Take Two Interactive ( NASDAQ:TTWO) has been making headlines this week as the market has been hit hard across the board due to the rising bond yields and interest rate increases. Both the DOW and the S&P 500 have had their worst weeks in months with the Nasdaq being the first to show a sign of a recovery from the interest rate crash.
Take two interactive are a very exciting video game software company right up there with EA and Activision. There is fierce competition at this time of year as some of the most anticipated gaming titles hit the shelves before the holidays including Activision’s highly anticipated call of duty black Ops 4, EA’s battle field and Take Two Interactive’s potentially game of the year to follow their smash hit Grand Theft Auto 5, Red Dead Redemption 2.
Yes, it’s finally coming, but this isn’t a blog about the games. Rather about the company itself and it’s stock price. Take two has been breaking headlines with CNBC’s Jim Cramer putting Take Two Interactive right up there with “Cramer’s ‘power ranking’ of communication services stocks”
Forbes had an article out siting that the top wall street hedge fund managers are selling out of their semiconductor AMD stocks, and looking to buy Take-Two Interactive stocks. So with that being said it’s fair game to say the shareholders of( NASDAQ:TTWO) have had a article friendly week and their stock price has reflected that closing.
Tuesday Afternoon’s session ( NASDAQ:TTWO) 127.95+1.13 (+0.89%) At close with after hour’s action pushing the stock up a further 1.95% to 130.45 which is a solid +2.50 gain. No doubt the institutional funds flowing into this stock have had their say.
Wall Street money is on board with Take Two Interactive despite it’s forward P/E of 23. Last week, Wayne Himelsein President and Chief Investment Officer at Logica Capital Advisers told sources that he sold AMD stocks (in which he nearly doubled his money), to buy Align Technology, Broadridge Financial, Illumina, or Take-Two Interactive. AMD fell 13%, so selling was a good call. Now after completing his research, Wayne says Take-Two ( NASDAQ:TTWO) is the one to buy.
Cramer ranked Take-Two Interactive third on his top 5 power stock ranking’s for its popular video game franchises, which include Grand Theft Auto and the various 2K sports game series which are all billion dollar franchises.
“Take-Two’s always been driven by huge new releases like Grand Theft Auto, and in less than three weeks, they roll out Red Dead Redemption 2, one of the most anticipated games of the year. It looks like they’ll make a fortune on this thing,” he said. “At nearly 25 times next year’s earnings estimates, you know what? I think this one’s a steal.”
In my opinion a company with a 15 billion dollar valuation, a billion in the bank and a fortune money line of hit franchises still to come and releases in the next few years such as Grant Theft Auto 6 and the growing E-sports franchise with 2K, everything is looking good for the software company and merits a Buy Rating from myself.
The market had some of it’s roughest days last week, even when you are in the best stocks, you have to recognized that any stock is quite literally 75% the market, or what’s called “systemic” exposure.
This means that when the market falls, we will have 75% downward pressure on our thoughtfully selected stocks. The best we can hope to do when the market sells off is to outperform on a relative basis by losing less. It’s almost impossible to diversify out all risk out of your portofolio and sometims when the whole market is in dispare it’s really really hard to avoid.
If we look at TTWO ( NASDAQ:TTWO) last week, we see almost a staircase of down days, where each day, as the market fell, it just stepped down to the next level, evenly and smoothly.
There were no double step jumps, or leaping off the top of the staircase to land on the floor below in a single trading day, there was just “I’ll see you downstairs” and off it went.
What we can do is look to pick up some steals and look forward to a strong end of year, where many find managers would be looking to bring some good results to their folios in hopes of that big bonus!
Finally to wrap this briefing up on some even better news, Bernstein have just come out today and announced their support for Take Two with a “outperform” ranking for the stock. Sanford C. Bernstein initiates Take Two Interactive as an outperform, $175PT.
This price target on Take Two ( NASDAQ:TTWO) represents a 37.99% upside over the stock’s previous closing price of $126.82.
Over to you, what do you feel about the TTWO ( NASDAQ:TTWO) stock? Leave a comment down below!