Unwrapping Q4 Results

Analyzing Q4 Results: Take-Two and Its Competitors

As the fourth quarter earnings season for consumer internet companies wraps up, let's examine how Take-Two (NASDAQ:TTWO) performed compared to its industry peers.

Technology continues to reshape how people shop, travel, communicate, learn, and entertain themselves. Companies in the consumer internet sector are at the forefront of making daily life more convenient, accessible, and efficient.

Across the 46 consumer internet stocks monitored, Q4 results were mixed. Collectively, these companies exceeded revenue forecasts by 1.9%, while projections for the next quarter matched analyst expectations.

Despite some outperformers, the sector as a whole has seen a decline, with share prices dropping an average of 2.5% since the latest earnings announcements.

Take-Two Interactive (NASDAQ:TTWO)

Take-Two Interactive, renowned for blockbuster franchises like Grand Theft Auto and NBA 2K, stands among the largest video game publishers globally.

In Q4, Take-Two reported $1.76 billion in revenue, marking a 27.9% increase year-over-year and surpassing analyst estimates by 11.2%. The quarter was strong, with EBITDA results beating expectations, though the full-year EBITDA guidance fell notably short of analyst projections.

Strauss Zelnick, Chairman and CEO, commented: “Our exceptional third quarter performance reflects strong results across all our labels. We are raising our Net Bookings outlook for Fiscal 2026. With continued momentum and the highly anticipated launch of Grand Theft Auto VI on November 19th, we expect record Net Bookings in Fiscal 2027, setting a new financial foundation, improving profitability, and strengthening our balance sheet.”

Take-Two issued the weakest full-year guidance among its peer group. Following the report, shares have slipped 1.2% and are currently trading at $209.68.

Curious if Take-Two is a good investment right now?

Top Q4 Performer: LendingTree (NASDAQ:TREE)

LendingTree (NASDAQ:TREE) leverages a comparison model similar to those that revolutionized travel booking, offering an online platform that connects consumers with providers of mortgages, personal loans, credit cards, insurance, and other financial products.

For Q4, LendingTree posted $319.7 million in revenue, a 22.2% year-over-year increase and 11.5% above analyst forecasts. The company delivered an outstanding quarter, with next quarter’s EBITDA guidance exceeding expectations and a solid beat on EBITDA estimates.

LendingTree raised its full-year guidance more than any other peer. Investors responded positively, with shares rising 7.6% since the earnings release, currently priced at $40.60.

Interested in LendingTree’s prospects?

Lowest Q4 Performer: Shutterstock (NYSE:SSTK)

Shutterstock (NYSE:SSTK) began as a collection of founder Jon Oringer’s photographs and has grown into a digital marketplace offering hundreds of millions of licensable content pieces.

In Q4, Shutterstock reported $220.2 million in revenue, a 12% decline from the previous year and 12.7% below analyst expectations. The quarter was disappointing, with significant misses on both revenue and EBITDA estimates.

Shutterstock had the weakest performance relative to analyst forecasts among its peers. The stock has dropped 5.6% since the report and is currently trading at $16.30.

Electronic Arts (NASDAQ:EA)

Electronic Arts (NASDAQ:EA), famous for its Madden NFL and FIFA franchises, is a leading publisher in the video game industry.

EA reported $3.05 billion in revenue for Q4, up 37.5% year-over-year and 4% above analyst expectations. The quarter was particularly strong, with notable beats on both EBITDA and revenue estimates.

Following the earnings announcement, EA’s stock price has remained steady and is currently at $199.50.

Uber Technologies (NYSE:UBER)

Uber (NYSE:UBER), backed by $7.7 billion from the Softbank Vision Fund, operates a platform offering ride-hailing, food delivery, and freight services.

Uber’s Q4 revenue reached $14.37 billion, a 20.1% increase year-over-year, aligning with analyst expectations. The quarter was mixed, with some areas underperforming.

The company reported 202 million users, up 18.1% from last year. Since the earnings release, Uber’s shares have fallen 4.5% and are currently trading at $74.45.

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