Latest news with #Take-TwoInteractiveSoftware
Globe and Mail
29-07-2025
- Business
- Globe and Mail
Roblox vs. Take-Two: Which Gaming Stock Is in a Better Position Now?
Roblox Corporation RBLX and Take-Two Interactive Software, Inc. TTWO are two prominent players in the gaming industry, but they represent distinctly different approaches to growth and monetization. Roblox thrives on user-generated content and a social gaming ecosystem, largely driven by younger audiences. At the same time, Take-Two leans on blockbuster franchises like Grand Theft Auto and NBA 2K for recurring revenues. As both companies navigate evolving trends in digital entertainment, investors may be wondering which stock offers better upside in today's market environment. Let us break down the fundamentals, growth outlook and valuation to determine which gaming stock stands out as the stronger buy right now. Case for RBLX Roblox's recent performance has been aided by strong user growth, higher engagement and effective monetization strategies. Daily active users (DAUs) climbed 26% year over year in first-quarter 2025, nearing the 100-million mark. Engagement metrics also showed strength, with users spending more than 21.7 billion hours on the platform, representing a 30% increase. Notably, international expansion played a major role. India saw 77% growth in both DAUs and engagement hours, while Japan posted a 48% increase in DAUs. The company is also experiencing a demographic shift, with users aged 13 and older making up 62% of its DAUs, which management sees as a key monetization opportunity. Roblox is also seeing solid momentum on the creator side, with developer payouts up 39% year over year to $281 million. Initiatives such as price optimization and regional pricing for game passes have helped boost median creator earnings and improve the overall health of the ecosystem. The top 100 experiences by spending now include a growing number of newer titles, suggesting vibrant content creation. On average, the top 100 creators earned $6.7 million over the past 12 months, and more than 100 developers made at least $1 million, reflecting the platform's improving economic viability for content creators. Additionally, operational efficiency and innovation are driving margin and cash flow improvements. Cash from operations rose 86% and the free cash flow surged 123% in the first quarter, both surpassing the guidance. The company is leveraging AI for content moderation, code generation and 3D scene creation, enhancing both internal productivity and developer capabilities. These tools are expected to streamline development, reduce costs and support the long-term goal of capturing a larger share of the global gaming market. However, Roblox's reliance on discretionary consumer spending introduces some vulnerability in a macroeconomic slowdown. Although management cited historical resilience during downturns and emphasized the platform's low-cost entertainment value, a weakening consumer environment may temper booking growth. Case for TTWO Take-Two's growth momentum is underpinned by a strong lineup of evergreen franchises, and newly launched titles across console, PC and mobile platforms. The company's NBA 2K series remains a core pillar, benefiting from consistent innovation and deep consumer engagement across modes like MyTEAM and MyCAREER. This engagement focus has translated into increased user retention and spending. In parallel, WWE 2K and Civilization continue to expand their appeal, with recent releases introducing immersive features and receiving strong critical acclaim. Rockstar's enduring IPs — Grand Theft Auto and Red Dead Redemption — also continue to outperform expectations, highlighting the resilience of the company's premium content model. The mobile business, led by Zynga, remains another key growth lever. Zynga has demonstrated a unique ability to consistently generate mobile hits in a tough market. Titles like Match Factory and Color Block Jam have become profitable shortly after launch, thanks to compelling live operations and cross-studio collaboration. Take-Two is also gaining traction in direct-to-consumer mobile monetization, a strategy that reduces reliance on third-party app stores and improves margins. With a broad global user base and integrated first-party data assets, the company is well-positioned to scale its mobile offerings more efficiently than most peers. Take-Two's long-term outlook is supported by its extensive release pipeline, including highly anticipated titles like Grand Theft Auto VI, Borderlands 4, and Mafia: The Old Country. The company's approach balances annual sports titles with major narrative-driven games and mobile rollouts. Management is also investing in the latest technologies, such as VR and platform-specific adaptations, and broadening distribution through partners like Netflix and Nintendo. These efforts are designed to drive both top-line expansion and margin improvement as the pipeline matures. On the downside, the company is contending with elevated development expenses and an impairment charge related to revised expectations for one of its business units — likely Zynga. While management insists this is an accounting