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- Take-Two’s investment in Twitch Interactive has finally been revealed.
- The company received $22 million for their stake in Twitch.
- Take-Two’s philosophy in this investment is indicative of its deep understanding of its customer base.
Take-Two Interactive Q2 2015 Review: Digital And Diversification Driving The Outperformance
- TTWO reported a strong set of Q2 results with an EPS and revenue beat, followed by higher guidance.
- Digital drove most of the outperformance given there were no new titles.
- The strong pipeline suggests the current trend is sustainable.
Take-Two Interactive Q2 2015 Preview: Diversification The Right Strategy
- TTWO reports Wednesday after the close.
- Expect another solid quarter but the key is in the guidance with GTA and other games in the pipeline.
- 6x forward P/E and $6.70 net cash/share provide downside support.
Take-Two Interactive: Undervalued With Plenty Of Growth Ahead
- Take-Two is one of the largest American video game publishers.
- Of the large video game publishers, Take-Two has the lowest P/E ratio.
- Take-Two is undervalued and has a lot of room to run.
- Take-Two's shares trade at a lower multiple than its peers and the broader market.
- Take-Two's shares are significantly below fair value.
- Take-Two's balance sheet is solid and growth prospects are good.
- Take-Two's technicals are bullish.
- Take-Two Interactive's strong gaming pipeline has allowed the company to deliver growth even in sluggish times.
- Take-Two Interactive is also making smart moves to tap the online gaming market in China.
- Take-Two's valuation and future games indicate that the company's strong performance will continue.
Take Two Interactive: Attractive Entry Point For Long-Term Investors
- TTWO has strong existing sales and an impressive product pipeline.
- They have a healthy balance sheet and are undervalued relative to projected earnings growth.
- The margins are high and have been increasing.
- The market cap is $1.9B with revenues of $2.4B.
- Take-Two's stock has risen over 20% in the past 52 weeks and is almost at $20.
- A number of catalysts accompanied by an already strong business model indicate that Take-Two will experience continued success.
- At $19.59, it might be a little expensive for some. But for true long term value investors, now might not be a bad time to jump in.
- Take-Two Interactive Software ended its fiscal year on March 31, 2014, and it had a phenomenal year.
- Based on a peer group with a forward P/E of 18x, the company's P/E ratio is lower than 82% of other companies in the software and programming industry.
- The P/E may be justified, however, due to the inconsistent nature of earnings.
- Take-Two (TTWO) reported excellent fiscal year 2014 earnings on Tuesday.
- Unfortunately there was no timing visibility for the release of the critical next Red Dead game.
- While waiting for Red Dead timing visibility catalyst use fair value annual earnings power multiples to guide your entries.
Sun, Feb. 2, 5:35 PM
Fri, Jan. 17, 9:31 AM
- Electronic Arts' (EA +11%) Battlefield 4, Madden NFL 25, and FIFA 14 respectively claimed spots #2, #4, and #9 on NPD's December bestseller list for U.S. physical retail game sales. Those rankings are hardly changed from November (#2, #4, and #10). Moreover, EA's total sales through the physical retail channel rose an estimated 47% Y/Y.
- "EA Scores December Hat Trick," reads the title of a bullish Cowen report. The firm thinks NPD's numbers suggest EA has a shot at beating consensus estimates and guidance forecasts when it reports on Jan. 28. Longbow, which had been prepared to cut its EA estimates in response to NPD's numbers, is hiking them instead.
- On the other hand, NPD thinks Activision's (ATVI -0.1%) U.S. physical retail sales fell 40% Y/Y in December, thanks in part to tough Call of Duty comps. Call of Duty: Ghosts was the bestselling title for the second straight month, but Skylanders: Swap Force fell to #10 from #7. Shares +0.9%.
- Take-Two's (TTWO +2%) Grand Theft Auto V, which debuted in September to record sales, fell to #7 from #5. NBA 2K14 rose a spot to #5.
- Altogether, NPD thinks U.S. physical retail game sales, still pressured by a shift to digital channels and mobile gaming, fell 17% Y/Y. That's a little better than November's 24% drop.
