stablecoin, and other payment solutions.

Coinbase reported revenues of $1.50 billion, up 3.3% year on year, falling short of analysts’ expectations by 4.3%. It was a disappointing quarter as it posted a significant miss of analysts’ number of monthly transacting users and EBITDA estimates.

Coinbase delivered the weakest performance against analyst estimates in the group. The company reported 8.7 million monthly active users, up 6.1% year on year. As expected, the stock is down 12.1% since the results and currently trades at $332.

Read our full analysis of Coinbase’s results here.

Electronic Arts (NASDAQ:EA)

Best known for its Madden NFL and FIFA sports franchises, Electronic Arts (NASDAQ:EA) is one of the world’s largest video game publishers.

Electronic Arts reported revenues of $1.67 billion, flat year on year. This print beat analysts’ expectations by 7.4%. Taking a step back, it was a slower quarter as it logged full-year EPS guidance missing analysts’ expectations and revenue guidance for next quarter missing analysts’ expectations significantly.

Electronic Arts had the weakest full-year guidance update among its peers. The stock is up 18.1% since reporting and currently trades at $174.55.

Read our full, actionable report on Electronic Arts here, it’s free.

Shutterstock (NYSE:SSTK)

Originally featuring a library that included many of founder Jon Oringer’s photos, Shutterstock (NYSE:SSTK) is now a digital platform where customers can license and use hundreds of millions of pieces of content.

Shutterstock reported revenues of $267 million, up 21.3% year on year. This result surpassed analysts’ expectations by 7.5%. It was a stunning quarter as it also produced an impressive beat of analysts’ EBITDA estimates.

The company reported 112.6 million service requests, up 237% year on year. The stock is up 6.6% since reporting and currently trades at $21.11.

Read our full, actionable report on Shutterstock here, it’s free.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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