John Ballard, The Motley Fool
5 min read
In This Article:
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Buzz is building for the next release in the Grand Theft Auto series -- one of the bestselling video game franchises of all time.
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Wall Street analysts project Take-Two's adjusted revenue to hit $9 billion in two years.
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The stock's valuation could support more upside for shareholders.
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Shares of Take-Two Interactive (NASDAQ: TTWO) have been trending higher over the past year. The company has reported solid sales from its roster of video game franchises, led by one of the most popular brands in gaming, Grand Theft Auto.
Take-Two stock is gaining attention on Wall Street as the launch date of the next installment in the Grand Theft Auto series emerges on the horizon. Grand Theft Auto V, the current iteration of the series, was released in 2013 and has sold over 215 million copies. The stock doubled within three years of that release and went on to deliver an incredible 1,230% to date.
Should you buy the stock now? While Grand Theft Auto VI is currently slated to release in May 26, 2026, there appears to be tremendous pent-up demand from players. We'll take a look at how much revenue Grand Theft Auto VI (GTA VI) could generate for Take-Two over the next few years and where the stock could trade by 2028.
The GTA series has seen several releases over the last few decades. It is one of the best-selling franchises of all time, selling a cumulative 450 million copies. Each new release has expanded the popularity of the series.
With the current version of the game selling significantly more copies than previous releases, the next release will be selling into a huge built-in fan base. The viewership numbers of the second trailer released for GTA VI were a record 475 million within the first 24 hours, fueling high expectations for sales.
The 2013 launch of GTA V was a milestone event for Take-Two's financials. The company's revenue nearly doubled from $1.2 billion to $2.3 billion in fiscal 2014. Considering the game's growth in popularity, the next release could generate even higher sales.
Wall Street's consensus estimate has Take-Two's non-GAAP revenue, or bookings, hitting $9 billion by fiscal 2027 (which ends in March), up from $5.6 billion for the recent fiscal year.
There's always a risk that a video game's release could have lower-than-expected sales. But new releases for existing franchises are generally safe bets, especially a franchise of this magnitude. Management credited strong player interest in the current GTA game for contributing to the 17% year-over-year increase in bookings last quarter.
