Take-Two Interactive to join Nasdaq-100 on December 18
Take-Two Interactive (TTWO) will join the Nasdaq 100 (^NDX) effective December 18, replacing biotech firm Seagen (SGEN) ahead of the opening bell. The video game developer behind hits like the Grand Theft Auto series will become part of the tech-focused index tracked by major ETFs and funds.
Yahoo Finance's Seana Smith and Brad Smith break down the details of this trending ticker.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Video Transcript
SEANA SMITH: We are also taking a look at Take-Two Interactive, the video game developer making its way into the NASDAQ 100 index. Take-Two will be replacing Seagen. We were just talking about the acquisition there from Pfizer from the tech-heavy NASDAQ. These changes are effective prior to the opening bell on Monday, December 18. That's offering a bit of a boost here to Take-Two shares. You're looking at gains of just about 3%.
Of course, we're seeing a continuation of the jump that we saw yesterday on the heels of that ruling in the battle between Google and Epic Games. That ruling also looked to position or viewed widely pretty much as a big win here for Take-Two Interactive, just given the fact that they get so much of their revenue from mobile gaming.
But the inclusion in an index like the NASDAQ 100, obviously good news here for any company.
BRAD SMITH: Yeah, that means anybody that owned the NASDAQ 100, they're going to own Take-Two Interactive, whether you like it or not. But I think a lot of people out there, they've got a few things to like. The stock is up. And, of course, past performance does not equal future results. But the stock is up year to date by about 57%.
You've got GTA. They hit that button in this most recent earnings report here. And then at the end of the day, looking out to the entire pipeline of games and where they can continue to lean into some of the title strength that they do have.
I think the entire console type of mix that's out there is also becoming a little bit more flat here, especially as there are more requirements as a result of the Microsoft Activision deal, even for there to be more ability for gamers to be able to play specific titles across consoles. I think acquisition put that squarely into focus because you had a lot of the regulators saying how does this not harm competition, harm availability of titles.
And I think for Take-Two Interactive, a lot of the other tertiary names, they perhaps were winners as a result of what was coming to fruition or coming about as a result of a lot of regulators looking into that deal. And saying, OK, now for the entire console space, we need to look across and see and make sure that this is one where consumers can have access to these titles regardless of the console that they're on as well.
