NASDAQ:TTWO Take-Two Interactive Software, Inc.

ISIN: US8740541094
Communication ServicesInteractive EntertainmentVideo Games
NASDAQ · New York, NY · Interactive Entertainment (GICS Communication Services) Analysis Status: Starting
$239.57
-1.69%
16 Jul 2026 · Signal v6
DISCLAIMER: This is a quantitative framework for educational purposes only. It is not financial advice. Always do your own research and consult a licensed financial advisor before making investment decisions.

Take-Two Interactive Software, Inc.

Take-Two Interactive is one of the world's largest video-game publishers, built around three labels: Rockstar Games (Grand Theft Auto, Red Dead Redemption), 2K (NBA 2K, WWE 2K, Borderlands, Civilization) and its Zynga-anchored mobile arm (Words With Friends, Toon Blast, Match Factory). Its core business is developing and selling blockbuster interactive-entertainment titles and monetising them long after launch through recurrent consumer spending (in-game currency, add-ons, mobile). What sets it apart is the strength of a handful of franchises — Grand Theft Auto and NBA 2K are cultural fixtures with pricing power and multi-year engagement tails few rivals can match. For a reader: think of it as an IP-owner whose value swings on the release cadence of a small number of enormous games, with the launch of Grand Theft Auto VI (due 19 November 2026) the single most anticipated event in the industry's history and the dominant driver of its earnings over the next three years.

HorizonSignalComposite ScoreConfidenceKey Driver
Short-term (1–3 mo)HOLD5255%Buy on confirmation — no technical/catalyst trigger yet (short cap)
Medium-term (6–12 mo)BUY6060%High quality + trend + sector tailwind; STRONG BUY blocked by the full valuation
Long-term (3–5 yr)BUY6362%Durable IP franchise into the GTA VI cycle; not amplified — full price
Next update: 2026-07-30 — default +14d (no impactful event inside the 14-day window — Q1 FY27 earnings are dated 2026-08-07 and GTA VI launches 2026-11-19, both beyond the window; the 14-day refresh runs first and re-schedules once earnings enters the window)
Table of Contents
1Five-Pillar Scorecard2Hard Gates & Do-Not-Buy Status3Pillar Detail: Business Quality4Pillar Detail: Valuation Attractiveness5Pillar Detail: Underlying Drivers6Pillar Detail: Economic Alignment7Pillar Detail: Entry/Exit Timing8Economic Event Risk9Multi-Timeframe Technical Analysis10Price Chart (6-Month Daily)11Scenario Summary12Entry / Exit Rules13Position Sizing Context14Calibration Snapshot15Data Sources & Methodology
1

Five-Pillar Scorecard

Five independent scores — each 0–100 with its own confidence. The three fundamental pillars (Quality / Valuation / Timing) set the base BUY/HOLD/SELL via the Decision Matrix; the two context pillars (Underlying Drivers, Economic Alignment) then amplify a BUY to STRONG BUY or a SELL to STRONG SELL when both corroborate.

Business Quality

72
strong (IP moat)
conf 72%

Valuation Attractiveness

44
full (~23% above warranted fair)
conf 78%

Entry/Exit Timing

58
improving (higher-TF uptrend)
conf 62%

Underlying Drivers

72
Tailwind
conf 66%

Economic Alignment

76
Trend-Following
conf 70%
2

Hard Gates & Do-Not-Buy Status

Binary safety checks — any TRIGGERED gate is a hard cap regardless of the scores above; CAUTION gates are sizing notes.
Gate 1 — Financial Distress
Net-cash bias (debt/mkt-cap 0.06, cash/sh ~$10.7); current ratio 1.24. No distress. Interest coverage is negative only because GAAP operating income is near zero — a lifecycle artefact, not leverage stress; the balance sheet is sound.
Gate 2 — Earnings Event Risk
Q1 FY27 earnings dated 2026-08-07, which is >14 calendar days out. Not within the 14-day window, so the timing-confidence cap does not fire this run.
⚠️
Gate 3 — Valuation Ceiling
NOT triggered, but full. On the normalised post-GTA-VI lens (trailing GAAP P/E is meaningless — net loss), the clean first-full-year (FY28) forward P/E is ~24.0x ($239.57 / consensus FY28 EPS $9.99) — BELOW the 26x Communication-Services guardrail line, so the guardrail arm does not fire. It is 1.23x its ~19.5x warranted multiple (r 9.0% = 4.5% 10-Y [macro 2026-07-14] + 4.5% ERP + 0% add-on; disciplined post-launch g_near 6%, g_term 3%) — the Full band (1.20–1.40), below the 1.40 Expensive/ceiling threshold. So the gate does NOT cap the signal, but a Full-band name is NOT eligible for STRONG-BUY amplification.
⚠️
Gate 4 — Accounting / Dilution
Share count rose ~172.3M → 185.3M over two years (~3.7%/yr, Zynga-deal stock + SBC) — below the 5%/yr dilution arm, so the gate does NOT trigger, but flag the SBC load. The large GAAP–bookings gap is a lifecycle feature (deferred net bookings, acquired-intangible amortisation), transparently disclosed — no revenue-recognition concern. Caution, not triggered.
Gate 5 — Regulatory / Binary Event
No pending regulatory ruling. GTA VI is a commercial launch, not a binary regulatory event; its risk is release-timing/reception, handled in the driver and scenarios, not as a binary gate.

