For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Take-Two Interactive (TTWO) ten years ago? It may not have been easy to hold on to TTWO for all that time, but if you did, how much would your investment be worth today?
Take-Two Interactive's Business In-Depth
With that in mind, let's take a look at Take-Two Interactive's main business drivers.
Based in New York City, Take Two Interactive Software is a leading developer and publisher of video games.
Take Two’s games can be played on video consoles, personal computers, mobile devices and tablets. The company earns revenues from the sale of disk-based video game products (known as packaged goods), downloadable contents (DLCs), subscription, micro-transactions and advertising.
Take Two reported net revenues of $5.35 billion for fiscal 2024. Game revenues accounted for 87.7% while the rest came from advertising.
The U.S. accounted for 61% of revenues while the rest came from international operations. Channel-wise, digital online contributed 96% to net revenues, while the rest came from Physical retail and other segment.
The company develops and publishes games through Rockstar Games, 2K, Private Division, Social Point and Playdots. The company acquired Zynga in May, 2022.
Rockstar publishes Grand Theft Auto (GTA) and Red Dead Redemption among others.
GTA’s latest instalment, Grand Theft Auto V, has sold-in over 185 million units worldwide and includes access to Grand Theft Auto Online while Red Dead Redemption 2 sold more than 55 million units worldwide.
2K’s internally owned and published franchises include BioShock, Mafia, XCOM and Sid Meier's Civilization. It also publishes externally developed franchises such as Borderlands. Moreover, 2K’s realistic sports simulation titles include NBA 2K series, the WWE 2K series, and the Golf Club.
Take Two's Private Division is the publisher of Kerbal Space Program.
Social Point develops and publishes popular free-to-play mobile games that include Dragon City and Monster Legends.
Take Two has development studios in Australia, Canada, China, Czech Republic, Hungary, India, Spain, the United Kingdom and the United States.
The company sells games both physically and digitally through direct relationships with large retail customers and third-party distributors.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Take-Two Interactive, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in May 2015 would be worth $9,653.94, or an 865.39% gain, as of May 2, 2025, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 165.81% and the price of gold went up 163.05% over the same time frame.
Looking ahead, analysts are expecting more upside for TTWO.
Take-Two Interactive is benefiting from continued strength in gaming revenues, partially offset by sluggishness in advertising revenues. Management expects solid demand for well-known game franchises like Grand Theft Auto (GTA) and Red Dead Redemption. The acquisition of Zynga established Take-Two as one of the largest publishers of mobile games. The deal unified Take-Two's top-class portfolio of PC and console games, and Zynga’s leading mobile franchises. Shares of the company have outperformed the industry in the past year. However, rising operating expenses might have weighed on bottom-line growth. Stiff competition from the likes of EA and ATVI is also a major headwind. The company continues to invest heavily in product development and advertising to win market share. This is likely to hurt profitability in the near term.
Shares have gained 12.56% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2025 compared to none lower. The consensus estimate has moved up as well.
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Take-Two Interactive Software, Inc. (TTWO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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