earning: Take-Two Interactive SoftwareTake-Two Interactive Software, Inc. is an American video game holding company. Investors are hoping that the elevated player engagement trends that occurred during the pandemic will carry into 2021. when we look at a forward price-to-earnings (P/E) ratio of 37, the shares might be a bit overvalued. From a technical standpoint, the stock has been on a nice uptrend, creating a base rally, base rally formation. we currently broke out of a nice inverted head and shoulder to bring us over the 200 dollar mark. Now that we are at a nice bull flag---- also a nice double bottom pattern, can earnings break above 212-216. i am expecting a price tgt of 220 post earning but ofc earning can go 50/50. we may expect a slowdown in growth based on a decrease in recurrent consumer spending on grand theft auto,2k21, and many others and so many others. if we can overcome that, that should provide the stock with more uptrend momentum. also, one key thing to watch out for is their profit margin. Ultimately, investors love to see growth in profits, especially when that growth is coming from a balance of top-and bottom-line gains. Take-Two reported a net profit increase of 21% in fiscal 2020. The company grew profits by 88% in the fiscal first quarter of 2021 and 37% in fiscal Q2.
FYI::::::::Take-Two has benefited enormously from the shift to digital distribution of games, including recurrent consumer spending. Since digitally delivered content carries higher margins, the growth in recurrent consumer spending should bolster the company's profitability over the long haul. THIS IS NOT FINANCIAL ADVICE- THIS IS USING THE FUNDAMENTALS AND A BIT TECHNICAL ANALYSIS TO GO INTO EARNING--PLEASE DO REMEMBER THAT EARNINGS ARE 50/50
