Communication Services · NYSE/NASDAQ: TTWO

TAKE TWO INTERACTIVE SOFTWARE INC

Electronic Gaming & Multimedia
Market Cap $40.15B
Verdict: Average

Quality Scores

Multi-Bagger
74/100
Compounder Quality
60/100
Management Credibility
72/100
Governance
75/100
Cash Flow Quality
40/100

AI Summary

Take-Two Interactive (TTWO) is currently an enterprise in a massive structural transition, marked by the acquisition of Zynga and the high-stakes development cycle of Grand Theft Auto VI. While revenue has scaled from sub-1B levels to over 6B, the bottom line has collapsed into significant GAAP losses due to massive impairment charges and acquisition-related amortization. The business model has shifted from a hit-driven console focus to a diversified portfolio including high-frequency mobile microtransactions. However, the financial profile has temporarily degraded from a high-margin…

Top Opportunities

  • Unmatched IP library (GTA, Red Dead, NBA 2K)
  • Strong Recurring Consumer Spending (RCS) growth
  • Dominant position in sports simulation (NBA 2K)

Top Risks

  • Massive GAAP net losses from 2023 to 2025
  • Significant goodwill impairment charges post-Zynga
  • Operating cash flow deterioration into negative territory

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