$187.84
arrow_drop_down0.17%Is TTWO a Buy or Sell based on AI Analysis?
Fundamental Analysis
Based on the fundamental analysis of Take-Two Interactive Software Inc, several key indicators provide valuable insights into the company's financial health and performance. The first indicator to note is the price-to-earnings (P/E) ratio, which is currently not provided in the data. The P/E ratio helps investors gauge the company's valuation relative to its earnings and the wider market. Additionally, the company's price-to-sales ratio of 4.75 offers insight into how the market values the company's revenue. A lower ratio may indicate an undervalued stock, while a higher ratio could suggest overvaluation. Another important indicator is the enterprise value to EBITDA ratio of 50.34, which helps assess the company's profitability and efficiency. A high ratio suggests the company may be overvalued, while a lower ratio could represent a potential buying opportunity. The return on equity (ROE) of -16.08% highlights the company's ability to generate profit from shareholders' equity. While a negative ROE may raise concerns, it is essential to consider industry norms and company-specific factors. Lastly, the company's revenue growth of 52.64% showcases its ability to increase sales over a period, indicating strong business performance and potential future growth opportunities.
Positive Development
Take-Two Interactive Software Inc. is showing resilience in the face of market volatility, as its stock price has remained relatively stable despite the recent market downturn. The company has a strong track record of innovation and continues to drive progress within the industry. The company's upcoming release of Grand Theft Auto VI could generate substantial profits in the medium term, creating a potential trading opportunity.
Negative Development
Despite the hype around GTA VI, Take-Two's stock is already too expensive, which could lead to a sell-off if investors don't see significant returns. The company is facing challenges from the video game industry layoffs, which could impact its workforce and overall performance. Take-Two's current financial metrics indicate that it is not profitable, with negative EPS and negative net margin.
Technical Analysis
Take-Two Interactive Software Inc (TTWO) has a neutral technical rating and a beta of 0.74, indicating moderate volatility compared to the market. The stock currently has technical buy indicators ATR and STOCHRSI, as well as technical hold indicators RSI, MACD, CCI, ADX, WILLR, and ROC. The company's stock sector is Communication Services, with a sector score of 61 and sector growth score of 74. The stock has a seven-day price change percent of -3.25% and a one-month price change percent of -10.77%. In terms of technical analysis, Take-Two Interactive Software Inc has a technical buy indicator count of 2 and a technical hold indicator count of 6 for the month. The stock has a technical rating of neutral and a technical buy indicator of ATR and STOCHRSI. The company's stock sector has seen a change of 28.55% in the past year, while the stock market as a whole has seen a change of 24.11% over the same period. Additionally, the stock has a trailing PE ratio of -17.26 and a cumulative multiple of 1.5. Overall, the company's technical analysis suggests a mixed outlook for investors.
Conclusion and recommendation
Based on the data provided for Take-Two Interactive Software Inc, it is evident that the company has a strong presence in the communication services sector with a market cap of $24.96 billion. Despite a recent decrease in stock price, the company has shown resilience with a 52-week high of $171.59 and a 52-week low of $108.39. Additionally, Take-Two Interactive has a solid revenue growth rate of 52.64% and a forward-looking analyst forecast price of $176.14, indicating potential for future growth. However, the company's negative net income of -$1.12 billion and negative return on equity of -16.08% raise concerns about its profitability and financial performance. In conclusion, while Take-Two Interactive Software Inc has shown positive trends in revenue growth and analyst forecasts, it is important for investors to carefully consider the company's financial health and profitability indicators before making investment decisions. With a sector score of 61 and industry growth score of 100, the company operates in a promising industry but faces challenges in terms of profitability and financial stability. Overall, investors should monitor the company's financial performance closely and consider diversifying their portfolio to mitigate potential risks associated with investing in Take-Two Interactive Software Inc.