Shares of Take-Two Interactive (NASDAQ: TTWO) delivered outstanding returns to investors over the last decade following the blockbuster sales performance of Grand Theft Auto V, which was released in 2013. And yet, over the last three years, the stock has fallen 11%. Investors can blame inconsistent revenue growth and lower earnings for the stock's sluggish performance. 

The stock has rallied 36% so far this year, which can largely be attributed to management's guidance for fiscal 2025, when bookings (a non-GAAP measure of revenue) are expected to jump to $8 billion, or 45% over estimates for fiscal 2024. That's a large increase, even for a company that averaged 16% annual top-line growth over the last 10 years. 

While management has several titles in development, smart investors know there is one game that can pull this level of sales in a single year, and that is Grand Theft Auto (GTA).

Continue reading

Source Fool.com