Take-Two falls 3.2% pre-market as Q1 earnings disappoint

Take-Two Interactive shares fell 3.2% pre-market Friday after the publisher's fiscal first-quarter report, as investors weighed GTA VI launch timing.

"The early Friday slot likely gives investors breathing room to digest major announcements before the financial discussion takes center stage," Alec Boccanfuso, portfolio manager at Gabelli Funds, said.

Consensus estimates had called for a loss of $0.21 per share on revenue between $1.36 billion and $1.40 billion for fiscal 2027. The report marks the first time Take-Two has delivered results before the US market open and on a Friday, breaking from its usual midweek schedule.

The decline comes as the company heads into the most consequential quarter in its history. Grand Theft Auto VI is scheduled for release November 19 on PlayStation 5 and Xbox Series X|S, with Wedbush analyst Alicia Reese projecting roughly 29 million units sold in the launch quarter and reaffirming a buy rating with a $300 price target.

Pre-orders for GTA VI opened June 25 and generated roughly $260 million in digital pre-order revenue in the first week, according to market research firm Newzoo — the strongest pre-order campaign the firm has ever measured. Rockstar reaffirmed in late July that the title remains on track for its November date.

BTIG confirmed its buy recommendation with a $293 target in late July, pointing to the secured release schedule as a stabilizing factor. Another research house has floated up to 30 million units sold within the first three months, citing higher demand potential than the 2013 predecessor.

Institutional investors had been expanding positions ahead of the quarter. Bank of America increased its stake by 3.2 percent to roughly 1.9 million shares, while Amundi boosted holdings by 38.1 percent to nearly 2.5 million shares, valued at approximately $492.56 million.

The stock had been drifting lower into the report, closing at €203.80 on Wednesday, down 2.21 percent on the day and 11.93 percent below its July high. The recent softness reflected growing nervousness about potential further delays to GTA VI's launch.

Beyond the GTA VI narrative, Take-Two's competitive position has strengthened. Electronic Arts was taken private Monday by a Saudi Arabia-led consortium for roughly $55 billion, leaving Take-Two as the largest remaining publicly traded pure-play video game publisher.

The pre-market decline suggests investors found something to dislike in the quarter or guidance. The next event to watch is the earnings call, where CEO Strauss Zelnick's comments on the November launch date and any fresh GTA VI marketing details will determine whether the stock can recover.

This article is for informational purposes only and does not constitute investment advice.