Down 35%, Is Take-Two Stock a Buy?
Competition in the games industry has heated up in 2022 as multiple companies have altered the industry's landscape by acquiring different studios. Microsoft (NASDAQ: MSFT) kicked off the trend in January when it announced plans to acquire Activision Blizzard (NASDAQ: ATVI) for a historic $68.7 billion. Sony (NYSE: SONY) has also joined in by snapping up four game studios over the year, with its biggest being Bungie for $3.7 billion.
While Microsoft and Sony's acquisitions have been fueled by the ongoing console wars, Take-Two Interactive's (NASDAQ: TTWO) purchase of mobile gaming giant Zynga for $12.7 billion has helped it diversify its offerings and join a lucrative part of the market. The company's stock has dipped almost 35% since January on the back of a decrease in consumer demand across the tech industry and a dismal quarter because of its pricey acquisition of Zynga.
However, Take-Two is a solid buy for the long term thanks to a valuable content catalog and projected market growth. Let's assess.
Source Fool.com
