Take-Two Interactive Earnings Alert: Take-Two after earnings
Remember heading into this report. The stock had rallied about 20 in the past three months up more than 100 percent from its lows last march. As for the print q3 bookings, 814 million a beat q4 bookings guidance, also a beat on the call of ceo strauss zelnick talked about an incredibly strong holiday season results he said, exceeded expectations as for gta, 5 and 2020, more copies sold. He said than in any year except 2013, when it first launched nba 2k21 pointed out, net bookings grew 48 percent engagement there. He called incredibly strong analysts did ask the bigger question here about whether trends we’re seeing in video games are sustainable. Straus zelnick saying, post pandemic demand will be higher than pre pandemic. There’S been a shift. He says in favor of this kind of entertainment, but doesn’t know if there’s going to be some kind of fall off when people can once again enjoy live entertainment. I also did check in though, with mkm’s eric handler now to get his take on the results. Engagement in the state home environment he says, is strong companies on pace for its third consecutive record year. Having said that, eric is on the sidelines here, a neutral rating the beat and bigger raise we saw here were not huge surprises. He says and looking ahead 2022 growth process prospects, he argues and the lack of visible catalysts are concerns melissa back to you josh. Thank you, josh lipton. The stock is hitting after our session lows right now down by five and a quarter percent.
It does strike me and i’m, not a gamer, and you know full disclosure here. If it’s not obvious to you already but tim, it would seem to me that after the pandemic, people would just by default not have as much time to spend on games period yeah, but but that that’s right and i know look i i know you’re hooked on Grand theft auto and you just don’t – want to publicly admit it, and and therefore this is no but look – i i think you’ve pulled forward. Some demand you’ve certainly had an audience that has been looking for something to do, but you also have trends and secular trends in terms of gaming, which are replacing linear tv and other forms of of either online, for especially for the demographic that’s focused on gaming um. So i i like valuations here, i think they’re a little bit stretched, but at 35 times 22 um. This is, i think, at 2 and 30 cents to me 230 stock, no problem, um, nba, 2k, disappointing. Actually, those numbers – i i think i think the street was expecting closer to 65 growth on this, but i i love this space and i’m in it for the long haul. Why the pullback do you think i was at the 20 percent run up into the quarter in the past three months, yeah yeah. I made an all time high today, i think 215 or so so i mean, i guess.
Of course you know. Tim’S point is right. I don’t think it’s expensive at 35 times, but maybe the market does, but by the way this stock has sold off a number of times over the last year and a half on exactly those concerns and those solves have been short lived and the one number that Josh, who did a fabulous job by the way didn’t mention was operating? Margins came in really strong at 21.3 percent. The street was in the low 18s. That speaks volumes. I think in terms of how well the business is being run. So you know you might see another day two of itself in this name, but you can go back and look. This has happened before and every single time much like amd a couple weeks later, it’s making new all time highs. I think that’s. What we’re gon na see again with take two karen yeah, i think, uh, that there might be a little bit of disappointment that glue mobile, which you remembered that i had one point owned.