No hard gate fires — but the valuation is Full, so STRONG BUY is off the table

TTWO is a genuinely high-quality franchise owner and the sector regime is a tailwind, so Medium and Long carry a plain BUY. But on the disciplined warranted-multiple anchor it trades ~23% above fair value (Full band) — that blocks any STRONG-BUY amplification, and it means there is no valuation discount to reward a buyer today. The Conviction Ladder therefore reads Wait (§12): BUY-rated to own, but no entry edge — accumulate on a pullback, not at range highs. No Do-Not-Buy trigger fires: the multiple is Full, not deep-expensive, and TTWO is not in the AI-concentration cohort that would arm Trigger 2b.

3

Pillar Detail: Business Quality

A deep dive into the Quality score: business economics, moat, ROIC and the industry benchmark.
Business Quality — Pillar Score
High-quality IP owner; GAAP-unprofitable by lifecycle, not distress
72
conf 72%

Lifecycle: Growth (pre-inflection on a franchise catalyst). TTWO is scored on the growth/interactive-entertainment lens, not mature-company earnings. The right top-line KPI is net bookings (recognised bookings adjusted for deferred content), not GAAP revenue — management guided FY27 net bookings of $8.0–$8.2B (FY26 ended Mar-2026 GAAP revenue ~$6.66B TTM), the step-up driven by GTA VI. GAAP earnings are a net loss (TTM EPS ~−$1.61) because of heavy amortisation of Zynga acquired intangibles and game-development cost deferrals — this is a lifecycle artefact, not operating distress (see §4 for the normalised earnings decomposition). We therefore do NOT score P/E on trailing GAAP EPS.

Sub-signalReadingScore
Net-bookings trajectoryFY27 guide $8.0–$8.2B vs ~$6.7B revenue base — a franchise-led step-change; strongest top-line inflection in the peer group82
Gross margin (TTM)57.2% — healthy for a AAA publisher; expands post-launch as high-margin GTA content scales70
Cash generationFCF positive but thin pre-launch (TTM FCF/sh ~$2.43, P/FCF ~99x) — the launch is the FCF-inflection event; not yet a cash machine52
Balance-sheet healthNet-cash bias (debt/mkt-cap 0.06, cash/sh ~$10.7), current ratio 1.24 — sound74
Revenue durability / diversificationConcentrated on a few tent-pole franchises (GTA, NBA 2K) — high quality but launch-cadence-dependent; mobile (Zynga) adds recurrent ballast66

Industry benchmark — franchise IP strength + bookings growth

No single sector composite fits a pre-launch publisher. The relevant benchmark is franchise IP strength paired with the net-bookings growth trajectory: GTA and NBA 2K are top-tier, durable, pricing-powerful IP, and the FY27 bookings guide implies ~+20% growth off the base. Benchmark score: 78/100 — top-quartile IP, mid-quartile monetisation breadth.

Pricing Power

80
GTA/NBA 2K command premium pricing + recurrent spend

Network Effects

62
GTA Online / live-service communities; not a true two-sided network

Switching Costs

55
Player time/spend is contestable vs Fortnite/Roblox — see Competitive Environment

Cost Advantage

58
Scale in AAA production, but development cost is enormous and rising

Intangible Assets

85
GTA is arguably the strongest single IP in gaming

Competitive Environment (step 7c)

Direct rivals: Electronic Arts (EA — sports/live-service), Microsoft/Activision-Blizzard (Call of Duty, Xbox), Sony (first-party PlayStation), Ubisoft (open-world, structurally weak), Tencent (mobile + stakes across the industry), and the engagement-share attackers Roblox and Epic/Fortnite. Share/engagement trajectory: TTWO's premium-console IP is defensible and its GTA/NBA 2K share is stable-to-rising into the launch, but the moat-erosion vector is competition for time and spend — free-to-play live-service (Fortnite, Roblox) and mobile capture a growing share of player hours, which is why Switching Costs and Cost Advantage score in the 50s rather than the 80s. GTA VI is the counter: a generational release that pulls engagement back. This read feeds the Switching-Cost / Cost-Advantage sub-scores and propagates to the §11 Bear (live-service engagement loss) and §12 thesis-invalidation.

RivalVectorTrajectory
EASports live-service (FC, Madden) vs NBA 2K/WWE 2KStable — parallel franchises, limited direct overlap
Microsoft / ActivisionConsole platform + Call of Duty shooter shareRising platform power (Game Pass) — a structural share threat
Roblox / Epic (Fortnite)Engagement / time-and-spend, esp. younger cohortsRising — the key erosion vector for switching costs
Tencent / Sony / UbisoftMobile scale; first-party; open-worldMixed — Ubisoft weak, Tencent/Sony strong-stable

ROIC & capital allocation: ROIC is depressed pre-launch (GAAP operating income near zero) — the Zynga acquisition weighed on returns and the market is now underwriting the post-GTA-VI reset. Capital allocation is mixed: no dividend/large buyback (cash conserved for the launch), and the Zynga deal is still being digested. Management (CEO Strauss Zelnick, long-tenured) has a credible AAA-execution record. Net Quality 72 — clearly a high-quality IP franchise (≥ 65) on moat + bookings trajectory, held below the 80s by the GAAP-loss/thin-FCF lifecycle position and the live-service engagement threat.

4

Pillar Detail: Valuation Attractiveness

Sector-appropriate multiples, FCF yield, reverse-DCF implied growth, embedded optionality, and the analyst-consensus cross-check.
Valuation Attractiveness — Pillar Score
Full — first-full-year (FY28) forward P/E 24x is ~23% above warranted fair value (~$195); below the 26x guardrail
44
conf 78%

Basis: forward (normalised post-GTA-VI) P/E — trailing GAAP P/E is meaningless. TTWO carries a TTM GAAP net loss (reported P/E −148x is not usable), so we anchor on the first full GTA VI year. FY26 (ended Mar-2026) is pre-launch; FY27 is a stub year (only ~4 months of the 19-Nov-2026 launch), so its 35.7x P/E is a trough-earnings artefact — anchoring on it would call the name "expensive" at trough EPS, the mirror of the cyclical trap the framework warns against. FY28 ($9.99 EPS) is the first full launch year and the correct normalised base.

