Investors should load up on Take-Two Interactive Software Inc (NASDAQ: TTWO) as Trump tariffs and fears of a full-blown trade war continue to wreak havoc on global equities, says Adam Parker.
He’s the founder and chief executive of Trivariate Research.
Trump’s trade policies are broadly expected to push the US economy into a recession before the end of this year, and a slowing economy tends to weigh on discretionary spending.
Still, Trivariate’s Parker believes TTWO has what it takes to weather the macro uncertainty that’s otherwise made US stocks a lot less attractive in 2025.
GTA VI to drive revenue and free cash flow growth at TTWO
Adam Parker is bullish on Take-Two stock primarily because the video game publisher is broadly expected to release the much-anticipated Grand Theft Auto VI in 2025.
Historically, GTA has been a title that accelerates revenue growth and free cash flow for TTWO, not just for a few quarters, but for several years instead.
“What eventually is coming is the next Grand Theft Auto, and what comes with that is a step change in revenue growth and free cash flow with a historically very long tail,” the market expert told CNBC in an interview today.
Note that the expected launch of GTA VI is already helping Take-Two shares buck the trend and remain significantly in the green at a time when the macro uncertainty has US stocks scrambling for gains.
Take-Two stock to remain resilient during a recession
According to Trivariate’s Parker, Take-Two shares will likely remain resilient even if the tariffs situation and the subsequently emerging trade war result in an economic slowdown in 2025.
Even in a slowing economy, the launch of GTA VI could help this video game publisher double its revenue by the end of the current decade.
This makes the “risk-reward skewed to the positive” in Take-Two Interactive Software, he added.
Despite tariff uncertainty, the Nasdaq-listed firm recently backed its guidance for up to $5.67 billion in revenue this year. Analysts, in comparison, were at a lower $5.61 billion.
How high could TTWO shares fly in 2025?
Parker isn’t alone in maintaining a bullish stance on Take-Two stock. The broader Wall Street consensus on the video game publisher remains firmly at “overweight,” reflecting sustained optimism about its growth prospects and upcoming releases.
In fact, Edward Woo of Ascendiant Capital currently sees an upside in TTWO shares of $270, which indicates the potential for a more than 25% gain from current levels.
In his recent note to clients, Woo also cited the expected release of GTA VI as the primary reason for his positive view on the company that owns Rockstar Games, Zynga, and 2K.
That said, shares of Take-Two Interactive Software remain unattractive for income investors given they do not currently pay a dividend.
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