Stock has lost 8.6% this year
Take-Two Interactive (TTWO) stock had been on a roll for the last few years. The stock is up 370% in the last five years and 156% in the last three years. The stock rose around 40% in 2016 and 130% in 2017. Last year, however, the stock lost 14% and shares are down 8.6% in 2019 as well. The blockbuster performance of Fortnite has severely impacted the stock performance of Take-Two, Electronic Arts (EA), and Activision Blizzard (ATVI). Fortnite was the most successful game in 2018 and generated $2.5 billion in sales.
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Since the start of 2018, Take-Two has lost 17%, while EA and ATVI have fallen by 10% and 28%, respectively.
Does Take-Two stock have upside potential?
Of the 20 analysts covering Take-Two, 16 have recommended “buys,” three have recommended “holds,” and one has recommended a “sell” on its stock. Analysts have a 12-month average price target of $122.20 on the stock, which indicates a potential upside of 30% from its current price of $94.11.
What do the technical indicators say?
On April 11, TTWO closed the trading day at $94.11. Based on that price, the stock was trading as follows:
- 5.2% below its 100-day moving average of $99.22
- 0.8% above its 50-day moving average of $93.34
- 1.5% below its 20-day moving average of $95.52
MACD and RSI
TTWO’s 14-day MACD (moving average convergence divergence) is -0.35. A stock’s MACD marks the difference between its short-term and long-term moving averages. TTWO’s negative MACD score indicates a downward trading trend.
TTWO has a 14-day RSI (relative strength index) score of 49, which shows that its stock is trading right in between oversold and overbought territory. An RSI score of above 70 indicates that a stock is overbought, while an RSI score of below 30 indicates that a stock is oversold.
Analysts expect TTWO’s revenue to rise by an impressive 48% YoY to $2.95 billion in fiscal 2019 compared to $1.99 billion in 2018.
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