Why Take-Two Stock Is Down Today – An Analysis Why Take-Two Stock Is Down Today – An Analysis

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By Ronald Tech

Take-Two Interactive Software, Inc. TTWO shares are down on Friday following the release of its third-quarter financial results.

Performance Snapshot:

Take-Two reported third-quarter total net bookings of $1.34 billion, a decrease of 3% year-over-year. The company also recorded a GAAP net revenue of $1.37 billion, down 3%, and a GAAP loss per share of 54 cents.

Take-Two revised its 2024 net bookings forecast lower to $5.25 billion and $5.3 billion, down from $5.45 billion and $5.55 billion earlier.

Roth MKM analyst Eric Handler maintained Take-Two Interactive with a Buy rating and raised the price target from $168 to $185. Additionally, Wedbush analyst Nick McKay reiterated an Outperform buy rating on the stock and maintained a $190 price target following the earnings report.

Take-Two shares experienced a significant decline in trading volume on Friday as investors processed the report. The session’s trading volume exceeded 5.59 million shares, while the stock’s 100-day average volume stands at 1.894 million shares.

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Assessing TTWO’s Investment Potential:

When evaluating a stock for investment, crucial fundamentals that investors may wish to assess include revenue growth. Purchasing a stock essentially reflects a belief that the company will sustain growth and generate profits in the future.

Take-Two Interactive TTWO has reported average annual revenue growth of 19.5% over the past 5 years.

It’s also essential to consider valuation when contemplating an investment in a stock. Take-Two Interactive boasts a forward P/E ratio of 24.39. This figure indicates that investors are paying $24.39 for each dollar of anticipated earnings in the future. The average forward P/E ratio of Take-Two’s peers stands at 26.6.

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Other vital metrics to examine include a company’s profitability, balance sheet strength, performance relative to a benchmark index and valuation relative to peers.

TTWO Price Action: According to trading data from Benzinga Pro, Take-Two Interactive shares are currently down more than 8% at $155.88 at the time of publication.

Image: Grace Baker from Pixabay