Take-Two Interactive is a Games developer based in the USA.

Take-Two Interactive Software, Inc. (TTWO) is an American video game holding company based in New York City and founded in September 1993. The company owns two major publishing labels, Rockstar Games and 2K, which operate internal game development studios and develop popular games such as Grand Theft Auto.

The financial of TTWO are very good. Current market capitalisation is $23bn with 19/20 revenue at $3.08bn. Profit after tax was good at $404m. Looking into 20/21 the numbers look mixed with Q1 & Q2 revenue a combined $1.68bn with profit at $187m, if this can continue revenue will rise around 11% to around $3.33bn in 20/21 and profit will fall to around $380m - giving a mixed income statement outlook. Looking at the balance sheet, the last quarter saw total assets at $5.8bn with cash on hand totalling $2.8bn. Total liabilities were $2.9bn, leaving $2.9bn in net positive assets. The cash reserves are impressive.

From a technical aspect TTWO looks mixed with upside and downside potential. MACD is negative on the daily timeframe with RSI reading 46.1. Looking into the chart too, there is an upward channel however we are nearer to the top so a downside move is very possible. Looking to the downside initial supports sit $193 (cluster support) followed by major trend line support at $180. To the upside initial resistance sits at $211 with further targets in extension of $230. Representing at 15% increase from current levels.

Overall TTWO is very mixed with upside in the medium term, but in the short term, downside risks play. Another factor to TTWO is the P/E ratio, it is quite high at 47.6 when compared to competitors Activision at 31 and Nintendo at 17. However a new GTA may be released in the coming year with the release of the new games consoles. TTWO could be a good buy at a lower price, but buying now would be a risk unless it was a long term position. Buying lower could be a good opportunity and a good addition to a portfolio.