Why I'm Not Buying Take-Two Interactive Stock Right Now, and Considering This Stock Instead

For growth investors, the video game industry is one that's worth watching. Audience sizes are expanding even among the most established developers, and monetization trends keep improving following the post-pandemic lull.

Meanwhile, video games are becoming far more valuable products now that they're sold through a software-as-a-service (SaaS) model. Rather than seeing a single $60 revenue spike for a title, companies often book a full year (or more) of regular income from a release in addition to that initial cash outlay -- once you factor in many rounds of micro transactions and content updates.

Take-Two Interactive Software (NASDAQ: TTWO) is among the most popular stocks in the industry today, mainly because the company is about to release several large games that should propel it toward $8 billion of annual revenue. That's about where the industry giant Electronic Arts (NASDAQ: EA) sits in its yearly sales haul. But EA might still be a better buy than its smaller peer. Here's why.

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Source Fool.com