GTA, the game that keeps on selling

According to Steamspy, Rockstar was able to move about 300,000 copies of GTA V during the Steam autumn sale. To put that into perspective, Tyranny has sold a total of about 100,000 copies according to Steamspy estimates. 

Worth mentioning is also Civ VI at 1.3m sold copies and XCOM2 at 1m according to Steamspy. With consoles transition to digital distribution I don't really see why Take-Two should be trading at half the EV/Sales multiple of EA and ATVI.

I am inclined to buy some Take-Two stocks here.

THQ Nordic first day of trading

THQ Nordic started trading at SEK27 per share today, up SEK7 (35%) from the IPO subscription price. But it was not possible to get a big allocation as a retail investor as the IPO was 19x oversubscribed, I got 92 shares.

At SEK27/share the market-cap of the company is SEK1.94bn, which gives a P/S (based on the last 9 month annualized) of 8.4x. Given that they have 3 full-priced games in the pipeline continued YoY growth of 50% is possible which would motivate such a valuation, but from a risk-reward standpoint I'd rather own Frontier Developments at P/S 3x or even Take-Two Interactive also about 3x.

Take-Two Interactive results

Take-Two reported revenue growth of 21% to $420.2 million for the quarter. The company is doing well in expanding into new franchises outside GTA, both, NBA® 2K16,  and XCOM® 2 contributed significantly to growth.

Since the quarter ended Mafia III and Civilization VI has been released. 

The company has given guidance that the full year earnings (fiscal year ending i March 2017) will be in the range of $1.75 to $1.85 billion and net income in the range of $180 to $213 million. Using the lower end of those estimates the company is trading at P/S 2.2x and PE 21x. Compare that to EA which is trading at P/S 5x and PE 21x based on their full year 2017 guidance.

With Red Dead Redemption 2 from Take-Two coming 2017, Civilization VI being stuck at number 1 in Steam for several weeks since launch I am considering Take-Two as an attractive investment, but have not yet made up my mind to buy or not.