Multiple (clean)ValueRead
FY28-forward P/E (EPS $9.99) — the anchor24.0xBelow the 26x guardrail; 1.23x warranted → Full
FY27-forward P/E (EPS $6.72) — stub year35.7xTrough-earnings artefact (only ~4mo of GTA VI) — not the anchor
FY29-forward P/E (EPS $10.80)22.2xFair-ish 3yr out, discounted
EV/Sales (TTM revenue basis)~6.9xRich vs the base; falls sharply on the FY27 bookings step
FCF yield~1.0%Very expensive on cash today — launch is the FCF-inflection

Warranted-multiple anchor

r = 9.0% (10-Y 4.5% [macro 2026-07-14] + 4.5% ERP + 0% risk add-on, Business Quality ≥ 65). g_near = 6% (disciplined: 0.75× the FY28→FY31 consensus EPS CAGR of ~6.4% ≈ 4.8%, rounded up modestly for the franchise step-change — NOT the 15% launch-step, which belongs to the FY26→FY28 ramp and would double-count if paired with the post-launch FY28 base). g_term = 3%. Two-stage warranted P/E ≈ 19.5x (well below the 26x Communication-Services guardrail). Actual clean FY28-forward multiple 24.0x ÷ warranted 19.5x = 1.23 → Full band. Warranted fair value ≈ 19.5x × $9.99 ≈ $195below the $239.57 price. So the stock is ~23% above our disciplined fair value: not cheap, not ceiling-expensive. A Full-band name is not STRONG-BUY-eligible, and there is no valuation discount to reward a buyer here.

Embedded Optionality / Free Upside

Beyond the priced core, three under-valued options ride along (a tilt of ~+3–8, already reflected in the 44 — never a re-rating of a cheap core): (1) a durable GTA VI recurrent-spend / GTA Online tail — the market prices the launch, not necessarily a multi-year live-service annuity; (2) catalog / sequel cadence (Red Dead, BioShock, the next NBA 2K cycles) that the consolidated multiple under-weights; and (3) mobile (Zynga) monetisation upside. Each is un-priced because it is non-core or beyond consensus; none is a base case. Net: the core justifies roughly our ~$195 warranted fair value of the $239.57 price, and this optionality is the reason to keep watching for a pullback — not a reason the stock is cheap today.

Implied-growth read (narrative colour): at $239.57 the market is paying ~24x the first full launch year and effectively underwriting the full FY27–FY29 ramp. Our disciplined anchor sits ~23% below that price — the price embeds slightly more good news than the fundamentals warrant, which is why this is BUY-to-own but Wait-to-enter, not a discount.

Relative cross-checkValueRead
Analyst consensus target$289.86 (high $300 / low $280, 5 recent)~21% upside — narrow spread (high conviction), but a market/launch view above our conservative anchor
Grades consensus45 Buy / 12 Hold / 0 Sell (bullish ~79%)Solid Buy consensus — note it is a lagging, near-consensus signal
Own-history decileUpper-mid 52-wk range (~66% of $187.63–$265.94 band)Upper-mid of range
FMP financial-health ratingD+ (score 1)Expected artefact of GAAP-loss inputs — not a quality read; our Quality lens overrides

Honest divergence: the ~21% consensus upside is a sell-side market/launch view; our warranted anchor is deliberately more conservative and lands ~23% below price. The anchor is supreme for the band (Full); the relative lenses order the name within it. Valuation score 44.

5

Pillar Detail: Underlying Drivers

The dominant external force the stock is tethered to, scored 0–100. A context pillar: it does not change the base signal — it feeds amplification (tailwind ≥65 can lift BUY→STRONG BUY; headwind ≤35 can push SELL→STRONG SELL).
Primary Driver
Consumer interactive-entertainment spend + the GTA VI release catalyst
72
Tailwind (eligible, but STRONG-BUY blocked by the full valuation)

Primary driver: discretionary consumer spend on interactive entertainment, dominated for TTWO by the Grand Theft Auto VI release — the single biggest franchise launch in gaming, dated 19 November 2026 (reconfirmed on the FY26 earnings call, 21 May 2026; underpins the FY27 $8.0–$8.2B net-bookings guide). Secondary: live-service / recurrent-consumer-spend engagement (GTA Online, NBA 2K, mobile).

HorizonAssessmentScore
Historical (12–24m)Consumer gaming spend resilient; TTWO shares +71% over 3yr on the pre-launch re-rate. Bookings base steady.75
Current statePre-order tracking cited as "robust" (B. Riley, 10 Jul); consumer discretionary broadly firm. The catalyst is dated and confirmed, not speculative. But it has NOT yet occurred — execution/timing risk is live.72
Forward (6–12m)Nov-2026 launch is the inflection; consensus underwrites the FY27–FY29 bookings ramp. Principal forward risk is a slip (a prior GTA VI delay already happened) or a launch that undershoots the guide.70

Catalyst-timing risk

GTA VI has slipped before. A further delay past Nov-2026, or a launch that fails to convert pre-order buzz into the guided $8.0–$8.2B, would puncture the pre-launch re-rating — this is the live risk that keeps the driver a Tailwind (72) rather than a Strong Tailwind, and it feeds the §11 Bear directly.

