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Take-Two Interactive’s ‘scarcity value’ could send it higher, Jim Cramer says
CNBC’s Jim Cramer on Monday explained why he’s bullish on Take-Two Interactive, saying it’s set to dominate the video game space now that its top competitor is going private.
“This was an industry with three major players, but now, with Activision gone and EA going private, Take-Two’s now the only major publicly-traded American video game company that’s a pure play,” Cramer said. “I think this is huge. Not only were some very sophisticated investors willing to pay a premium for EA, but Take-Two has real scarcity value now.”
Take-Two is known for a number of popular video game series, namely the Grand Theft Auto franchise. The company is gearing up for a May 2026 release of “Grand Theft Auto VI,” the latest iteration of the series, which gamers have been anticipating for more than a decade. Its predecessor, “Grand Theft Auto V,” is one of the best-selling video games ever, having sold more than 200 million copies since it came out in 2013.
Take-Two’s stock has climbed over the last few months, and shares are currently up 39.6% year-to-date.
Last week, the company’s peer Electronic Arts announced it would be acquired by the Public Investment Fund of Saudi Arabia, Silver Lake and Affinity Partners in a deal worth $55 billion. The take-private deal will be the largest leveraged buyout in Wall Street history. Cramer noted that Electronic Arts’ takeover comes two years after Microsoft acquired Activision Blizzard, another major American video game publisher.
According to Cramer, those who want to invest in a traditional video game company now need to enter the Japanese market or “bet on Take-Two.” He also said that while Microsoft and Sony have large gaming divisions, most of their sales come from other businesses.
Cramer also pointed to several aspects of Take-Two’s business he finds impressive, including results from its most recent quarter. The company beat Wall Street’s estimates and raised its full-year forecast for net bookings. Take-Two said new player accounts for GTA Online have grown more than 50% year-over-year, Cramer noted. He also said the company has other successful franchises beyond GTA, including sports game NBA 2K. The 2025 iteration of the game has already sold more than 11.5 million units, the company said, and daily active users climbed 30% year-over-year. While most of Take-Two’s games are played on Playstation, Xbox and PC, Cramer noted its mobile business is growing nicely.
“GTA VI” is likely to be a success, Cramer continued, even if the release date is delayed. If the game is delayed, and the stock takes a hit, he suggested investors use the decline as a buying opportunity.
“Just keep in mind, if you’re taking the plunge into Take-Two here, you have to be able to stomach any delays to ‘GTA VI,’” he said. “In fact, you should expect delays — video games aren’t like movies, which come out on a regular schedule.”
Take-Two did not immediately respond to request for comment.
