Take-Two Interactive stock fell more than 5% despite crushing third-quarter expectations. The video game publisher reported net bookings of $1.76 billion, easily topping consensus estimates of $1.58 billion.
Take-Two Interactive Software, Inc., TTWO
The selloff came as investors worried about Google’s Project Genie. The new AI platform appears capable of creating video games from scratch. This sparked concerns about potential disruption to traditional game publishers.
Jim Cramer called the decline a buying opportunity. He pointed to the company’s solid quarter and terrific full-year forecast. “I do think that you’re getting a chance to buy it,” Cramer said on his show.
Recurrent consumer spending grew 23% year-over-year. That’s an acceleration from the 20% growth seen in the second quarter. This metric tracks ongoing player spending on virtual items and game content.
Grand Theft Auto Online delivered 27% revenue growth. Management had previously guided for a moderate decline. NBA 2K’s recurrent spending jumped 30% year-over-year.
The mobile segment posted its third straight quarter of double-digit growth. Revenue climbed 19% year-over-year since the Zynga acquisition. All major franchises showed strength across the portfolio.
Oppenheimer maintained its Outperform rating with a $265 price target. The stock closed at $212.17. BofA Securities kept its Buy rating at $295, calling the weakness an attractive entry point.
Take-Two raised full-year 2026 bookings guidance by $225 million. The new target of $6.68 billion implies 17% recurrent consumer spending growth. The previous guidance called for just 11% growth.
Earnings per share hit $1.23, crushing the $0.83 estimate. Revenue of $1.76 billion beat expectations of $1.59 billion. The company posted 20.34% revenue growth over the last twelve months, reaching $6.56 billion total.
Goldman Sachs adjusted its price target to $270 from $280. The firm maintained its Buy rating on the stock. Analysts expect Take-Two to return to profitability this fiscal year with projected EPS of $3.30.
The stock has fallen 12.75% over the past week. Technical indicators show TTWO trading in oversold territory. InvestingPro data suggests the shares are trading above fair value despite the recent decline.
Management reaffirmed Grand Theft Auto VI’s November 19 release date. Launch marketing will begin this summer. After EA’s announced takeover, Take-Two will be the only independent publicly traded major game publisher.
Cramer highlighted the scarcity value in his January 8 episode. “Take-Two is up 39%, great scarcity value there, and a hope for the launch of the new edition of Grand Theft Auto in the works,” he said. He called Grand Theft Auto “the greatest performing entertainment property in history.”
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