Amplification role: at 72 the driver is a Tailwind and, with the sector economy also a Tailwind, it would ordinarily be eligible to lift the base BUY → STRONG BUY. But STRONG-BUY amplification is blocked because the name sits in the Valuation Anchor's Full band (ratio ≥ 1.20) — you do not back the truck up on a richly-priced name, however strong the driver. So Medium/Long stay a plain BUY, and Short is separately capped at HOLD (§12). The driver does not change the base signal or the fundamental pillar scores.

6

Pillar Detail: Economic Alignment

How the current economic climate sits relative to this stock, read from the latest Macro-Economic report. Classifies the macro pressure (Tailwind / Neutral / Headwind) — the second amplification input — and frames a long entry as Trend-Following or Contrarian with a 0–100 conviction.
Stance · Pressure
Trend-Following · Tailwind
76
conviction

GICS Communication Services → XLC. The latest macro report (2026-07-14) scores XLC Outperform across all three horizons (Short O / Med O / Long O) — real-money inflow into the sector, a Tailwind. TTWO trend-follows this: buying it aligns with where the macro map says capital is rotating. Conviction 76 reflects the O/O/O consistency. The pressure is a symmetric Tailwind for the amplification test — which is present but moot here because the Full valuation blocks STRONG-BUY.

Source: sector-map · Macro report 2026-07-14

7

Pillar Detail: Entry/Exit Timing

The risk-reward framework, relative strength vs SPY and the sector ETF, the macro overlay, news-derived sentiment, and the catalyst cluster.
Entry/Exit Timing — Pillar Score
Improving — higher-timeframe uptrend above the 200-DMA; near-term consolidation, no clean entry trigger
58
conf 62%

The higher timeframes are constructive (monthly/weekly/daily uptrend, price above the 200-DMA — which carries ~80% of the trend weight) but the near-term tape has rolled over intraday and there is no volume-confirmed entry trigger. TTWO sits in the upper-middle of its 52-week range, ~66% of the $187.63–$265.94 band (~10% below the high) — extended after a strong run, a poor location for a fresh entry even as the trend is up.

TimeframeTrendRSIMACDKey S/RBreakout
MonthlyUptrend ↑57+, hist fadingS 195 / R 265Resistance breakout
WeeklyUptrend ↑55+, risingS 227 / R 245Resistance breakout
DailyStrong uptrend ↑54−, hist fallingS 231 / R 246Above 50/200-DMA
HourlyStrong downtrend ↓43S 236 / R 246Support breakdown
15-minStrong downtrend ↓37S 238 / R 243Support breakdown

Confluence: higher-timeframe structure is up (MTF trend ≈ 66), but the daily MACD histogram is negative (−1.46) and intraday is breaking down — a consolidation/pullback within a larger uptrend. Volume is light (0.5–0.55x), so neither the breakout nor the breakdown is confirmed. Relative strength: +20% 30-day / +28% 90-day — a clear leader vs the S&P and XLC, but that leadership sits at range highs.

Risk-reward & short-cap read

The trend earns an Improving pillar (58), but for a fresh short-term entry the location is unfavourable: price is extended near resistance ($246–$266), the reachable support/stop is ~$231 (50-DMA) then ~$216, and there is no volume-confirmed reclaim or tested-bounce trigger. Neither the Technical nor the Catalyst entry group is met (§12) — so the short-horizon BUY is capped to HOLD ("buy on confirmation"). The poor entry location is captured in the risk-reward sub-signal and the Wait conviction ladder, not by crushing the trend pillar.

8

Economic Event Risk

High-impact macro releases in the next 14 days that could swing this stock, plus the last 7 days of surprises.

Upcoming events (next 30 days)

DateEventImpactForecastPreviousRelevant?Why
2026-08-07TTWO Q1 FY27 earningsHighFirst bookings print into the launch✅ YesCompany-specific catalyst; >14d out so not this run's scheduler / gate
2026-11-19GTA VI launchVery High$8.0–$8.2B FY27 bookings hinge on it✅ YesThe dominant driver event; beyond the 14-day window
2026-07-29FOMC rate decisionMediumHold expected⚠️ LowComm-Services is low macro-sensitivity; not a scheduling trigger

Recent surprises (last 7 days)

DateEventActualForecastSurpriseImpact
2026-07-16US Retail Sales MoM (Jun)0.5%0.5%InlineNeutral — discretionary spend steady, supports the consumer driver
2026-07-15Core PPI YoY (Jun)4.7%5.2%Below (cooler)Mildly risk-on for growth multiples

TTWO has low macro-sensitivity (Communication Services). The only high-impact dated events are company-specific — Q1 FY27 earnings (2026-08-07) and the GTA VI launch (2026-11-19) — both beyond the 14-day scheduling window this run. No macro release is a scheduling trigger for a low-sensitivity name.

9

Multi-Timeframe Technical Analysis

Trend, RSI and breakout status across monthly / weekly / daily / hourly / 15-minute, with a confluence verdict.
TimeframeTrendDirectionRSIMACDKey S/RBreakoutVol
MonthlyUptrendBullish57+, fadingS 195 / R 265Resistance breakout0.51x
WeeklyUptrendBullish55+, risingS 227 / R 245Resistance breakout0.55x
DailyStrong uptrendBullish54−, fallingS 231 / R 246Above 50/200-DMA0.54x
HourlyStrong downtrendBearish43S 236 / R 246Support breakdown
15-minStrong downtrendBearish37S 238 / R 243Support breakdown
Confluence: Mostly Bullish (higher-TF) / near-term consolidation · MTF Score 66

Monthly, weekly and daily trends are up and price holds above the 200-DMA, but the daily MACD histogram is negative and the intraday timeframes have broken down — a pullback/consolidation within a larger uptrend. Light volume means no confirmation either way. The reclaim to watch for a technical entry is a daily close back above the recent swing highs ($246–$251) on >1.5x volume; the buy-the-dip level is the 50-DMA zone ~$231.

