Take-Two Interactive Software (TTWO) – Preparing for a Potential Breakout Year
Take-Two (NASDAQ: TTWO) has had a solid run in 2025, with shares up meaningfully despite some shifts in its release calendar. The company was originally expected to launch Grand Theft Auto VI this year, but the release has been pushed back to May 2026. While that delay may have disappointed some short-term traders, it hasn’t changed our long-term view: GTA VI is still the biggest catalyst in the pipeline—and one of the most important upcoming releases in the entire gaming industry.
The next key event for the stock is its fiscal Q1 earnings report, scheduled for after the market closes on August 7. While the usual revenue and earnings numbers will get attention, the bigger focus will likely be on what management says about the development timeline for GTA VI and the broader release schedule. Any signs of further delays could hurt the stock in the short term, but clarity—or confirmation that the May 2026 target is holding—could reinforce investor confidence heading into 2026.
Despite growing just 5% last fiscal year and posting a net loss of $4.48 billion, Take-Two’s long-term prospects are still compelling. The valuation is admittedly rich at around 81x this year’s expected earnings and 6.7x expected sales, but the business is highly cyclical. Major releases can dramatically shift performance, and no title is more impactful than GTA VI.
It’s worth remembering that long-term investors who bought before past earnings reports—dating back to summer 2022—would have seen their positions gain in value. That track record doesn’t guarantee anything this quarter, but it speaks to a company with enduring brand power and loyal players.
With a $41 billion market cap and a 52-week range between $135 and $245, TTWO is trading at $226.39 as of August 4. It’s not cheap, but the stock is positioned for a potentially massive multi-year run if GTA VI delivers—and we think it will. For investors willing to be patient and ride out some near-term volatility, this could be a smart time to start building a position.
