2 Reasons to Buy Take-Two Interactive Stock, and 1 Reason to Avoid It
Wall Street is playing to win with Take-Two Interactive (NASDAQ: TTWO) stock right now. The video game developer is handily beating the market in 2023, even as peers like Electronic Arts (NASDAQ: EA) are generating underwhelming returns. Both companies are preparing for a modest growth year ahead, after all, as gamers become more selective in their spending.
The bullish thesis is compelling for Take-Two, considering all the success it has had in building a larger content portfolio. Yet investors should know about the main risks before buying the stock. With that in mind, let's look at some huge factors likely to influence long-term returns from here.
Large acquisitions can be disappointing for investors since the costs are concrete and sometimes underestimated, while the benefits frequently don't meet the high expectations that were present when the deal was struck. Luckily, this hasn't been the case with Take-Two's 2022 purchase of Zynga. The move helped push sales higher by 53% year over year in the most recent quarter and catapulted the company into the top ranks of video game publishers.
Source Fool.com