10

Price Chart (6-Month Daily)

A 6-month daily close line with SMA50 and key support/resistance — the visual companion to the MTF table.

TTWO daily — consolidating near range highs after a strong pre-launch run; 50-DMA ~$232 is the pullback-entry zone, $266 the resistance cap, $290 the consensus target (a market view above our ~$195 warranted fair value).

11

Scenario Summary

Bull / Base / Bear 12-month price paths with triggers and probability weights.

Bull $320 (25%)

GTA VI ships on time on 19 Nov 2026 and converts the "robust" pre-order buzz into a launch that meets or beats the $8.0–$8.2B FY27 bookings guide, with a durable GTA Online recurrent-spend tail. FY28 EPS trends toward the high end (~$12+); the market pays ~26–28x the first full-year number and estimates are revised up post-launch. Consensus high target $300 is exceeded. (A market/launch outcome above our disciplined ~$195 warranted fair value.)

Base $270 (55%)

GTA VI launches on schedule and lands roughly in line with the guide — a blockbuster, but the outcome the market has largely underwritten. The stock grinds toward the ~$290 consensus over 6–12 months as the launch de-risks. This is the market's fair-value view; our own disciplined anchor (~$195) is more conservative, which is exactly why the pillar reads Full and the entry ladder reads Wait — you are paid for launch de-risking, not a discount.

Bear $175 (20%)

TTWO-specific downside: a GTA VI slip past Nov-2026 (it has slipped before), OR a launch that undershoots the $8.0–$8.2B guide, OR live-service engagement continuing to leak to Fortnite/Roblox so the recurrent tail disappoints. Any of these punctures the pre-launch re-rating; the name mean-reverts toward the low-$180s 52-wk support and toward our ~$195 warranted fair. This is idiosyncratic — TTWO is NOT in the AI-concentration cohort, so no index-level de-rating tail is inherited.

Probability-weighted fair value

0.25×$320 + 0.55×$270 + 0.20×$175 = ~$263 — roughly +10% from $239.57 on the market/launch view. Note the two anchors deliberately diverge: the scenario-weighted market view (~$263) sits above our conservative warranted fair (~$195). The skew matters — the base case is largely priced and the bear is a real ~27% drawdown — which is why the name is BUY-to-own but the entry ladder says Wait for a pullback rather than chase at range highs.

12

Entry / Exit Rules

Three independent entry paths (Fundamental · Technical · Catalyst) and three exit triggers (Stop-Loss · Thesis · Profit-Target). Any one entry path is a valid entry — the more that agree, the larger the position the conviction ladder suggests. Exits are graded by severity, not count.

How to read this — the Conviction Ladder

The three entry groups are alternative paths to a buy, not a checklist. A group counts only when all its sub-conditions hold. How many groups are satisfied sets the suggested size — it does not gate whether you may enter: 1 group = Half-Size (a valid starter/scale-in), 2 = Full-Size, 3 = Over-Size (highest conviction); 0 = Wait (no path open yet). A strong overall signal can still read Wait here when the stock is well above its entry zones — that flags "good business, no entry edge right now," not a contradiction. Exits are graded by severity of what is live, not by a count: a hard stop is an Exit on its own.
Entry conviction: Wait0 of 3 groups met — no entry path open

Fundamental — not MET

Price is ~23% above warranted fair value — the cheapness path is not open.
⛔ Price $239.57 < warranted fair value ~$195 (FY28 EPS $9.99 × 19.5x) — price is ABOVE fair value
✅ No earnings within 7 days (earnings 2026-08-07)
✅ Underlying-Driver score ≥ 50 (72)

Technical — not MET

No volume-confirmed reclaim and not at support — intraday breaking down.
⛔ Daily close above swing-high $246–$251 on >1.5x volume (currently 0.54x) OR a tested bounce off the $231 (50-DMA) / $216 support with a higher low
✅ RSI 35–65 (daily 54)
⛔ MACD histogram positive ≥ 2 days OR turning up off support (daily hist −1.46, falling)

Catalyst — not MET

GTA VI (19 Nov) is ~4 months out — a distant catalyst, not a met post-event trigger.
· Post-earnings/launch move within 24h > +5% (no such event has occurred; next earnings 2026-08-07, launch 2026-11-19)
· Guidance raised or maintained
⛔ Volume > 2x 20-day average

Forecast: Fundamental group: UNLIKELY without a ~20%+ pullback (to ~$195 warranted fair) or a further estimate step-up. Technical group: MODERATE on a ~1–3 week horizon — either a >1.5x-volume reclaim of $246–$251 (needs a volume catalyst; light 0.5x tape today) or a tested bounce off the $231 50-DMA on a pullback; the 50-DMA is only ~3% below and rising, so a dip-buy trigger is the more reachable path and would open a Half-Size entry. Catalyst group: DATE-DEPENDENT — first live check is the 2026-08-07 Q1 print (a >+5% move on a raised/maintained bookings guide would arm it), then the 19-Nov launch. Until one of these fires, the short horizon stays capped at HOLD despite the BUY-rated medium/long thesis.

