TTWO Should I Buy
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Buy now. TTWO just sold off hard (-7.93% regular session) into a deeply oversold reading (RSI-6 11.5) and is sitting close to near-term support (218.9). With hedge funds aggressively accumulating, Wall Street staying firmly bullish with rising $275–$300 targets, and near-term product/news flow (WWE 2K26 launch) plus an earnings catalyst on Feb 3, the current setup favors a rebound entry for an impatient buyer despite the still-bearish short-term trend momentum.
Price/Trend: The stock is in a sharp short-term downswing (large red day, MACD histogram -1.915 and expanding negatively), but conditions are stretched. Momentum: RSI_6 at 11.47 is extremely oversold, often associated with snapback potential even within a downtrend. Moving Averages: Converging MAs suggests compression/indecision after the drop; a bounce can be sharp if buyers step in. Key Levels: Pivot 233.22 (regaining this would improve near-term trend). Support S1 218.92 (price is hovering just above it post-market ~220.98); next support S2 210.09. Resistance R1 247.51. Intellectia Proprietary Trading Signals:
Earnings catalyst: QDEC 2025 earnings on 2026-02-03 after hours (EPS est. 0.
can reset narrative quickly if bookings/recurrent spend trends are strong.
Product/news flow: WWE 2K26 announced with March 6, 2026 launch; supportive for near-term engagement/revenues and sentiment.
Franchise cycle optimism: Analysts continue to frame GTA VI and evolution of GTA Online as a multi-year catalyst.
Positioning/flows: Hedge funds are reported as buying heavily (buying amount +976% QoQ), reinforcing institutional support on dips.
Near-term technical damage: MACD is bearish and still worsening, so the broader short-term tape remains risk-off until the stock reclaims the pivot (~233).
Profitability pressure: Latest quarter shows larger losses (negative net income and EPS), which can weigh on the stock if investors refocus on burn/expense trends.
Event risk timing: With earnings imminent, the stock may react strongly to any guide/bookings commentary (especially around major pipeline expectations).
Latest reported quarter: 2026/Q2. Growth: Revenue rose to $1.7738B (+31.09% YoY), indicating strong top-line momentum. Margins: Gross margin improved to 52.55% (+2.74% YoY), a constructive efficiency signal. Bottom line: Net income declined to -$133.9M (down 63.37% YoY) and EPS fell to -0.73 (down 64.90% YoY), showing profitability deterioration despite revenue growth (important to watch whether losses narrow in coming quarters).
Recent trend: Ratings remain strongly positive with multiple Buy/Outperform/Overweight stances and repeated price target raises. Notable changes: UBS raised PT to $300 (from $292) on 2026-01-28; Wells Fargo raised PT to $288 (from $277) on 2026-01-08; BMO raised PT to $275 (from $252) on 2025-11-07; Jefferies raised PT to $300 (from $270) on 2025-11-03; B. Riley initiated Buy with $300 PT (Dec 2025); Benchmark reiterates Buy and calls it a 2026 top idea. Wall Street pros: (1) Major pipeline/long-duration catalysts led by GTA VI and durable GTA Online economics, (2) improving engagement and recurrent consumer spending narrative, (3) mobile and core franchise data points cited as strong. Wall Street cons: (1) Timing/updates around the GTA VI catalyst can create air pockets if news is delayed, (2) near-term profitability/losses can dominate sentiment between major releases. Influential/political activity: No recent congress trading data available; insiders reported neutral with no significant recent trend.
