TTWO Stock Forecast & Price Target

Take-Two Interactive has demonstrated impressive growth metrics, with recurrent consumer spending surging over 30%, daily active users (DAUs) increasing by nearly 20%, and monthly active users (MAUs) showing nearly 10% growth, largely due to gameplay enhancements. The mobile segment is anticipated to expand by $250 million, and the launch of GTA VI on console is expected to significantly boost engagement with GTA Online, further enhancing revenue streams. Additionally, the company forecasts sequential increases in net bookings driven by a strong pipeline of new game releases, particularly within key franchises like NBA 2K, which is projected to grow in the low double digits.

The analysis indicates a significant expected decline in revenue for Take-Two Interactive, with projections estimating a drop of approximately $500 million year-over-year in FY:27 due to weaker performance from the PC version of Grand Theft Auto and related catalog sales. Additionally, the mixed performance of mobile games, where only low single-digit growth is anticipated, further compounds investor concerns, especially following disappointing results from certain titles like Empires & Puzzles. Furthermore, the company's failure to adjust its full-year guidance upward despite better-than-expected Q2 results reflects a cautious outlook, suggesting challenges ahead for maintaining revenue momentum.