Stock Analysis | Take-Two Interactive Outlook - A Bearish Technical Trend and Strong Analyst Support

Market Snapshot

Take-Two Interactive (TTWO) is facing weak technical momentum but enjoys strong analyst backing. The stock has risen 4.46% recently, aligning with market optimism, yet technical indicators suggest caution and a potential decline.

News Highlights

Recent headlines include:

• SM Entertainment and Tencent Music's partnership could reshape global entertainment dynamics. While not directly related to TTWO, it highlights a broader shift in media and gaming alliances.
• Two Sigma Advisers LP’s large position increase in Accel Entertainment signals big-money confidence in the sector, which may indirectly affect Take-Two’s stock as a gaming peer.
• Changes to U.S. visa policies and vaccine strategies are more macroeconomic in nature but could impact global consumer behavior and digital entertainment trends over time.

Analyst Views & Fundamentals

Analyst Ratings

Analysts remain optimistic. The simple average rating is 4.50, while the performance-weighted rating is 4.04. With eight active institutions, the ratings are fairly consistent—four “Strong Buy” and four “Buy.” These scores suggest a bullish consensus, though the spread indicates room for interpretation.

Fundamental Scores

Our model assigns an internal diagnostic score of 7.82, highlighting strong fundamentals. Key drivers include:

• Net cash flow from operating activities per share (YoY growth): -543.25 (Score: 3) — strong operational cash generation, though growth is negative.
• Shareholders’ equity growth (YoY): 2.30% (Score: 3) — shows modest improvement in equity.
• Annualized return on equity: -21.89% (Score: 4) — indicates strong ROE performance.
• Basic earnings per share (YoY): 18.33% (Score: 1) — positive growth, though not a leading factor.
• Profit-MV: -12.95% (Score: 2) — suggests decent pricing power but room for improvement.

Money-Flow Trends

Big-money flows are mixed. The fund-flow score is 7.67, indicating a generally positive trend:

• Extra-large and large investor flows are positive (58.1% and 49.2% inflow ratios, respectively).
• Small and medium flows are also positive (50.5% and 49.6% inflow ratios).

This suggests that both retail and institutional investors are showing interest in the stock, though the bearish technical signals suggest caution before entering new positions.

Key Technical Signals

Our technical model gives TTWO an internal diagnostic score of 2.78, signaling a weak trend and suggesting to avoid the stock:

• Marubozu White (Score: 1.24) – a bearish candlestick pattern indicating indecision or potential reversal.
• MACD Golden Cross (Score: 2.72) – a neutral signal with a poor historical win rate of just 44.44%.
• WR Overbought (Score: 2.92) – suggests price is overextended and may retrace.
• Bullish Engulfing (Score: 4.23) – a rare positive pattern but not enough to offset the bearish signals.

Recent chart patterns include:

• 2025-08-28: WR Overbought and Marubozu White signaled a potential downturn.
• 2025-09-02: WR Overbought and Bullish Engulfing indicated mixed signals.

The overall trend is weak, with three bearish indicators, zero bullish ones, and no strong reversal patterns on the horizon.

Conclusion

Take-Two Interactive is showing mixed signals. Analysts are optimistic, and fundamentals remain strong, but technical momentum is bearish. Given the current technical weakness, it may be wise to wait for a pull-back or clearer bullish signals before entering or adding to a position in TTWO. Keep an eye on upcoming earnings and any follow-up from major analysts like Mike Hickey and Christopher Schoell.