Exit action: Holdno exit trigger is live — hold the position

Stop-Loss — not LIVE

⛔ Two daily closes below $216 (below the weekly $216/$206 support shelf)

Thesis Invalidation — not LIVE

⛔ GTA VI is delayed past Nov-2026 (a confirmed slip)
⛔ OR the FY27 net-bookings guide ($8.0–$8.2B) is cut, OR live-service/recurrent engagement decelerates below peers (share loss to Fortnite/Roblox)

Profit-Target — not LIVE

⛔ Price into the $290 consensus / $300 high target with RSI > 70 and no upward estimate revision to justify it

Forecast: Stop-loss ($216): UNLIKELY in the next 4–6 weeks — 10% below price and below the 50-DMA; would need an earnings/launch shock. Thesis-invalidation: the live watch item is any GTA VI delay headline (the framework treats a confirmed slip as a hard exit); nothing flags it today, but it is the dominant risk and re-checked each refresh. Profit-target: would require a ~21% move to $290 into overbought — not near-term.

Imagine you act at the current price of $239.57 · as of 16 Jul 2026

What if you bought now?

BUY-rated to own on quality + trend + sector tailwind — but there is no valuation discount here: price is ~23% above our warranted fair (~$195), so the Conviction Ladder says Wait. Accumulate on a pullback toward $231/$216, or on a confirmed post-print/launch trigger — don't chase at range highs.

What if you sold now?

Not a sell — the franchise is high-quality and the sector regime is a tailwind. Existing holders sit through the launch de-risking; the exit rules watch for a GTA VI delay (thesis break) or a break below $216 (stop).
13

Position Sizing Context

Illustrative portfolio math (not advice) translating conviction into an allocation given risk-per-share and volatility.

Position sizing not computed — specify your portfolio allocation and role for sizing guidance.

