TTWO - 40 % Shorting Opportunity is Soon to Present Itself?Fundamental Indicators:
Sector – Communication Services
US Business Cycle Stage – late cycle, when this sector is neutral
Revenue- consistently growing since 2015, average 5-year rate at 16%
Profits – significantly dropped compared to 2021 by circa 60%
Net margin - significantly dropped compared to 2021 to 4.26%
P/E – extremely high at 131 compared to S&P500 with 21
Liabilities - debt ratio is at 0.46 which is within normal limits, Net Debt/ EBITDA is at 3.06 – no problems with debt
Conclusion – it is very likely to continue correcting deeper
Technical Analysis (Elliott Waves):
Main scenario of this idea suggests that we are still observing development of the global growth cycle which is currently in the corrective stage of wave 4 (see higher timeframe graph)
The bear move that has been developing since the historic high is likely to be just the first leg of this global wave 4 which can be counted as a complex WXY sequence. Where wave W is a double zig-zag, wave X is a Running Triangle, and wave Y has seen its W and X legs almost completed
The target for the final wave Y is around $86 which is at the 0.618x Fibonacci retracement level of global wave 3
This is a higher timeframe to reflect the full history of TTWO and to provide full wave count:
What do you think about TTWO and its short term prospects?
Also let me know if you would like to see other stocks, indices, Forex or Crypto analysed using Elliott Waves.
Thanks