- Previous: EA, Activision, Take-Two underperform after GameStop warns
Tue, Jan. 14, 2:27 PM
- Activision (ATVI -1.7%), Electronic Arts (EA +0.3%), and Take-Two (TTWO -1.2%) are underperforming on a strong day for tech stocks after GameStop (GME -19.4%) reported disappointing holiday game sales and issued a Q4 EPS warning.
- Though GameStop saw its new hardware sales (a low-margin business) double Y/Y thanks to the PS4/Xbox One launches, a bigger-than-expected decline in PS3/Xbox 360 game sales led new software sales (high-margin) to drop 22.5% Y/Y. Pre-owned sales rose 7%, and digital sales 15%.
- Compared with peers, Electronic Arts is holding up relatively well thanks to a Credit Suisse upgrade to Outperform. EA reports on Jan. 28, and Take-Two on Feb. 3. If history is any guide, Activision should report in early February.
Tue, Jan. 7, 1:30 PM
- Sony (SNE +0.1%) announces at CES PlayStation 4 end-user sales (i.e. sell-through) reached 4.2M as of Dec. 28. That figure suggests the PS4 soundly outsold the Xbox One (MSFT - 3M+ sales in 2013) last year, and has a good chance of surpassing Sony's target of 5M FY14 (ends March '14) sales.
- Wider distribution - the PS4 is on sale in 53 countries, the One is only available in 13 - has helped Sony's next-gen console outsell Microsoft's. But so has a lower price tag ($399 vs. $499) and the backlash to the used game restriction and Internet access requirements initially planned for the One (before Microsoft backtracked).
- Sony has also announced the launch of PlayStation Now, its anticipated cloud gaming service. The service, which leverages Gaikai's cloud gaming platform, will provide access to PS2/PS3 titles, and (since it's cloud-based) run on everything from home consoles to TV sets to handheld/mobile devices.
- Also announced: a Web-based TV service that will include VOD content and a cloud-based DVR. However, Sony is short on details for now. Intel and others have taken stab at offering such a service, only to be thwarted by content owners and incumbent pay-TV providers.
- PS4 and Xbox One CPU/GPU supplier AMD (AMD +1.6%) is rallying for the second straight day. Game developers are also higher: EA +3.2%. TTWO +3.2%. ATVI +1.6%.
Dec. 13, 2013, 11:08 AM
- NPD estimates U.S. physical retail video game sales fell 24% Y/Y in November, after having risen 12% in October and (thanks to the Grand Theft Auto V launch) 52% in September. The fact many gamers directed their discretionary income towards buying next-gen consoles may have played a role here.
- Electronic Arts (EA +7.2%) investors appear pleased Battlefield 4 came in at #2 on NPD's bestseller list, in spite of the well-publicized bugs and gameplay issues EA is scrambling to address. In addition, Madden NFL 25 is ranked #4 after falling out of the top-10 in October, and FIFA 14 is at #10.
- Activision's (ATVI +0.1%) Call of Duty: Ghosts topped the bestseller list, and Skylanders: Swap Force is ranked #7. Take-Two (TTWO +2%) investors appear content with the fact GTA V came in at #5 after easily topping NPD's list for two months; Take-Two's NBA 2K14 is ranked #6, up one spot from October.
- NPD also states the PS4 outsold the Xbox One in November both in terms of hardware and game sales. But that might simply be the result of an earlier launch (Nov. 15 vs. Nov. 22). Sony claimed 2.1M+ PS4 sales as of Dec. 3, and Microsoft claimed 2M+ Xbox One sales as of Dec. 11.
Nov. 26, 2013, 8:22 AM
- Take-Two (TTWO) slides 6.1% in the premarket as Icahn's sale of his stake - and the stepping down of Brett Icahn, Jim Nelson, and SungHwan Cho from the board - looks to mean management won't be selling the company anytime soon.
- The 12.02M shares were purchased at yesterday's closing price of $16.93 per share for a total cost of about $203.5M. The float falls to 81M shares. The buyout of Icahn's stake is outside of the existing 7.5M share repurchase program. The company has bought back 4.2M shares under this authorization to date.
- Press release
Nov. 22, 2013, 9:49 AM
- Rackspace (RAX -2.6%) has been started at Neutral by D.A. Davidson.
