Forget Take-Two Interactive Stock. Buy This Video Game Giant Instead.
Investors could hardly be more optimistic about Take-Two Interactive's (NASDAQ: TTWO) growth opportunities these days. The video game developer's stock price jumped over 50% in 2023 to roughly double the wider market's performance. This spike occurred despite Take-Two's modest sales trends and the significant losses it generated through most of the year.
Less risky options are available for investors seeking exposure to the video game industry. Rival Electronic Arts (NASDAQ: EA) is adding to its impressive market share position, for example, and already enjoys many advantages that Take-Two aims to achieve over the next few years. Let's look at a few reasons you might prefer the established game developer over Take-Two Interactive right now.
The main reason investors are excited about Take-Two stock is that the company is entering an unusually busy period for game launches. A new Grand Theft Auto title is expected to arrive in 2025 to mark the first major new installment in the franchise in a decade. Dozens of other big releases are in the pipeline for the next two years as well. With help from Take-Two's recent acquisition of the Zynga casual gaming giant, these titles are predicted to boost sales to nearly $8 billion in 2024, up 40% over 2023, as profits move into solidly positive territory.
Source Fool.com