14

Calibration Snapshot

Machine-readable snapshot of every score, level and signal, saved alongside the HTML so the next run can compute deltas.
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  "ticker": "TTWO",
  "exchange": "NASDAQ",
  "exchange_ticker": "NASDAQ:TTWO",
  "isin": "US8740541094",
  "api_ticker": "TTWO",
  "finder_ticker": "TTWO",
  "finder_exchange": "\ud83c\uddfa\ud83c\uddf8 NASDAQ",
  "section": "Communication Services",
  "country_table": "US",
  "date": "2026-07-16",
  "version": "v6",
  "analysis_status": "starting",
  "user_context": {
    "horizon": null,
    "allocation_pct": null,
    "portfolio_role": null
  },
  "user_horizon": null,
  "user_allocation_pct": null,
  "portfolio_role": null,
  "company": "Take-Two Interactive Software, Inc.",
  "currency": "USD",
  "price_at_rating": 239.57,
  "lifecycle_stage": "growth",
  "sector": "Communication Services \u2014 Interactive Entertainment (Video Games)",
  "signal_short": "HOLD",
  "signal_medium": "BUY",
  "signal_long": "BUY",
  "primary_signal": "BUY",
  "composite_short": 52,
  "composite_medium": 60,
  "composite_long": 63,
  "quality_score": 72,
  "quality_confidence": 72,
  "quality_detail": {
    "industry_benchmark_name": "Franchise IP strength + net-bookings growth trajectory",
    "industry_benchmark_value": "FY27 bookings guide $8.0-8.2B (~+20% off ~$6.7B base)",
    "industry_benchmark_score": 78,
    "moat_score": 68,
    "gross_margin_ttm": 0.5723,
    "net_margin_ttm": -0.0448,
    "ebitda_margin_ttm": 0.1779,
    "operating_margin_ttm": -0.0088,
    "revenue_ttm_usd": 6656400000,
    "net_bookings_guide_fy27_usd": "8.0-8.2B",
    "share_count_growth_2yr_pct": 7.5,
    "note": "GAAP-unprofitable by lifecycle (Zynga acquired-intangible amortisation + dev-cost deferrals), NOT distress. Scored on the growth/entertainment lens: bookings + IP moat, not mature-company P/E."
  },
  "valuation_score": 44,
  "valuation_confidence": 78,
  "val_band": "full",
  "val_multiple_basis": "clean forward first-full-year (FY28 post-GTA-VI) P/E \u2014 trailing GAAP P/E meaningless (net loss); FY27 is a stub year and not used as the anchor",
  "actual_multiple": 24.0,
  "warranted_multiple": 19.5,
  "warranted_ratio": 1.23,
  "discount_rate_r": 9.0,
  "risk_free_10y": 4.5,
  "g_near": 6,
  "g_term": 3,
  "sector_guardrail_pe": 26,
  "clean_pe": 24.0,
  "clean_peg": "~1.2 forward (FY28 P/E 24x vs disciplined ~6% post-launch g; trailing PEG meaningless)",
  "valuation_detail": {
    "reported_pe_ttm": -148.3,
    "forward_pe_fy27_stub": 35.7,
    "forward_pe_fy28_anchor": 24.0,
    "forward_pe_fy29": 22.2,
    "ev_sales_ttm": 6.9,
    "fcf_yield": 1.0,
    "warranted_fair_value_usd": 195,
    "price_vs_fair_pct_above": 23,
    "historical_valuation_decile": 9,
    "boundary_note": "FULL (not Expensive): clean first-full-year (FY28) forward P/E 24.0x ($239.57 / consensus FY28 EPS $9.99) is BELOW the 26x Communication-Services guardrail line (guardrail arm does not fire) AND 1.23x the ~19.5x warranted multiple (two-stage DCF; r 9.0% = 4.5% 10-Y + 4.5% ERP + 0% add-on for BQ>=65; disciplined post-launch g_near 6% = 0.75x the ~6.4% FY28->FY31 EPS CAGR, NOT the 15% FY26->FY28 launch step, which would double-count; g_term 3%). Warranted fair value ~$195, BELOW the $239.57 price => ~23% above fair. Full band (1.20-1.40) => no Gate 3, but STRONG-BUY amplification blocked. FY27's 35.7x is a stub-year trough-earnings artefact (only ~4mo of GTA VI) and is NOT the anchor. GTA VI success is treated as market/scenario upside + \u00a74 embedded optionality (tilt already in the 44), NOT a re-rating of a cheap core."
  },
  "embedded_optionality_note": "\u00a74 Embedded Optionality (a tilt, +3-8, baked into the 44): (1) GTA VI recurrent-spend / GTA Online tail beyond the base bookings guide \u2014 the market prices the launch, not necessarily a multi-year live-service annuity; (2) catalog/sequel cadence (Red Dead, Bioshock, next NBA 2K cycles) the consolidated multiple under-weights; (3) mobile (Zynga) monetisation upside. Real but not a base case; it cushions downside and is the reason to keep watching, NOT a reason the stock is cheap (it is ~23% above warranted fair).",
  "nonop_pct_of_net_income": "n/a \u2014 GAAP net LOSS; TTM net loss driven by acquired-intangible amortisation + a ~$3.6B FY25-Q4 one-off impairment/other in the 8Q window",
  "earnings_quality_note": "TTWO is GAAP-unprofitable, NOT via non-operating mark-to-market gains but via heavy amortisation of Zynga acquired intangibles + game-dev cost deferrals (a lifecycle drag, the OPPOSITE of the mega-cap AI inflation trap). Scoring on trailing GAAP P/E is meaningless; the anchor uses forward/normalised (first-full-year FY28) earnings, stated explicitly. clean_pe here = the forward FY28 P/E, not a trailing normalised number.",
  "timing_score": 58,
  "timing_confidence": 62,
  "timing_detail": {
    "mtf_confluence_score": 66,
    "mtf_tool_confluence": "bullish (higher-TF) / intraday breakdown",
    "trend_monthly": "uptrend",
    "trend_weekly": "uptrend",
    "trend_daily": "strong_uptrend",
    "trend_hourly": "strong_downtrend",
    "trend_15min": "strong_downtrend",
    "risk_reward_score": 50,
    "relative_strength_vs_spy": "+20% 30d / +28% 90d \u2014 clear leader, but at range highs",
    "relative_strength_vs_sector": "outperforming XLC (sector O/O/O)",
    "rsi_daily": 54.5,
    "macd_daily_hist": -1.46,
    "sma50_daily": 231.71,
    "sma200_daily": 230.82,
    "atr_daily": 8.3,
    "range_position_52wk_pct": 66,
    "catalyst_clustering_score": 65,
    "dynamic_macro_weight": 0.1,
    "macro_sensitivity": "Low (Communication Services / interactive entertainment)",
    "note": "Pillar 58 (Improving) reflects the higher-TF uptrend (~80% of trend weight); the poor entry LOCATION is captured in risk_reward (50), the short cap, and the Wait ladder \u2014 not double-counted by crushing the trend pillar."
  },
  "driver_score": 72,
  "driver_label": "Tailwind",
  "driver_confidence": 66,
  "driver_detail": {
    "primary_driver": "Consumer interactive-entertainment spend + the GTA VI release catalyst (19 Nov 2026)",
    "secondary_driver": "Live-service / recurrent-consumer-spend engagement (GTA Online, NBA 2K, mobile)",
    "historical": 75,
    "current": 72,
    "forward": 70,
    "amplification_eligible": true,
    "amplification_applied": false,
    "amplification_blocked_reason": "STRONG-BUY amplification blocked because the name sits in the Valuation Anchor's Full band (ratio 1.23 >= 1.20). Driver Tailwind + econ Tailwind would otherwise lift the base BUY to STRONG BUY on Med/Long; the full valuation caps it at plain BUY. (Short is separately capped at HOLD by the technical-confirmation cap.)",
    "catalyst_timing_risk": "GTA VI has slipped before; a further delay past Nov-2026 or a launch undershooting the $8.0-8.2B guide is the dominant live risk \u2014 keeps the driver a Tailwind (72) not Strong Tailwind, and drives the \u00a711 Bear.",
    "thesis_invalidation_floor": "A confirmed GTA VI slip past Nov-2026, a cut to the FY27 net-bookings guide, or sustained live-service engagement loss to Fortnite/Roblox."
  },
  "economic_alignment_stance": "Trend-Following",
  "economic_alignment_conviction": 76,
  "economic_alignment_pressure": "Tailwind",
  "economic_alignment_pressure_short": "Tailwind",
  "economic_alignment_pressure_medium": "Tailwind",
  "economic_alignment_pressure_long": "Tailwind",
  "economic_alignment_source": "sector-map",
  "economic_alignment_confidence": 70,
  "macro_report_date": "2026-07-14",
  "macro_sector_signal": "XLC s:O m:O l:O",
  "competitive_share_trajectory": "stable-to-rising into the GTA VI launch on premium-console IP; but engagement/time-and-spend share leaking to Fortnite/Roblox live-service",
  "competitive_threat_level": "moderate",
  "moat_score": 68,
  "overall_confidence": 62,
  "fair_value_est": 195.0,
  "stop_loss": 216.0,
  "support_levels": [
    231.71,
    227.25,
    216.34,
    206.0,
    187.63
  ],
  "resistance_levels": [
    245.07,
    251.34,
    260.04,
    265.94,
    289.86
  ],
  "target_price": 289.86,
  "analyst_consensus_target": 289.86,
  "analyst_target_high": 300,
  "analyst_target_low": 280,
  "analyst_target_median": 289,
  "analyst_target_upside_pct": 21.0,
  "analyst_grades_consensus": "Buy",
  "analyst_bullish_pct": 78.9,
  "analyst_coverage_count": 57,
  "recent_upgrades_30d": 0,
  "recent_downgrades_30d": 0,
  "fmp_rating": "D+",
  "fmp_overall_score": 1,
  "hard_gate_state": "caution",
  "gates_triggered": [],
  "gates_caution": [
    "Gate 3 \u2014 Valuation Ceiling: NOT triggered but full. FY28 forward P/E 24.0x is below the 26x guardrail and 1.23x its ~19.5x warranted multiple (Full band, ratio < 1.40). No cap on the signal, but STRONG-BUY amplification is blocked for a Full-band name.",
    "Gate 4 \u2014 Dilution: share count +7.5% over 2yr (~3.7%/yr, Zynga stock + SBC) is BELOW the 5%/yr arm, so not triggered; flagged given the SBC load and the large (but transparent, lifecycle) GAAP-bookings gap."
  ],
  "do_not_buy_triggers": [],
  "dnb_trigger_2_check": "NOT fired. Arm (a) deep-expensive needs >= 2.0x warranted or >= 1.5x guardrail \u2014 actual is 1.23x warranted, below both. Arm (b) needs a live de-rating catalyst \u2014 TTWO is NOT in the AI-concentration cohort (interactive entertainment, not levered to AI capex/monetisation; FMP's 'Technology' tag is ignored), and no Structural Business Model Threat is live. No DNB.",
  "entry_groups_met": 0,
  "entry_conviction": "Wait",
  "exit_groups_live": 0,
  "exit_action": "Hold",
  "short_entry_confirmed": false,
  "short_cap_reason": "Short-horizon technical-confirmation cap: neither the Technical group (no >1.5x-volume reclaim of $246-251 and not at support; daily MACD hist -1.46 falling; intraday breaking down) NOR the Catalyst group (GTA VI 19 Nov is ~4mo out \u2014 not a met post-event trigger; no +5% post-earnings move) is met. A short BUY is not permitted on the Fundamental path alone (and here even Fundamental is unmet, price above fair value). The Short base signal is BUY (like Med/Long) but is capped to HOLD \u2014 'buy on confirmation.' This cap is the ACTUAL binding constraint on the short horizon (Med/Long are unaffected and stay BUY).",
  "scenario_bull_target": 320,
  "scenario_base_target": 270,
  "scenario_bear_target": 175,
  "scenario_probs": {
    "bull": 25,
    "base": 55,
    "bear": 20
  },
  "scenario_prob_weighted_fv": 263,
  "scenario_note": "Scenario targets are the MARKET/launch view and legitimately sit above our disciplined warranted fair value (~$195); they are not reconciled to it \u2014 the divergence (conservative anchor vs sell-side/market) is the honest reason the pillar is Full and the entry ladder is Wait.",
  "next_update_date": "2026-07-30",
  "next_check_date": "2026-07-30",
  "next_update_basis": "default +14d (no impactful event inside the 14-day window: Q1 FY27 earnings 2026-08-07 and GTA VI launch 2026-11-19 are both beyond it; Communication Services is low macro-sensitivity so the 29 Jul FOMC is not a scheduling trigger). The 14-day refresh runs first and re-schedules once earnings enters the window.",
  "last_updated_human": "Jul 16, 2026",
  "new_add_delta": "NEW watchlist add (B4b bench promotion). analysis_status 'starting'; finder_ticker TTWO, finder_exchange '\ud83c\uddfa\ud83c\uddf8 NASDAQ'. No prior calibration \u2014 no signal delta."
}
15