- Take-Two (TTWO -3.8%) has been cut to Market Perform by Cowen.
- Gogo (GOGO -1.9%) has been cut to Neutral by JPMorgan due to concerns about a Dec. 17 lockup expiration (67% of shares will be made available for sale).
- ServiceSource (SREV +3.5%) has been upgraded to Buy by Credit Agricole.
- Silicon Motion (SIMO +3.4%) has been started at Buy by BofA/Merrill.
- Qiwi (QIWI +4.4%) has been started at Buy by Goldman shortly after beating Q3 estimates and upping its full-year guidance.
Nov. 15, 2013, 2:20 PM
- After rising 52% Y/Y in September on the back of huge sales for Take-Two's (TTWO -0.2%) Grand Theft Auto V, NPD estimates U.S. physical retail video game sales only rose 12% Y/Y in October ahead of this month's PlayStation 4 (launching today) and Xbox One (launching on Nov. 22) debuts. GTA V was once more the bestselling title.
- GameStop (GME -2.2%) is selling off on the wake of NPD's numbers, and so is Electronic Arts (EA -5.7%). Investors in the latter might not be pleased Madden NFL 25 (#2 in September and #1 in August) and FIFA 14 (#5 in September) fell out of the NPD's list of the ten top-selling games. EA's Battlefield 4, which launched near the end of the month to muted reviews, came in at #4.
- Take-Two's NBA 2K14 (#3 in September) and WWE 2K14 respectively came in at #7 and #10.
- Activision's (ATVI - unchanged) Skylanders: Swap Force was #8 on the list. Diablo III, which was #4 in September, dropped out of the top-10.
- Hardware sales fell 8% ahead of the PS4/Xbox One launches, and only totaled $171.7M. Accessories sales rose 1%.
Oct. 29, 2013, 5:18 PM
- Following a halt, Take-Two (TTWO) is moderately higher AH after blowing away FQ2 estimates on the back of huge Grand Theft Auto V sales, and issuing strong FQ3/FY14 guidance. However, investors were expecting a big quarter in light of industry data and Take-Two's prior announcements.
- Take-Two, whose annual results have had a strong boom-bust quality to them over the years (thanks to a dependence on big game launches), now says it's confident its can achieve non-GAAP profitability in FY15 (ends March '15) and every subsequent year "for the foreseeable future."
- Nearly 29M GTA V units have been sold thus far; that figure surpasses lifetime sales of Grand Theft Auto IV. Promotional activity for the game contributed to a 54% Y/Y increase in sales/marketing spend to $101.3M. R&D spend +37% to $26.5M, G&A +40% to $43M.
- Digital sales totaled $105.5M, or 8% of revenue.
Oct. 29, 2013, 4:23 PM
- YELP expects Q4 revenue of $66M-$72M, above a $64.8M consensus. Shares -1.5% AH. (Q3 results, PR)
- Take-Two (TTWO) expects FQ3 revenue of $650M-$700M and EPS of $1.20-$1.35, largely above a consensus of $640.9M and $1.22. FY14 (ends March '14) guidance is for revenue of $2.2B-$2.3B and EPS of $3.50-$3.75, above a consensus of $2.03B and $2.80. Shares are halted. (FQ2 results, PR)
- Electronic Arts (EA) expects FQ3 revenue of $1.65B and EPS of $1.22, below a consensus of $1.75B and $1.32. However, FY14 (ends March '14) guidance is stronger: revenue of $4B and EPS of $1.25 vs. a consensus of $4.02B and $1.22. Shares +2% AH. (FQ2 results, PR).
- Flextronics (FLEX) expects FQ3 revenue of $6.5B-$6.9B and EPS fo $0.21-$0.25 vs. a consensus of $6.79B and $0.25. Shares -1.6% AH. (FQ2 results, PR)
Oct. 29, 2013, 4:18 PM
Oct. 18, 2013, 11:15 AM
- Thanks to Grand Theft Auto V's (TTWO -0.6%) blockbuster launch, U.S. retail physical video game sales rose 52% Y/Y in September to $754M, per NPD (or +40% if one includes PC game sales). Sales were up 21% in August after falling 19% in July.
