Take-Two Down Makes No Sense, Buy Stock: Cramer

Jim Cramer gives his thoughts on Take-Two Interactive.
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Take-Two Interactive got an upgrade from BMO Capital Markets on Tuesday, May 26.

"We are upgrading shares of Take-Two (TTWO) to Outperform from Market Perform. We anticipate stay-at-home tailwinds to persist for the video game industry and see the industry as defensive in times of economic uncertainty. TTWO's performance in 4Q illustrates the strength of its core franchises during this time of uncertainty and we are encouraged by the company's strategy to seize opportunities in new platforms, distribution models, and game genres, which should provide more stable, growing earnings and cash flow over time," wrote analysts at BMO Capital Markets in a note released on Tuesday.

Jim Cramer and his team at Action Alerts PLUS have a position in Take-Two. 

Cramer, just two weeks ago, said that he thinks investors need to take a look at Take-Two over Electronic Arts and Activision Blizzard.

And last month on the Action Alerts PLUS monthly call, Cramer picked Take-Two stock as his gaming stock for the coronavirus pandemic.

"While economies are opening and consumers may not be staying home as much going forward, we expect many current stay-at-home tailwinds for video games to persist. Given the sticky nature of video games, we expect engagement levels to stay high and for new and returning lapsed players to continue to play," the note continued.

Watch the video above to see what Cramer has to say about Take-Two now.

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