TTWO - Embedded Expectations Analysis - 2019 06 24
Take-Two Interactive Software, Inc. (TTWO:USA) is currently trading near recent averages relative to UAFRS-based (Uniform) Earnings, with an 18.7x Uniform P/E, implying bearish expectations for the firm. Furthermore, management has concerns about Red Dead Redemption and NBA 2K sales growth, their ability to drive engagement through offerings, and Rockstar content releases.Specifically, management may lack confidence in their ability to expand into Europe and Asia, continue Red Dead Redemption and NBA 2K sales growth, and drive consumer engagement through their offerings. Moreover, they may be exaggerating the expansion of competitive gaming competitions, the potential of a subscription platform, and the performance of Red Dead Online. Also, they may be concerned about future Rockstar content releases, the loot box mechanic within games, and Red Dead Redemption 2 comps.
Take-Two Interactive Software is a developer, publisher and marketer of interactive entertainment for consumers. The company develops and publishes products principally through its two wholly-owned labels Rockstar Games and 2K, as well as its Private Division label and Social Point, a developer of mobile games. The company's products are designed for console gaming systems such as the Sony Computer Entertainment, Inc. PlayStation?4, Microsoft Corporation Xbox One?, and Xbox 360?, the Nintendo Switch, and personal computers, including smartphones and tablets. The company delivers its products through physical retail, digital download, online platforms and cloud streaming services.
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