- GTA V, whose global retail sales topped $1B within three days of its Sep. 17 launch, single-handedly accounted for over half of NPD's September figure. Electronic Arts' (EA +0.6%) Madden NFL 25 was #2 on NPD's bestseller list after coming in first in August, and FIFA 14 was #5. Take-Two's NBA 2K14 was #3, and Activision's (ATVI -1.1%) Diablo III was #4.
- Hardware sales -13% Y/Y to just $183M ahead of the Xbox One/PS4 launches. Accessories +2% to $142M. GameStop (GME +1.5%) is higher after initially trading near breakeven.
- NPD also reports U.S. digital game revenue rose 6% Y/Y to $970M, albeit with a mix shift away from traditional fare. Downloadable content sales for console-type games fell 23% to $198M, and subscription MMOs (such as Activision's World of Warcraft) lost 300K subs.
- However, mobile game sales rose 14% to $266M, social games rose 16% to $176M, and free-to-play MMOs such as EA's Star Wars: The Old Republic added 700K users. That first two figures spell bigger addressable markets for Zynga (ZNGA +1.8%) and Glu (GLUU +4.1%), respectively; each has lost some share this year.
Sep. 27, 2013, 10:13 AM
- China's State Council says gaming consoles, banned since 2000, will be allowed for sale provided they're approved by the Ministry of Culture. The decision opens the door for Microsoft (MSFT +1.1%), Sony (SNE -0.7%), and Nintendo (NTDOY.PK) to begin officially selling their hardware in the Middle Kingdom.
- Unofficially, the hardware hasn't been hard to find on the black market, with sellers typically hawking modified systems that support pirated games. However, the government's decision should open the door for console makers and game developers (EA, ATVI, TTWO) to formally market their wares, replete with Chinese-language translations.
- Aside from piracy, China's well-established online gaming scene will serve as a challenge for console makers and game developers. Some of the online gaming firms they'll be competing against: TCEHY.PK, NTES, GA, GAME, PWRD, CYOU.
- Microsoft just formed a 49:51 console JV with local firm BesTV.
- Previous: Chinese government reportedly planning to end console ban
Sep. 26, 2013, 1:05 AM
- Less than a week after Grand Theft Auto V raced to $1B in retail sales within three days, Take-Two's (TTWO) Rockstar Games unit has provided details about Grand Theft Auto Online, the online world that will be available next week to buyers of the latest update to the edgy franchise.
- Grand Theft Auto Online will be free to GTA V buyers, but (in the spirit of the times) will be monetized via virtual currency/goods purchases. Rockstar: "You don’t have to spend real money to attain the cars, guns, clothes, flash and style of a high-roller in [the fictional city of] Los Santos, but can if you wish to get them a little quicker."
- A multiplayer mode allows up to 16 users can play together at a time. In addition to races, jobs, and "open-world crime and chaos," users will also be able to partake in tennis, golf, and base jumping, "all for cash and reputation."
- Thanks to the strong early reception for Grand Theft Auto V, Take-Two's Sep. quarter EPS consensus has risen to $1.42 from $1.35. Can Grand Theft Auto Online provide a lift to future quarters?
Sep. 20, 2013, 12:28 PM
- Take-Two (TTWO) estimates Grand Theft Auto V "has achieved worldwide retail sales of more than $1 billion during its first three days on sale." The company thinks no "entertainment property" (movies included) has hit that milestone as quickly. (PR)
- Take-Two announced on Wednesday it believes first-day GTA V retail sales topped $800M.
- GTA V reviews/estimates
Sep. 18, 2013, 6:40 PM
- Take-Two (TTWO) wrapped up its annual meeting (webcast) a little while ago. The company has issued a PR noting all existing directors were re-elected, including Brett Icahn (Carl Icahn's son). and that some run-of-the-mill shareholder proposals were approved.
- Shares finished regular trading up 1.2% (nearly in-line with the Nasdaq) after the game developer estimated retail Grand Theft Auto V sales topped $800M in the game's first 24 hours of availability.
TTWO vs. ETF Alternatives
Take-Two Interactive Software, Inc. is a developer, marketer and publisher of interactive entertainment for consumers around the globe. The Company develops and publishes products through its two wholly-owned labels Rockstar Games and 2K.
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