adjustment, it reflects some pressure in mobile forecasts. Additionally, guidance points to a plateau in recurrent spending from mobile and GTA Online, suggesting some softening in legacy monetization channels. Nonetheless, leadership remains confident that its upcoming slate will mark a financial turning point and reset the company's growth trajectory. How Does Zacks Consensus Estimate Compare for RBLX & TTWO? The Zacks Consensus Estimate for RBLX's 2025 sales implies year-over-year increases of 28%. Then again, the consensus estimate for loss per share in the year is pegged at $1.42 compared with a loss of $1.44 reported in the prior year quarter. However, in the past 7 days, loss estimates have widened for 2025. Image Source: Zacks Investment Research The Zacks Consensus Estimate for TTWO's fiscal 2026 sales and EPS implies year-over-year growth of 6.1% and 31.7%, respectively. Earnings estimates for fiscal 2025 have declined in the past 30 days. Price Performance & Valuation The RBLX stock has surged 69.5% in the past six months, outpacing its industry's growth of 15.9%. Conversely, TTWO shares have risen 18.3% in the same time frame. Price Performance Image Source: Zacks Investment Research RBLX is trading at a forward 12-month price-to-sales ratio of 13.16X, above its median of 8.28X over the last year. TTWO's forward sales multiple sits at 5.61X, above its median of 4.90X over the same time frame. P/S (F12M) End Notes Both Roblox and Take-Two offer compelling growth narratives, but they differ significantly in their strategic approaches. Roblox thrives on a user-driven ecosystem with rising engagement, an expanding global user base and strong momentum in its creator economy, which is increasingly monetized through AI-driven tools and scalable innovation. While it faces near-term risks from consumer discretionary trends, its platform-centric model positions it well for long-term digital entertainment trends. In contrast, Take-Two leans heavily on blockbuster franchises and upcoming major releases, offering dependable brand strength but facing pressure from rising development costs and potential mobile softness. Given Roblox's stronger recent momentum, broader engagement expansion and content scalability, it currently appears to hold a slight edge over Take-Two. Both RBLX and TWWO carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Higher. Faster. Sooner. Buy These Stocks Now A small number of stocks are primed for a breakout, and you have a chance to get in before they take off. At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We've combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month. You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days. Download the report free now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Roblox Corporation (RBLX): Free Stock Analysis Report
Axios
17-07-2025
- Sport
- Axios
Tamika Catchings, WNBPA and 2K team up for Riverside rebirth
One of the most meaningful basketball courts Tamika Catchings has ever stepped foot on has been given a fresh start to inspire a new generation of Indy ballers and philanthropists. Why it matters: The refurbished court at Riverside Park is the latest improvement for the long-underutilized Indy attraction spanning both sides of the White River. The court was funded by 2K Foundations, the charitable arm of Take-Two Interactive Software, Inc. Driving the news: Catchings, Indiana Fever guard Sydney Colson, WNBPA executive director Terri Jackson and 2K's head of lifestyle and content marketing Ronnie 2K gathered with the community for a court unveiling Thursday morning. Flashback: The court is special to Catchings because it is where she hosted her first youth basketball camp in December 2001 after being sidelined with a torn ACL. In addition to basketball skills, the free camp taught children about philanthropy by asking them to bring in canned goods that would be donated to Gleaners as their price for admission. "This is where it all began. So it's always going to have a big place in my heart, and it's somewhere that I wanted to come back to," Catchings told Axios. Similar to Catchings championing philanthropy 24 years ago, 2K Foundations has leveraged the massive brand identity established by the NBA2K games to reinforce the importance of doing good. "That's what this is really about … trying to inspire the next generation to fall in love with basketball, just like I did as a kid, and then be able to pay it back down the road," Ronnie 2K said. What's new: Riverside's court now features an official WNBA three-point line, a nod to the WNBA's "Line 'Em Up" effort to bring regulation three-point lines to community courts across the country. The bottom line: For the kids who will play at Riverside, and for Catchings, this is much more than a court; it's a symbol of endless possibility. "It really is about dreaming big. You're bigger than this neighborhood," Catchings said. "And yes, come back to the neighborhood. Never forget where you came from. But know that whatever you want to achieve or wherever you want to go, you've got people that want to help you succeed."
Yahoo
16-07-2025
- Business
- Yahoo
Should You Buy Take-Two Stock Around $235?
