Why Take-Two Interactive Stock Rose 55% in 2023
Take-Two Interactive Software (NASDAQ: TTWO) shareholders leveled up this past year. Their stock gained 55% in 2023, surpassing the 24% rally in the S 500 and the 43% surge in the tech-heavy Nasdaq Composite. That outperformance also allowed Take-Two to leave video game developer peers like Electronics Arts far behind.
Take-Two's big returns occurred despite a continued spending slowdown in the industry that put a lid on growth for most competitors. It was mainly driven by enthusiasm about its upcoming release slate.
Take-Two is on track to achieve about $5.5 billion of sales for the current fiscal year, which would translate into a modest 4% uptick. Revenue has been pressured by sluggish consumer spending and a few canceled and delayed product launches. These cancellations also spurred one-time charges that drove significant losses for the business in 2023. Take-Two reported over $500 million of red ink last quarter, translating into a $3.20 per share loss.
Source Fool.com
