5 Best Gaming Stocks To Buy Now

3. Take-Two Interactive Software, Inc. (NASDAQ:TTWO)

Number of Hedge Fund Holders: 66

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is one of the best gaming stocks to invest in. It is a New York-based company that develops, publishes, and markets interactive entertainment solutions for consumers worldwide. Some of its popular gaming franchises include Grand Theft Auto, Max Payne, Midnight Club, and Red Dead Redemption. Take-Two Interactive Software, Inc. (NASDAQ:TTWO) recently acquired Zynga, an American developer providing social video game services. 

On October 5, Goldman Sachs analyst Eric Sheridan upgraded Take-Two Interactive Software, Inc. (NASDAQ:TTWO) to Buy from Neutral with a price target of $165, up from $131. The gaming industry continues to face short-term fundamental headwinds, but these headwinds are largely priced into the shares, the analyst told investors. The analyst sees some key industry themes and easier comps emerging after 2022, and he is also positive on the gaming industry’s latest moves to elevate the level of mobile gaming exposure and the upcoming “console cycle”.

According to Insider Monkey’s database, 66 hedge funds were long Take-Two Interactive Software, Inc. (NASDAQ:TTWO) at the end of June 2022, compared to 58 funds in the preceding quarter. Andreas Halvorsen’s Viking Global is a significant stakeholder of the company, with nearly 2 million shares worth $245 million. 

Here is what Madison Funds specifically said about Take-Two Interactive Software, Inc. (NASDAQ:TTWO) in its Q2 2022 investor letter:

“Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is a leading publisher of video games. Take-Two has a reputation for the high quality of its games, having published industry favorites such as Grand Theft Auto and NBA2K.

The video game industry itself has shed much of its boom-and-bust patterns to become a steadier, more predictable business with high barriers to entry, established title franchises, and high levels of recurring, in-game revenue streams. The company has been investing heavily to step up the number of new title launches over the next few years, a favorable set-up which we believe is not fully reflected in its stock price.”