Take-Two Interactive Software Shares Down 3% on Q1 EPS Miss

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is a leading figure in the video game sector, boasting renowned titles such as Grand Theft Auto and NBA 2K. The company, operating through its labels Rockstar Games and 2K, is a key competitor against other industry giants like Electronic Arts and Activision Blizzard. However, recent events have placed Take-Two in the spotlight for less favorable reasons, as it faces an investigation by Pomerantz LLP concerning potential securities fraud or unlawful business practices.

The probe by Pomerantz LLP is centered around allegations of securities fraud or illicit business operations within Take-Two and its executive team. This investigation was set off by an announcement from Rockstar Games, a Take-Two subsidiary, regarding the postponement of Grand Theft Auto VI to May 26, 2026. This delay significantly impacted Take-Two's stock, which experienced a drop of $15.67 per share, or 6.66%, closing at $219.50 on May 2, 2025. Amidst this scrutiny, Ellen F. Siminoff, a director at Take-Two, proceeded with the sale of 268 shares of the company's common stock at $230.95 each on June 16, 2025.

Post-transaction, Siminoff's holdings in the company stood at 4,696 shares. This sale was executed following a recovery in the stock price to $239, marking a 0.62% increase. The stock has demonstrated volatility, with a trading range between $235.67 and $241.82 on the day of the sale. Over the past year, Take-Two's stock performance has witnessed fluctuations, reaching a high of $241.98 and a low of $135.24. The company's market capitalization stands at approximately $42.4 billion, underscoring its significant role in the gaming industry. Despite the challenges faced, trading volume on the NASDAQ remains strong, with 1,377,729 shares traded, indicating sustained investor interest in Take-Two.

Take-Two Interactive (NASDAQ:TTWO) delivered mixed fiscal fourth-quarter results, falling short on earnings and issuing cautious guidance that disappointed investors following the delay of the next Grand Theft Auto installment.

The company posted earnings per share of $1.08 on revenue of $1.58 billion, missing the $1.12 EPS consensus but edging past revenue expectations of $1.55 billion. Net bookings rose 17% year-over-year to $1.58 billion, reflecting strong underlying demand across its game portfolio.

Looking ahead, Take-Two guided for a fiscal Q1 net loss between $0.78 and $0.65 per share on revenue of $1.35 billion to $1.4 billion, in line with revenue expectations but reflecting ongoing cost pressures. Bookings are forecast between $1.25 billion and $1.3 billion.

For the full fiscal year, the company expects a net loss of $2.79 to $2.45 per share and revenue of $5.95 billion to $6.05 billion. Bookings are projected at $5.9 billion to $6 billion.

• Ascendiant maintains its "Buy" rating for NASDAQ:TTWO, priced at $208.06.
• TTWO's stock price has experienced a slight decrease to $208.05, indicating some volatility.
• An ongoing investigation into potential data breaches on the Borderlands website could impact Take-Two Interactive's reputation and financial standing.

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is a prominent player in the video game industry, known for its popular franchises like Grand Theft Auto and Borderlands. The company develops and publishes interactive entertainment for consumers worldwide. It competes with other major gaming companies such as Electronic Arts and Activision Blizzard. On March 3, 2025, Ascendiant maintained its "Buy" rating for TTWO stock, which was priced at $208.06 at the time.

Despite the positive rating from Ascendiant, TTWO's stock price has seen a slight decrease. Currently, the stock is priced at $208.05, reflecting a decrease of approximately 1.85% or $3.93. The stock has traded between $207.79 and $214.50 today, indicating some volatility in its price. Over the past year, TTWO has experienced a high of $218.75 and a low of $135.24, showcasing its fluctuating performance.

The company's market capitalization is approximately $36.72 billion, highlighting its significant presence in the gaming industry. With a trading volume of 1,736,454 shares on the NASDAQ exchange, TTWO remains an actively traded stock. However, the ongoing investigation by Levi & Korsinsky, LLP into potential data breaches on the Borderlands website could impact the company's reputation and financial standing.

The investigation suggests that legally protected data may have been unlawfully intercepted during transactions on the Borderlands platform. If Take-Two Interactive is found responsible for failing to secure this data, it could face legal and financial consequences. This situation could affect customer trust and potentially influence the company's stock performance in the future.

• Ascendiant maintains its "Buy" rating for NASDAQ:TTWO, priced at $208.06.
• TTWO's stock price has experienced a slight decrease to $208.05, indicating some volatility.
• An ongoing investigation into potential data breaches on the Borderlands website could impact Take-Two Interactive's reputation and financial standing.

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is a prominent player in the video game industry, known for its popular franchises like Grand Theft Auto and Borderlands. The company develops and publishes interactive entertainment for consumers worldwide. It competes with other major gaming companies such as Electronic Arts and Activision Blizzard. On March 3, 2025, Ascendiant maintained its "Buy" rating for TTWO stock, which was priced at $208.06 at the time.

Despite the positive rating from Ascendiant, TTWO's stock price has seen a slight decrease. Currently, the stock is priced at $208.05, reflecting a decrease of approximately 1.85% or $3.93. The stock has traded between $207.79 and $214.50 today, indicating some volatility in its price. Over the past year, TTWO has experienced a high of $218.75 and a low of $135.24, showcasing its fluctuating performance.

