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Why I'm Buying Take-Two Interactive Stock


Top video game stocks delivered great returns over the last decade. Take-Two Interactive (NASDAQ: TTWO) was a standout, with shares soaring nearly 500% in value from 2015 through 2020. But as the economy reopened, video game stocks underperformed. Take-Two is down 13% over the last year, trailing the S&P 500 index return of 13%.

I'm taking advantage of this down period to load up on my top pick in the video game industry. There are several reasons I like gaming stocks as a long-term investment, but Take-Two is my favorite for one reason: It has greater potential to expand profit margin and deliver further outperformance over time. Here's why.

Image source: Getty Images.

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Source Fool.com

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