Game On: Take-Two Levels Up on Nasdaq

Take-Two Interactive Software, Inc. (NASDAQ: TTWO) has witnessed notable volatility, marked by a surge following its inclusion in the Nasdaq 100 index on December 18, showcasing the potential benefits of increased visibility and investor interest. This addition, replacing Seagen due to Pfizer’s acquisition, boosted TTWO’s shares by around 4% premarket. Despite a recent dip, TTWO boasts a strong year-to-date performance, up by 52.19%. 

However, fundamental analysis reveals a potential challenge in the upcoming quarterly earnings, with anticipated earnings per share (EPS) at $0.87, reflecting a year-over-year decline of -6.5%. There’s also a downward trend in EPS estimates over the past month, raising caution among investors. 

Technical Analysis:  

TTWO’s current price at $160.20 demonstrates a bearish trend within a rising wedge trading pattern. Despite trading above the 50-SMA (blue line), 100-SMA (orange line), and 200-SMA (red line), the RSI’s sharp decline to 61.26 suggests a potential reversal. 

For short-term trading opportunities, a push lower could target the $156.62 support level. A break below the initial support and the wedge could trigger a run lower and would likely bring the $147.56 and $143.41 support levels into play. 

However, short-term trading opportunities towards the $164.72 resistance level could arise should the price action fail to sustain a push lower. A break above the initial resistance could confirm the bullish momentum, likely bringing the $170.54 resistance level within the bulls’ reach in the short term. 


TTWO’s inclusion in the Nasdaq 100 index has spurred short-term gains, but caution prevails due to a decline in projected earnings and downward EPS estimate revisions. The current technical setup indicates a potential bearish reversal within the rising wedge pattern. Key levels to watch include $156.62 and $164.72, which could steer short-term trading sentiment. 

Monitoring TTWO’s performance amidst these technical patterns and fundamental indicators will be crucial for traders seeking opportunities, with the $143.41 support level and $170.54 resistance level serving as significant thresholds in determining the stock’s future trajectory. 

Sources: TradingView, Trading Economics, Reuters, Take-Two Interactive, Dow Jones Newswire, Datatec, IOL, MT Newswire. 

Piece written by Mfanafuthi Mhlongo, Trive Financial Market Analyst 

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