Jim Cramer Says Take-Two, Akamai Deserve to Go Higher

NEW YORK (TheStreet) -- Take-Two Interactive (TTWO) deserves to be valued as a "hit house" over time, said TheStreet's Jim Cramer, portfolio manager of the Action Alerts PLUS portfolio, on CNBC's "Mad Dash" segment Tuesday.

Speaking before the opening bell, Cramer said the video game publisher reported quarterly results that were much better than Wall Street was expecting.

"They're showing some continuity," Cramer said. "They now have 10 titles that sell more than five million units. That's a pretty good monetization."

Cramer described the company's popular Grand Theft Auto franchise as "the gift that keeps giving," but he said that other games, including Borderlands, NBA and Evolve were doing very well, too.

The company offered lower guidance for next year, Cramer said, but he added that it doesn't seem to matter.

Cramer noted that the stock peaked in January and said the ensuing selloff was based on fears that the company's last quarter in 2014 was its "last good quarter." He added, "Clearly not."

"I like the fact that this is going higher. I think Strauss is doing a good job," he said, referring to Take-Two CEO Strauss Zelnick.

Following the opening bell, shares of Take-Two surged Tuesday and were up $3.96, or 16.4%, at $28.16, at around 1:40 p.m. EDT.

TTWO Chart

TTWO data by YCharts

Cramer then turned to Akamai (AKAM) and noted that Wall Street analysts had reached differing conclusions about the company. Oppenheimer has downgraded the stock, while UBS likes it, Cramer said.

Akamai has a cybersecurity unit that makes the company more valuable than people realize, Cramer said.

Although many people are aware that Akamai deals with streaming video and has been linked to a company that's doing very well in that space (Cramer made clear that company was Netflix (NFLX) by writing its ticker symbol on a video screen) he said Akamai fails to get enough credit for its cybersecurity business.

"I would not sell this stock," he said. "I'd be a buyer on weakness."

Shares of Akamai were down 32 cents, or 0.4%, at $77.62 Tuesday afternoon.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

More from Investing

Why The FANG Stocks' Dominance May Not Be So Bad For The Market

Why The FANG Stocks' Dominance May Not Be So Bad For The Market

Danica Patrick's Final Race at 2018 Indianapolis 500: What She Thinks About Cars

Danica Patrick's Final Race at 2018 Indianapolis 500: What She Thinks About Cars

At End of May, Investors Signalling They May Stay Away

At End of May, Investors Signalling They May Stay Away

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Neel Kashkari: The Heart of Our Financial System Is More Radioactive Than Ever

Neel Kashkari: The Heart of Our Financial System Is More Radioactive Than Ever