Take-Two Interactive (TTWO, Financial) experienced a 2.69% drop in its stock price today. This decline is attributed to broader sentiments in the gaming industry following Electronic Arts' (EA) issuance of disappointing preliminary results and revised guidance. EA's performance concerns, especially in its Global Football segment and its Dragon Age: The Veilguard title, seem to have had a ripple effect on TTWO.
Currently priced at $182.94, Take-Two Interactive's stock presents a mixed financial picture. With a market capitalization of $32.13 billion, it maintains a substantial presence in the interactive entertainment industry. The GF Value [link](https://www.gurufocus.com/term/gf-value/TTWO) currently classifies TTWO as "Modestly Overvalued," placing its GF Value at $142.79, which suggests a potential downside compared to its trading price.
Take-Two Interactive's financial metrics indicate some areas of concern. It has an Altman Z-score of 1.86, implying moderate financial stress. The company's Piotroski F-Score is low at 3, pointing towards operational challenges. Furthermore, the gross margin has been declining at an average rate of 1.6% annually. These figures highlight the importance of monitoring the company's financial strength.
Despite these challenges, Take-Two Interactive benefits from strong institutional support, with institutional ownership at 96.26%. This backing indicates confidence in its long-term potential, despite near-term hurdles. Additionally, the Beneish M-Score of -2.97 signals that TTWO is unlikely to be a financial manipulator.
Looking ahead, the next earnings announcement for TTWO is scheduled for February 6, 2025. Investors and analysts will be keen to see how the company navigates the dynamic gaming landscape, especially in light of recent industry developments that have impacted EA and potential knock-on effects for TTWO.
