Keep a close eye on video game stocks, most notably Take-Two Interactive (SYM: TTWO).
That’s because the company just announced that its most-popular, heavily demanded Grand Theft Auto VI will be out in the fall. For one, TTWO has a strong history of running ahead of the release of the game release. Two, DFC Intelligence, one of the top firms covering the video game industry, says the latest installment of GTA VI will sell millions of copies in its first year, and could generate sales of more than $3 billion.
“GTA V has 11 years of sales history and revenues actually increased in Years 7, 8, and 9, reaching around $1 billion in both Years 8 and 9,” DFC founder David Cole said, as quoted by ESPN. “Because of this long-term success, we think that GTA VI will have a faster start out of the gate. Sales should pass $1 billion before it is released via pre-orders.”
And three, Goldman Sachs just raised its price target on TTWO to $230 from $205 with a buy. Helping, the company posted strong earnings. Plus, according to Investing.com, “Take-Two’s management reiterated the anticipated release of Grand Theft Auto VI in the fall of 2025 and offered more concrete timelines for other significant titles, including Mafia and Borderlands.”
With earnings, TTWO reported total net bookings growth of 3% to $1.37 billion. The company’s EPS loss of 71 cents beat estimates by 19 cents. Revenue of $1.36 billion missed by $30 million. However, with 2025 set to be a strong year, we do expect for those numbers to improve.
“For Fiscal 2025, we are reiterating our Net Bookings guidance range of $5.55 to $5.65 billion and our outlook for operating performance. Our projections for the fourth quarter balance strength in NBA 2K with a continuation of the current mobile trends, and the shift of some operating expenses into the period,” added Chairman and CEO Strauss Zelnick.
“Looking ahead, this calendar year is shaping up to be one of the strongest ever for Take-Two, as we plan to launch Sid Meier’s Civilization VII on February 11th, Mafia: The Old Country in the Summer, Grand Theft Auto VI in the Fall, and Borderlands 4.
With strong catalysts ahead, investors may want to buy TTWO – especially as we get closer to the fall release of Grand Theft Auto VI.
Additional Reading – The 2 Best Stocks to Play Trump’s “Stargate”
The first is a little-known company that already got a takeover offer from Nvidia.
The second is a firm that’s trading at just $20 a share and has an 8% yield.
