Why Take-Two Interactive Stock is Down 31% in 2022
Take-Two Interactive (NASDAQ: TTWO) shares are trailing a weak market this year. The video game developer's stock fell 31% in the first half of 2022, according to data provided by S&P Global Market Intelligence, compared to a 21% drop in the S&P 500.
That performance is partly driven by weakness in the wider video game industry, which is being pressured as consumers take a step back from digital entertainment following the pandemic demand spikes in 2020 and 2021. But Take-Two stock is also trailing its peers due to a few unique operating challenges.
Take-Two issued an earnings report in mid-May that pleased Wall Street but also failed to erase the stock's broader decline for the year. Sales were up 11% in fiscal Q4 thanks to solid demand in many of its major franchises such as Grand Theft Auto, Red Dead Redemption, and NBA 2K22. And Take-Two remained solidly profitable.
Source Fool.com