Take-Two stock is rising on high sales expectations for an upcoming release. Analysts expect sales of "Grand Theft Auto VI" to lift Take-Two's revenue by 52% in fiscal 2027. Strong sales of add-on content and in-game spending could lead to significantly higher margins and earnings. 10 stocks we like better than Take-Two Interactive Software › Investors are keen on Take-Two Interactive's (NASDAQ: TTWO) prospects with the blockbuster release of Grand Theft Auto VI less than a year away. The Grand Theft Auto franchise has become a cornerstone of pop culture and has been one of the best-selling video game series of all time. Scheduled to debut on May 26, 2026, the newest installment will tap into a huge fanbase that's anxious to jump into a new adventure -- it has been 12 years since the previous release of Grand Theft Auto V. The featured song in the release trailer for the upcoming title saw an 182,000% increase in the number of streams on Spotify, while the trailer itself was viewed over 475 million times in the first 24 hours. Anticipation for the game is sky-high, and Take-Two stock is up 27% year to date, as of this writing. Though the new release is still a year away, the substantial windfall it can offer Take-Two's business justifies buying the stock now, and growth estimates from Wall Street analysts seem to echo this sentiment. Here's what you need to know. From a valuation perspective, Take-Two stock is clearly priced for growth. It currently trades at a forward price-to-earnings (P/E) ratio of 87 based on earnings estimates for the current fiscal year (ending Mar. 31, 2026). That multiple drops to 25 for fiscal 2027, based not just on expectations for Grand Theft Auto (GTA) but also strong sales across Take-Two's large catalogue of titles. Take-Two has two upcoming releases this year that should also deliver strong sales: Borderlands 4 and Mafia: The Old Country. Borderlands is the bigger franchise, with the previous installment selling 22 million units. Management's fiscal 2026 outlook calls for net bookings to grow roughly 5% over fiscal 2025, to a range $5.9 billion to $6.0 billion. Nearly half of bookings are expected to come from Zynga's mobile titles, with another 39% coming from the 2K label and 16% from Rockstar Games, which includes sales of the current GTA title. Fiscal 2027 will be the first year to include sales of GTA VI. Management doesn't offer specific revenue guidance this far out, but Wall Street analysts currently expect revenue to grow 52% over fiscal 2026 to reach a record $9.1 billion. For perspective, the previous release grew revenue 98% in Take-Two's fiscal 2014, and it supported a decade of growth for the business. Take-Two could be looking at a strong five-year stretch of growth, at a minimum. Wall Street analysts currently project revenue will reach $10.9 billion by fiscal 2030, implying a five-year compound annual growth rate of 14%. The company is executing a long-term growth strategy that extends beyond GTA VI as well. It has 25 titles planned for release through fiscal 2028, including releases for existing franchises, five sports simulation games, and four mobile titles. This should further pad its top-line momentum. What's really going to move the stock is earnings. Three quarters of Take-Two's bookings come from recurrent consumer spending, including virtual currency, add-on content updates to existing games, and in-game advertising. This revenue is very accretive to margins and earnings, and Take-Two has mastered the art of keeping players spending time with GTA V for the last decade through Grand Theft Auto Online. GTA VI should be able to drive similar growth in recurrent consumer spending. Analysts expect Take-Two's adjusted earnings to grow at an annualized rate of 39% over the next five years, reaching $16.03 per share. If the stock is still trading at 25 times earnings, that would put the share price at $400. Even allowing for some margin of error in analysts' estimates, this top video game stock still offers upside from the current $234 share price. However, investors need to keep in mind that release dates for games are not set in stone. GTA VI was originally scheduled to release this year, but it was pushed back to give the developers more time to polish the game. Given this uncertainty, which tends to result in greater volatility for the stock, I would keep any position in Take-Two small and then buy more shares on any dips. Before you buy stock in Take-Two Interactive Software, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Take-Two Interactive Software wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,010,880!* Now, it's worth noting Stock Advisor's total average return is 1,047% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 14, 2025 John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Spotify Technology and Take-Two Interactive Software. The Motley Fool has a disclosure policy. Should You Buy Take-Two Stock Around $235? was originally published by The Motley Fool
Business Wire
10-07-2025
- Business
- Business Wire
Take-Two Interactive Software, Inc. to Report First Quarter
NEW YORK--(BUSINESS WIRE)--Take-Two Interactive Software, Inc. (NASDAQ: TTWO) today announced that it plans to report financial results for its first quarter of Fiscal Year 2026, ended June 30, 2025, after the market close on Thursday, August 7, 2025. The Company plans to hold a conference call to discuss its results at 4:30 p.m. Eastern Time, which can be accessed by dialing (888) 596-4144 or (646) 968-2525 (conference ID: 9711440). A live, listen-only webcast and a replay of the call will be available at About Take-Two Interactive Software Headquartered in New York City, Take-Two Interactive Software, Inc. is a leading developer, publisher, and marketer of interactive entertainment for consumers around the globe. The Company develops, operates, and publishes products principally through Rockstar Games, 2K, and Zynga. Our products are currently designed for console gaming systems, PC, and mobile, including smartphones and tablets, and are delivered through physical retail, digital download, online platforms, and cloud streaming services. The Company's common stock is publicly traded on NASDAQ under the symbol TTWO. All trademarks and copyrights contained herein are the property of their respective holders.
