TTWO - Why I'm Not Buying Take-Two Interactive Stock Right Now and Considering This Stock Instead
2024-04-08 08:15:00 ET
For growth investors, the video game industry is one that's worth watching. Audience sizes are expanding even among the most established developers, and monetization trends keep improving following the post-pandemic lull.
Meanwhile, video games are becoming far more valuable products now that they're sold through a software-as-a-service (SaaS) model. Rather than seeing a single $60 revenue spike for a title, companies often book a full year (or more) of regular income from a release in addition to that initial cash outlay -- once you factor in many rounds of micro transactions and content updates.
Take-Two Interactive Software (NASDAQ: TTWO) is among the most popular stocks in the industry today, mainly because the company is about to release several large games that should propel it toward $8 billion of annual revenue. That's about where the industry giant Electronic Arts (NASDAQ: EA) sits in its yearly sales haul. But EA might still be a better buy than its smaller peer. Here's why.
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Why I'm Not Buying Take-Two Interactive Stock Right Now, and Considering This Stock Instead