Shares of gaming company Take Two Interactive (TTWO.US) are gaining nearly 12% after the fima conveyed that it will deliver the next installment of one of the most popular titles in history, Grand Theft Auto VI (GTA), next year.
- In a commentary, the company conveyed that it sees its future counting particularly positively from fiscal 2025 (this one will start in April 2024). That's when it intends to release several more groundbreaking games.
- Take Two Interactive estimates that the new titles will bring in up to $8 billion in bookings and $1 billion in operating cash flow. The company intends to maintain the momentum in future years as well.
- In the most recent fiscal year, Take Two reported $5.3 billion in revenue, while previously it was often around $3 billion. The company was helped by the acquisition of Zynga, a major developer in the mobile app market.
- Industry commentators point out that in order to reach $8 billion the company would have to make significant acquisitions, release twice as many games or at least one sales hit. However, this seems possible if TakeTwo really does release GTA VI.
TakeTwo Interactive (TTWO.US) shares, D1 interval. The SMA100 average crosses the SMA200 from below, forming a 'golden cross' formation, following a bullish upward gap caused by the company's comments. Source: xStation5