Yahoo
18-06-2025
- Business
- Yahoo
Take-Two Stock Is Crushing the Nasdaq in 2025. Is It a Buy?
Investors are bullish on Take-Two's growth prospects, sending the stock up 27% year to date. This leading game maker is preparing to launch several releases over the next few years. At the current valuation, investors are anticipating Take-Two's margins to increase significantly in the coming years. 10 stocks we like better than Take-Two Interactive Software › Take-Two Interactive (NASDAQ: TTWO) stock is up 27% year to date, significantly outperforming the broader market. By comparison, the Nasdaq Composite (NASDAQINDEX: ^IXIC) is up just 0.59% at the time of writing. The maker of the uber-popular series Grand Theft Auto (GTA) reported outstanding financial results to cap off fiscal 2025 (ending in March). The momentum is noteworthy as Take-Two prepares to launch a series of new releases in the coming years, including GTA VI, to grow the business. However, it's always important to have an understanding of what you're actually paying for at the current share price. With the stock trading at higher multiples of sales and earnings, can investors buying shares today expect a good return on their investment? Take-Two is hitting a nice stride as management executes against its long-term strategy to grow the business. The company's non-GAAP (adjusted) revenue, or bookings, grew 6% year over year in fiscal 2025, with bookings up 17% in the most recent quarter. Its strategy of focusing on building player relationships from releasing live updates to existing franchises is paying off. Bookings from players spending money on virtual currency and other content while playing games, or "recurrent consumer spending," accounted for 80% of bookings in fiscal 2025. Take-Two just released Sid Meier's Civilization VII for the Nintendo Switch 2 in early June, with several other titles from existing franchises planned over the next year. For fiscal 2026, management is guiding for bookings to increase 6% over fiscal 2025 to approximately $6 billion. The big one -- GTA VI -- is scheduled for release on May 26, 2026. Given the 215 million copies the current version of the game has sold since 2013, Wall Street anticipates blockbuster sales, with current estimates calling for Take-Two's bookings to hit $9 billion in fiscal 2027. Take-Two has delivered strong growth for shareholders over the last 10 years. Its generally accepted accounting principles (GAAP) revenue grew at an annualized rate of 18%, which includes the acquisition of mobile game maker Zynga in fiscal 2023, although the company's profits and free cash flow have taken a hit since that acquisition. However, Take-Two has a history of growing its earnings and free cash flow, and that is very much on the table going forward. Take-Two is following a long-term strategy to expand its portfolio of games, grow recurrent consumer spending, and scale the business to spread more revenue over costs and expand margins. During the last earnings call, management stated there is no reason the business can't reach a low to mid-20% operating margin like it achieved during the pandemic. This is what Wall Street analysts are expecting, with projected annual earnings growth at 36% for the next several years. Given the expectation for higher margins and earnings growth, the stock is trading at its highest price-to-sales multiple since its previous peak margins during the pandemic. It's also trading at a high forward price-to-earnings multiple of 87. But sales and earnings multiples don't tell the whole story about a company's intrinsic value. To reverse engineer the expectations implied in the current $235 share price, I plugged in some numbers to a discounted cash flow model. I assumed the company's revenue would grow at double-digit annual rates to reach $18 billion by 2035, with the operating margin reaching 25%. Using a 10% discount rate and a 4% terminal growth rate beyond year 10, Take-Two's intrinsic value is $236. Those are the financial targets Take-Two needs to achieve to justify the current share price. For the stock to be considered a screaming buy right now, you have to make more aggressive growth projections. To justify a fair value of $300, Take-Two would have to either achieve an operating margin in the 30% range or grow its revenue to $25 billion. Take-Two stock rocketed over 1,000% following the previous GTA launch in 2013, but that's because investors significantly underestimated the sales and profits from that release. Investors have wised up to the potential of GTA VI and priced the stock accordingly. The stock is still a buy for someone that can be satisfied with a more modest return. But given the current valuation, I wouldn't buy it if you're expecting significant outperformance relative to the broader market. Before you buy stock in Take-Two Interactive Software, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Take-Two Interactive Software wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Take-Two Interactive Software. The Motley Fool recommends Nintendo. The Motley Fool has a disclosure policy. Take-Two Stock Is Crushing the Nasdaq in 2025. Is It a Buy? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
