This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Take-Two And Grand Theft Auto: Buy Or Sell?

Chris Lau, Kapitall: Gamers are anxiously awaiting the next release of Grand Theft Auto, but what about the company's investors?

The stock market often reacts ahead of events, discounting or adding a premium for what it expects in the near future. Take-Two Interactive’s ( TTWO ) stock price is no exception. The company is set to release Grand Theft Auto 5 on September 17, 2013. The stock is up an incredible 86% from its yearly low, and just 4.6% from the $19.25 reached in late August. 

[Read more from Kapitall: Ford and GM are Growing: Will Tesla Have to Sell Cars to Compete?]

Expectations high

Analysts have high expectations for Grand Theft Auto. The franchise sold more than 125 million times, so when a new version of the game is released, there is a good chance that initial sales will be very strong. For the week ending August 24, 2013, pre-orders for the game on Xbox 360 were 1.48 million, and 962,800 on the PS3.

Analysts have a consensus earnings estimate of $2.51 per share for the fiscal year ending March 2014. For fiscal 2015, the estimate is much lower: $1.03 per share.

Other investing ideas

The run-up in Take-Two could fall victim to “selling on fact.” This means investors could sell the shares after Grand Theft Auto is released. And there are few alternative gaming stocks available at a discount. Electronic Arts ( EA ) is up more than 100% over a 1 year period. Activision Blizzard ( ATVI ) is up nearly 50%.

Click on the image below to see analyst ratings over time. Sourced from Zacks Investment Research. 

Dig Deeper:  Compare analyst ratings to annual returns  for stocks mentioned.


1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.07 -0.59%
FB $118.36 0.25%
GOOG $699.58 0.56%
TSLA $214.81 -3.50%
YHOO $37.06 2.90%


Chart of I:DJI
DOW 17,705.19 +53.93 0.31%
S&P 500 2,057.39 +6.27 0.31%
NASDAQ 4,738.7260 +13.0870 0.28%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs