Take Two’s shares are getting a second look from investors after beating estimates and saying 2014 could be one of their best years ever. So is it "game on" or is it time to hit the reset button?
Game-maker Take Two Interactive Software is trading up today after reporting a great fourth quarter. The company’s revenues were $299.5 million, more than doubled its revenues from the previous year.
So, are shares of the maker of such games as "Grand Theft Auto" a steal at these prices?
The charts say that might just be so, says Enis Taner, Global Macro Editor at RiskReversal.com and Talking Numbers contributor.
The key for Taner is whether the price can break above $17.50 to $17.75 per share. "That area has been a resistance level on multiple occasions over the last five years," he says.
Gamers’ demand for "Grand Theft Auto V" may also cause traders to want to play Take Two’s stock. "I expect that multi-year resistance to break as traders and investors get more excited about next ‘Grand Theft Auto’s’ September release."
And, it’s not just GTA that’s working in Take Two’s favor, says Richard Ross, Global Technical Strategist at Auerbach Grayson and also a Talking Numbers contributor. "Digitally delivered games rose 192% and make up 27% of total sales. That’s driven by the blockbuster title 'Bioshock Infinite'".
As well, Ross believes the releases of Sony’s PlayStation 4 and Microsoft’s Xbox 720 will give Take Two an added boost. Those gaming consoles will be released around the same time as GTA-V.
"In the digital age, content is king."
- Consumer Discretionary