I Was Right! GTA VI Stock Reaches $200 Mark Again Since 2020
Take-Two Interactive Software (NASDAQ: TTWO) saw its shares soar over 9% following the reaffirmation of its full-year guidance and the announcement of major game releases. This rise in stock price comes despite the company's third-quarter results falling short of analyst expectations.
In its Q3 report, Take-Two revealed net bookings of $1.37 billion, aligning with its guidance range but missing the consensus estimate of $1.39 billion. Adjusted earnings per share (EPS) were reported at -$0.71, significantly below the anticipated $0.59.
However, the video game publisher upheld its fiscal year 2025 net bookings forecast, projected to be between $5.55 billion and $5.65 billion. This positive outlook is supported by the strong performance of NBA 2K25 and upcoming high-profile game releases.
Take-Two plans to launch several major titles in the coming year, including Sid Meier's Civilization VII, Mafia: The Old Country, Grand Theft Auto VI, and Borderlands 4. The highly anticipated release of Grand Theft Auto VI is scheduled for the fall of 2025.
CEO Strauss Zelnick expressed confidence in the company's prospects, stating, "This calendar year is shaping up to be one of the strongest ever for Take-Two." He anticipates record net bookings levels in fiscal years 2026 and 2027.
BMO Capital Markets analyst Brian J. Pitz reiterated his Outperform and Top Pick ratings on TTWO shares, citing the confirmed plans for the GTA VI release as a key factor. He noted that many investors had been cautious, awaiting a potential delay for GTA VI, but the confirmation of its launch date has driven positive after-hours movement in TTWO shares. For Q3, net bookings from recurrent consumer spending grew 9% year-over-year, accounting for 79% of total net bookings. The biggest contributors included NBA 2K25, Grand Theft Auto Online, and mobile titles like Toon Blast and Match Factory.
Looking ahead, Take-Two expects Q4 revenue between $1.519 billion and $1.619 billion, with EPS ranging from -$0.20 to $0.13. The full-year EPS guidance is set between -$4.50 and -$4.17, below the analyst expectations of $2.47.
