• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing

Take-Two Interactive Has 2 Paths to Take

Let's give things a few more days to see if the bulls are truly back in the game.
By BRUCE KAMICH
May 20, 2021 | 09:26 AM EDT
Stocks quotes in this article: TTWO

For his second "Executive Decision" segment of Mad Money Wednesday night, Jim Cramer spoke with Strauss Zelnick, chairman and CEO of game maker Take-Two Interactive Software (TTWO) .

The company just delivered a monster 91-cents-a-share earnings beat.

Zelnick said that interactive entertainment is now the No. 1 entertainment vertical, ahead of all other activities. However, the company is realistic and expects demand to moderate as people begin to leave their homes again.

Take-Two is a highly efficient company, Zelnick added, and the 700 new developers they added last year were needed to meet their goals of delivering 60 new titles in the next few years.

When asked about some of their existing titles, Zelnick said that Grand Theft Auto continues to set new records for online play and NBA2K had another great year as we're still in the early days of eSports.

Finally, Zelnick said that Take-Two is meeting consumers where they are, whether that's buying physical media or downloading games online.

We looked at TTWO last on February 10 and wrote that "Momentum tends to peak before prices do so it is a leading indicator. It is not a precise timing tool but more of a "get ready and watch things closer" tool. TTWO is showing a weakening momentum picture with the risk of a temporary pullback. Stay nimble."

Let's check on things now. In this daily Japanese candlestick chart of TTWO, below, from www.stockcharts.com, we can see that the price of TTWO tumbled lower after our February 10 review. Prices made lows in March and May and this suggests a fresh bottom has been made. Prices have recently rallied and closed above the 50-day moving average line and the 200-day moving average line.

The On-Balance-Volume (OBV) line has been in a decline from February and its trend tells us that sellers of TTWO have been more aggressive. The trend-following Moving Average Convergence Divergence (MACD) oscillator has just turned upwards for a cover shorts buy signal.

In this weekly Japanese candlestick chart of TTWO, below, we see a mixed to bearish picture. Prices are at the underside of the cresting 40-week moving average line. The weekly OBV line has been in a decline since January and the MACD oscillator is testing the zero line but it has begun to narrow. On the plus side we can see some lower shadows near $160 in March and May as traders rejected the lows.

In this daily Point and Figure chart of TTWO, below, we can see that the software is now projecting a potential upside price target in the $213 area. A trade at $187.86 is needed for a fresh upside breakout.

In this first weekly Point and Figure chart of TTWO, below, we can see a bearish downside price target in the $109 area.

In this second weekly Point and Figure chart of TTWO, below, we used close only price data and a traditional even dollar scaling. Here the software gives us a $151 price target. Not as bearish as $109.

Bottom line strategy: The charts and indicators of TTWO can be presented as bullish or as bearish (not an unusual story with technical analysis). The daily charts show improvement but the weekly charts are not out of the woods. Let's give things a few more days to see if the bulls are truly back in the game.

(Take-Two is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells TTWO? Learn more now.)

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Earnings | Investing | Stocks | Technical Analysis | Trading | Software & Services | Gaming | Mad Money | Executive Interview | eSports

More from Investing

The Indexes Cover Up Positive Action, for a Change

James "Rev Shark" DePorre
Jun 6, 2023 4:43 PM EDT

Is a rotation into the lagging names starting to gain traction? Let's see.

Stop Covering Your Eyes: Roku Could Rise Again

Bruce Kamich
Jun 6, 2023 2:30 PM EDT

Is it safe to play ROKU? Let's check the charts.

The Russell Looks Ready to Rumble

Bruce Kamich
Jun 6, 2023 1:48 PM EDT

The charts tell me that the small caps could turn higher soon.

Fed's Relevance Appears to Wane

Peter Tchir
Jun 6, 2023 1:00 PM EDT

I may be guilty of wishful thinking, but it looks like the market is finally moving beyond the Federal Reserve.

Walmart's Charts Have a Lot in Store

Bruce Kamich
Jun 6, 2023 12:38 PM EDT

Let's check on new price targets for WMT and how aggressive traders could play the stock.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 07:19 PM EDT CHRIS VERSACE

    AAP Podcast: This Company Is Not Going 'Solo'

    Listen in as I talk with the very diversified Solo...
  • 01:51 PM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Adjusting Your Trading Approach to Shifting Market...
  • 06:54 PM EDT CHRIS VERSACE

    AAP Podcast: A Tongue -- and a Market -- Twister: 'Get a Debt Deal Done'

    Listen in as the Action Alerts PLUS Podcast tackle...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login