Data Sources & Methodology

Audit trail of every data source: fully available (✓), fallback (⚠), or failed (✗), plus provenance-based confidence haircuts.
Data Source Status
get_company_profile / get_stock_snapshot price $239.57, mkt-cap $44.5B, ISIN US8740541094, beta 0.96, 52wk $187.63–$265.94
get_income_statement (8Q) TTM revenue ~$6.66B; GAAP net loss (Zynga intangible amortisation + dev-cost deferrals); FY25 Q4 held a ~$3.6B one-off impairment/other — excluded from the normalised read
get_analyst_estimates FY27 EPS $6.72 / FY28 $9.99 / FY29 $10.80 — the post-GTA-VI normalised earnings used for the forward-P/E anchor (FY28 = first full launch year)
get_price_target_consensus / _summary consensus $289.86 (high $300 / low $280), 5 recent — ~21% upside (a market/launch view above our warranted anchor)
get_stock_grades / get_grades_consensus 45 Buy / 12 Hold / 0 Sell; recent actions all maintains
get_ratings_snapshot FMP D+ — a GAAP-loss artefact, overridden by the growth-lens Quality read
get_multi_timeframe_analysis higher-TF uptrend, intraday breakdown, light volume
get_earnings_calendar (MCP) returned empty; earnings date 2026-08-07 confirmed via company press release (web)
Web: GTA VI launch date, pre-orders, Q1 date GTA VI 19 Nov 2026 (reconfirmed FY26 call 21 May 2026); FY27 net-bookings guide $8.0–$8.2B; Q1 FY27 earnings 2026-08-07
Macro state 2026-07-14 XLC O/O/O; 10-Y 4.5% used for r
Impact on scores: High coverage. The only PARTIAL was the earnings-calendar MCP (empty), backfilled from the company's dated press release — no confidence haircut. Valuation is anchored on forward (not trailing GAAP) earnings by design; that is a lens choice, not a data gap.
DISCLAIMER: This is a quantitative framework for educational purposes only. It is not financial advice. Always do your own research and consult a licensed financial advisor before making investment decisions.