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Take-Two (TTWO) Stock Trades Up, Here Is Why

TTWO Cover Image

What Happened?

Shares of video game publisher Take Two (NASDAQ: TTWO) jumped 4.3% in the afternoon session after the stock reached an all-time high, fueled by strong recent financial results and sustained investor optimism for its highly anticipated Grand Theft Auto VI title. 

The video game company's stock hit a record $245.6, capping a remarkable 55% increase over the past year. This momentum follows a strong first-quarter report for fiscal year 2026, where Take-Two surpassed expectations with adjusted earnings per share of $0.61, well above the projected $0.29. The company also beat its net bookings forecast and raised its full-year guidance. Adding to the positive sentiment, Take-Two's subsidiary Rockstar Games recently dismissed delay rumors and reaffirmed that Grand Theft Auto VI is on track for its May 26, 2026 release. In response to these developments, analysts have grown more bullish, with firms like Benchmark and Rothschild Redburn raising their price targets on the stock to $275 and $260, respectively.

After the initial pop the shares cooled down to $248.71, up 3.8% from previous close.

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What Is The Market Telling Us

Take-Two’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 7 months ago when the stock gained 15.3% on the news that the company reported strong fourth-quarter results and provided quarterly revenue guidance and full-year EPS outlook, which beat analysts' expectations. 

The company also confirmed its much-anticipated GTA VI title will come out in the fall of this year. The pipeline for the year is also stacked with popular titles, including Civilization VII, Mafia, and Borderlands 4. Management was upbeat about the outlook, with expectations for gradual improvements in net bookings in fiscal 2026 and 2027 as it rolls out its hit titles. Quarterly performance was mixed. Strength in NBA 2K helped counter softness in several mobile franchises, yet weak mobile sales weighed on overall bookings and revenue. The company is counting on Zynga to reverse these trends. Overall, this was a solid quarter.

Take-Two is up 35.9% since the beginning of the year, and at $248.71 per share, has set a new 52-week high. Investors who bought $1,000 worth of Take-Two’s shares 5 years ago would now be looking at an investment worth $1,592.

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