Q1 2025 was the best earnings reaction since 2015 for Take-Two Interactive Software $TTWO. We talked about it in February.
It reported mixed quarterly results, but rallied 14% with a reaction score of 9.14. The reaction was super bullish.
This was also the stock's 4th consecutive positive earnings reaction. That's one of the highest Beat Streaks in the S&P 500.
Take-Two is one of the largest video game developers in the world. They're known for legendary games such as Grand Theft Auto, Red Dead, and NBA 2K, among others.
In the report, the company reported stronger-than-expected sales of NBA 2K. They sold over 7M units, increasing daily active users by nearly 20%.
Additionally, the market is enthusiastic about the products in their pipeline. In particular, they're expected to launch a new version of Grand Theft Auto in the fall this year.
This has been one of the most successful video game franchises ever. The market is front-running the potential of the latest edition.
It's not just the fundamentals that have us interested in the stock.
The price has been coiling below the prior cycle's peak, potentially building up energy for a fresh leg higher to new all-time highs.
Relative to the S&P 500, the stock is printing fresh multi-year highs as it has bucked the recent selling pressure in the broader market.
If and when the buyers take control of this stock and resolve this multi-year basing accumulation pattern, we want to be involved.
Here's how we're trading TTWO 👇
We're buying TTWO on strength above 215, with a target of 292. If and when the buy signal is triggered, we'll hold the stock for 3-6 months.
On the other hand, we don't want to own the stock below 215.