The company's market capitalization is approximately $36.72 billion, highlighting its significant presence in the gaming industry. With a trading volume of 1,736,454 shares on the NASDAQ exchange, TTWO remains an actively traded stock. However, the ongoing investigation by Levi & Korsinsky, LLP into potential data breaches on the Borderlands website could impact the company's reputation and financial standing.

The investigation suggests that legally protected data may have been unlawfully intercepted during transactions on the Borderlands platform. If Take-Two Interactive is found responsible for failing to secure this data, it could face legal and financial consequences. This situation could affect customer trust and potentially influence the company's stock performance in the future.

Take-Two Interactive Software (NASDAQ:TTWO) reaffirmed its annual bookings guidance and projected future growth, even as it forecasted a deeper annual loss and delivered mixed fiscal first-quarter results. The video game maker reported a Q1 loss of $1.52 per share on revenue of $1.34 billion, missing analyst expectations of a $1.37 per share loss on $1.26 billion in revenue.

Net bookings, which represent the net amount of products and services sold digitally or physically, rose 1% to $1.22 billion. For fiscal Q2, Take-Two anticipates a net loss ranging from $2.15 to $2.30 per share and net bookings between $1.42 billion and $1.47 billion. The company also revised its fiscal 2025 loss forecast to a range of $3.95 to $4.33 per share, compared to its previous estimate of $3.50 to $3.90.

Despite the wider loss forecast, Take-Two maintained its bookings guidance for the year at $5.55 billion to $5.65 billion and highlighted expected growth in the coming years. The company anticipates sequential increases in net bookings in fiscal 2026 and 2027, which it believes will drive long-term shareholder value.

Following the results, Take-Two's shares rose more than 4% on Friday.

Take-Two Interactive Software (NASDAQ:TTWO) reaffirmed its annual bookings guidance and projected future growth, even as it forecasted a deeper annual loss and delivered mixed fiscal first-quarter results. The video game maker reported a Q1 loss of $1.52 per share on revenue of $1.34 billion, missing analyst expectations of a $1.37 per share loss on $1.26 billion in revenue.

Net bookings, which represent the net amount of products and services sold digitally or physically, rose 1% to $1.22 billion. For fiscal Q2, Take-Two anticipates a net loss ranging from $2.15 to $2.30 per share and net bookings between $1.42 billion and $1.47 billion. The company also revised its fiscal 2025 loss forecast to a range of $3.95 to $4.33 per share, compared to its previous estimate of $3.50 to $3.90.

Despite the wider loss forecast, Take-Two maintained its bookings guidance for the year at $5.55 billion to $5.65 billion and highlighted expected growth in the coming years. The company anticipates sequential increases in net bookings in fiscal 2026 and 2027, which it believes will drive long-term shareholder value.

Following the results, Take-Two's shares rose more than 4% on Friday.

• Take-Two Interactive Software, Inc. (NASDAQ:TTWO) projects second-quarter bookings to fall short of expectations due to a slowdown in consumer spending.
• The company remains optimistic about future growth, particularly with the upcoming launch of "Grand Theft Auto VI."
• Despite near-term challenges, Take-Two's diverse development pipeline and strategic focus on long-term growth highlight its resilience and potential for future success.

NASDAQ:TTWO, Take-Two Interactive Software, is a major player in the video game industry, known for its blockbuster titles like "Grand Theft Auto" (GTA) and "NBA 2K." Recently, the company projected its second-quarter bookings to fall short of Wall Street expectations, a development attributed to a slowdown in consumer spending on its flagship games amid an uncertain economic climate. Despite this immediate challenge, Take-Two remains optimistic about its future, particularly with the highly anticipated launch of "Grand Theft Auto VI" next year. This optimism is rooted in the franchise's proven track record of success, with its predecessor, "GTA V," achieving over 200 million units sold worldwide.

The company's stock responded positively to this long-term outlook, with shares rising more than 5% in extended trading. This investor confidence is bolstered by the insights of analysts like Michael Pachter from Wedbush Securities, who points to the upcoming release of "GTA VI" as a key driver for growth in bookings over the next two fiscal years. Furthermore, Take-Two's announcement of a robust development pipeline, planning around 40 titles through fiscal 2027, underscores its commitment to sustaining growth and innovation in the gaming sector.

However, the near-term forecasts present a more challenging picture. Take-Two expects second-quarter bookings to range between $1.42 billion and $1.47 billion, slightly below the consensus analyst estimate of $1.47 billion as per LSEG data. This projection reflects the impact of declining recurrent consumer spending on "GTA Online" during the first quarter, hinting at a potential dip in player engagement for this live-service game. The company's first-quarter bookings, totaling $1.22 billion, also fell short of the expected $1.25 billion, further illustrating the immediate hurdles faced by the company.

Despite these challenges, Take-Two has reassured stakeholders that the ongoing video game performers strike has not affected its title development, a sentiment shared by its industry peer, Electronic Arts. This resilience is further demonstrated by the company's surprising first-quarter profit of 5 cents per share on an adjusted basis, defying expectations of a 2-cent loss. This financial performance, coupled with the strategic focus on long-term growth through high-profile releases and a diverse development pipeline, positions Take-Two Interactive Software as a company with promising prospects, navigating through short-term uncertainties with a clear vision for future success.