Can Take Two’s Stock Decline Be Turned around after Quarterly Report?
Take Two is set to release its quarterly earning report and is enjoying a stock price bump today, but will that last?
For weeks, the Take Two (TTWO) stock has been considered a buying opportunity for investors because it has continued to decline. Now, the stock is climbing as the quarterly report is about to be released.
Should investors expect this stock to take off as soon as the quarterly report comes out? In four weeks, Take Two’s stock fell 5.31%. Then, the stock climbed 1.13% today in anticipation for the quarterly report.
The expectation is that the company will demonstrate earnings of $0.01 per share. If so, then that would show that the company EPS has declined from last year by 97.2%.
The company’s revenue is expected to be around $1.24 billion, which would be an increase of around 3% from the same quarter last year. Even though Take Two’s share price has dropped in recent weeks, the earnings per share estimate has increased, though only slightly (by 1.1%).
What Investors Need to Know about Take Two
We have looked at Take Two heading into its earnings reports in the past, and the same problems that persisted with the company then have plagued it this quarter as well. The company has few revenue streams that it can rely on, primarily earning revenue off of video games like Grand theft Auto Online that are several years old already.
The company is also faced with delays on its major release- Grand Theft Auto 6. Of course, when the game finally does release, Take Two stock should rise considerably, but that could only be a short-term spike.
Take Two has also had to lay off around 600 employees recently, which does not bode well for their expected earnings. The reason for the layoffs does not mean that the company is struggling, but it is part of a normal process for development when a major release nears completion. Now that Grand Theft Auto 6 is set to be released during a vague fall 2025 date, much of the work has already been done. The company can afford to lose a number of employees during the polishing up period.
Investors should expect the earnings report to reflect dying revenue streams and a limbo period for the stock as the company waits for the eventual release of the product that keeps them in business.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals