Key Takeaways:
- Take-Two Interactive is executing a comprehensive strategy focused on delivering premium entertainment experiences while expanding its mobile business .
- TTWO stock could reasonably reach $387/share by the end of 2028, based on our valuation assumptions.
- This implies a total return of 66% from today’s price of $233/share, with an annualized return of 21.2% over the next 2.6 years.
Take-Two Interactive (TTWO) is establishing new benchmarks in the entertainment industry through strategic franchise management and diversified content creation.
The gaming giant combines its iconic console and PC game properties with rapidly expanding mobile operations to capture evolving consumer preferences across gaming platforms.
The entertainment technology leader serves millions of players worldwide through its comprehensive portfolio spanning Grand Theft Auto, NBA 2K, Borderlands, and mobile hits like Toon Blast and Match Factory!.
This spans from premium console experiences through Rockstar Games to mobile entertainment via Zynga’s diverse portfolio.
TTWO stock benefits from exceptional momentum, delivering $1.42 billion in fiscal Q1 net bookings that exceeded expectations and 17% recurrent consumer spending growth year-over-year.
Take-Two demonstrates clear execution across all segments, with mobile business vastly exceeding expectations and core franchises maintaining strong engagement levels.
Take-Two’s strategic transformation under CEO Strauss Zelnick focuses on delivering the highest quality entertainment experiences while building sustainable franchise value and preparing for what management expects to be a record fiscal 2027 performance that establishes a higher baseline for future growth.
Additional catalysts include Grand Theft Auto V reaching 215 million units sold, NBA 2K25 achieving 11.5 million units with 48% recurrent spending growth, and mobile titles like Toon Blast growing 22% year-over-year while expanding monetization capabilities.
With Q1 results showing strong profitability and raised full-year guidance to $6.05-6.15 billion in net bookings, TTWO stock positions for sustained expansion as premium content strategy drives long-term value creation.
Here’s why TTWO stock could deliver strong returns through 2028 as it scales market leadership and captures expanded entertainment opportunities globally.
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What the Model Says for TTWO Stock
We analyzed the upside potential for TTWO stock using valuation assumptions based on its franchise strength and expanding market opportunity across entertainment platforms.
Analysts see a significant opportunity ahead for Take-Two given its premium content strategy, successful mobile integration, and systematic approach to building sustainable franchise value while maintaining industry-leading quality standards.
Take-Two’s diversified entertainment portfolio provides multiple growth vectors. At the same time, its upcoming release pipeline validates that strong execution can drive market share gains and revenue expansion in the interactive entertainment category.
Based on estimates of 15% annual revenue growth, 22% operating margins, and a normalized P/E valuation multiple of 43x, the model projects TTWO stock could rise from $233/share to $387/share.
That would be a 66% total return, or a 21.2% annualized return over the next 2.6 years.
Our Valuation Assumptions
TIKR’s Valuation Model lets you plug in your own assumptions for a company’s revenue growth, operating margins, and P/E multiple, and calculates the stock’s expected returns.
Here’s what we used for TTWO stock:
1. Revenue Growth: 15%
Take-Two delivered $1.42 billion in net bookings in Q1, while raising its full-year outlook to $6.05-6.15 billion, representing 8% growth at the midpoint.
Growth was driven by mobile business outperformance, continued Grand Theft Auto series strength, NBA 2K franchise expansion, and strategic positioning for fiscal 2027, which management expects to achieve record net bookings levels.
TTWO stock expects momentum from upcoming major releases, including Borderlands 4, NBA 2K26, and Mafia: The Old Country, plus continued mobile portfolio expansion and recurrent consumer spending growth.
We used a 15.1% forecast reflecting Take-Two’s proven ability to execute a premium content strategy while building long-term franchise value and expanding market presence across entertainment platforms.
2. Operating Margins: 22%
Take-Two maintains strong profitability fundamentals with disciplined cost management and strategic investment in high-return content development and marketing initiatives.
A focus on operational efficiency through franchise leverage and targeted investment supports margin expansion while funding product development and market expansion initiatives across core console and mobile segments.
Management targets sustainable margin improvement while investing in strategic growth areas, reflecting disciplined capital allocation balancing profitability with market leadership and long-term competitive positioning in premium entertainment.
3. Exit P/E Multiple: 43x
TTWO stock trades at premium multiples reflecting the company’s market leadership position and expanding addressable market opportunity across interactive entertainment segments.
We maintain growth-oriented valuation levels given Take-Two’s franchise advantages, proven execution across multiple entertainment platforms, and systematic approach to building sustainable competitive advantages through quality content creation.
Long-term competitive advantages from premium intellectual property, comprehensive entertainment platform integration, and operational scale should support premium valuations as execution demonstrates sustained market leadership and profitable growth.
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What Happens If Things Go Better or Worse?
Different scenarios for Take-Two Interactive stock through 2031 show varied outcomes based on execution and entertainment market expansion success: (these are estimates, not guaranteed returns):
- Low Case: Slower franchise growth and competitive pressure → 11% annual returns
- Mid Case: Successful content execution and market expansion → 21% annual returns
- High Case: Strong growth across all segments and platform innovation → 22% annual returns
Even in the conservative case, TTWO stock offers attractive returns supported by the company’s premium franchise portfolio and proven ability to deliver industry-leading entertainment experiences.
The upside scenario for TTWO stock could deliver exceptional performance if Take-Two successfully executes its record fiscal 2027 expectations and captures market share through continued content innovation and strategic platform expansion.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
