Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.

2021

Best News & Analysis Provider

FxDailyInfo

2022

Best Forex Educational Resources Global

International Business Magazine

Insights

News

Why Take-Two Interactive Stock Is Sinking Today

Source The Motley Fool

Take-Two Interactive (NASDAQ: TTWO) stock is falling in Thursday's trading. The video company's share price was down 2.7% as of 12:50 p.m. ET amid the backdrop of a 0.1% gain for the S&P 500 index and a decline of 0.4% for the Nasdaq Composite index.

Take-Two is losing ground today after fellow gaming-industry player Electronic Arts (NASDAQ: EA) published preliminary results for the third quarter of its current fiscal year, which ended Dec. 31. EA also issued revised guidance for its full fiscal year. Wall Street isn't happy with the update, and it's having a spillover effect for Take-Two stock.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

Take-Two stock falls on EA's disappointing update

EA stock is seeing big sell-offs on the heels of its preliminary Q3 report and guidance revisions. As of 12:50 p.m. ET, the company's share price was down 16.7% in the daily session.

EA said it now expects revenue for its third quarter to come in at roughly $1.883 billion. Earnings for the period are projected to come in at roughly $1.11 per share. Meanwhile, the company lowered its guidance for live services bookings for the fiscal year to a mid-single-digit decline -- down from its previous target for mid-single-digit growth.

The company primarily attributed the shift in guidance to softer-than-expected performance for its Global Football segment, although a substantial engagement drop-off for the company's Dragon Age: The Veilguard also caused the title to underperform and impact overall sales. With EA serving up results and guidance that came in well below expectations, investors are seeing warning signs for the gaming industry and selling out of Take-Two stock today.

What's next for Take-Two stock?

While EA's recent update could be a bearish indicator for the broader gaming industry, it could be a mistake to read too deeply into the report when it comes to Take-Two stock. For starters, EA's big underperformance really came down to just two titles. EA Sports FC 25 appears to be underperforming in part because the series no longer has the FIFA license. Meanwhile, Dragon Age: The Veilguard may have simply been out of touch with what gamers were looking for.

Take-Two is still seemingly on track to release Grand Theft Auto VI this year, and the title looks poised to be a massive success. Disappointing results for key releases from EA should not be taken as an indication of the kind of backdrop Grand Theft Auto VI will be launching into. If you were considering building or adding to a position in Take-Two stock, today's pullback could be a buying opportunity.

Should you invest $1,000 in Take-Two Interactive Software right now?

Before you buy stock in Take-Two Interactive Software, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Take-Two Interactive Software wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $901,323!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

Learn more »

*Stock Advisor returns as of January 21, 2025

Keith Noonan has positions in Take-Two Interactive Software. The Motley Fool has positions in and recommends Take-Two Interactive Software. The Motley Fool recommends Electronic Arts. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.

Recommended Articles

October hike odds climb toward 60% as Goldman and BofA both flip — what Warsh's "dose of accommodation" really changed Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.

Author Irene Q.

Sep 23, Wed

Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.

Four jobs reports in five days: what JOLTS, ADP, claims and the September payrolls mean for the October Fed decision The US labour market faces its densest data week of the month. JOLTS job openings land Tuesday (7.2 million expected), ADP on Wednesday (70,000 expected), initial claims on Thursday and the September non-farm payrolls on Friday (100,000 expected, down from 162,000). Markets price a 64%-70% chance of another quarter-point Fed hike on October 28. The dollar index sits at 100.77 and the S&P 500 at 7,729.8.

Author Mitrade

Sep 28, Mon

The US labour market faces its densest data week of the month. JOLTS job openings land Tuesday (7.2 million expected), ADP on Wednesday (70,000 expected), initial claims on Thursday and the September non-farm payrolls on Friday (100,000 expected, down from 162,000). Markets price a 64%-70% chance of another quarter-point Fed hike on October 28. The dollar index sits at 100.77 and the S&P 500 at 7,729.8.

【Daily Brief】30-year Treasury tops 5.59%, S&P 500 slips to 7,670 and gold holds $4,180 — PCE lands tonight The 30-year Treasury yield closed at 5.59%, its highest since June 2002, and the Dow fell 131.59 points to 51,349.92. US consumer confidence dropped to 81.9, a 12-year low, and JOLTS job openings fell to 7.1 million. August PCE and Q3 GDP both land at 8:30am ET tonight.

Author Suzie

Sep 30, Wed

The 30-year Treasury yield closed at 5.59%, its highest since June 2002, and the Dow fell 131.59 points to 51,349.92. US consumer confidence dropped to 81.9, a 12-year low, and JOLTS job openings fell to 7.1 million. August PCE and Q3 GDP both land at 8:30am ET tonight.

Gold falls to near $4,150 as higher Treasury yields, oil prices outweigh softer PCE inflation Gold price (XAU/USD) tumbles to near $4,150 during the early Asian session on Thursday, pressured by elevated US Treasury bond yields. Traders await the US September employment data for fresh impetus, which will be released later on Friday.

Author FXStreet

Yesterday 01: 26

Gold price (XAU/USD) tumbles to near $4,150 during the early Asian session on Thursday, pressured by elevated US Treasury bond yields. Traders await the US September employment data for fresh impetus, which will be released later on Friday.

United States Dollar Index sits near March 2025 highs, above 102.00 ahead of US NFP The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, attracts buyers for the fifth straight day and climbs back above the 102.00 mark during the Asian session on Friday.

Author FXStreet

9 hours ago

The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, attracts buyers for the fifth straight day and climbs back above the 102.00 mark during the Asian session on Friday.

Popular Symbols