How Take-Two Interactive Gets to the Next Level

Updated

Take-Two Interactive had a much better 2013 than its rival video game publishers. But you wouldn't know that by comparing the companies' stocks. Despite massively outperforming profit and sales expectations -- and releasing the year's biggest game in Grand Theft Auto V -- Take-Two is trailing industry giants Electronic Arts and Activision Blizzard . So what does the company need to do to finally win some respect from Wall Street?

In the video below, Fool contributor Demitrios Kalogeropoulos tries to answer that question, arguing that Take-Two could use another major franchise in its portfolio, if just to smooth out the wild volatility in its business that is giving shareholders whiplash.

TTWO Revenue (Quarterly YoY Growth) Chart
TTWO Revenue (Quarterly YoY Growth) Chart


TTWO Revenue (Quarterly YoY Growth) data by YCharts.

The good news is that the company is using its latest quarterly sales upswing to bulk up on resources, pointing to the potential for some big new property launches on the way. That's why investors should watch closely for updates on the company's game pipeline for 2014 and beyond, which Take-Two should announce in the coming months.

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The article How Take-Two Interactive Gets to the Next Level originally appeared on Fool.com.

Demitrios Kalogeropoulos owns shares of Activision Blizzard. The Motley Fool recommends Activision Blizzard and Take-Two Interactive. The Motley Fool owns shares of Activision Blizzard. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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