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.
placeholder
Bitcoin CME gaps at $35,000, $27,000 and $21,000, which one gets filled first?Prioritize filling the $27,000 gap and even try higher.
Author  FXStreet
Aug 22, 2023
Prioritize filling the $27,000 gap and even try higher.
placeholder
Elon Musk’s xAI and Neuralink Launch New Funding Rounds​Billionaire Elon Musk recently raised funds for his two high-profile tech companies, xAI and Neuralink.
Author  Insights
Jun 03, 2025
​Billionaire Elon Musk recently raised funds for his two high-profile tech companies, xAI and Neuralink.
placeholder
The dollar weakened, equities dipped, and gold hit record highsThe dollar weakened, equities fell, and gold set new records on Wednesday as investors waited for a Fed rate cut later in the day.
Author  Cryptopolitan
Sep 17, 2025
The dollar weakened, equities fell, and gold set new records on Wednesday as investors waited for a Fed rate cut later in the day.
placeholder
Bitcoin briefly loses 2025 gains as crypto plunges over the weekend.Bitcoin experienced a sharp decline this weekend, briefly erasing its 2025 gains and dipping below its year-opening value of $93,507. The cryptocurrency fell to a low of $93,029 on Sunday, representing a 25% drop from its all-time high in October. Although it has rebounded slightly to around $94,209, the pressures on the market remain significant. The downturn occurred despite the reopening of the U.S. government on Thursday, which many had hoped would provide essential support for crypto markets. This year initially appeared promising for cryptocurrencies, particularly after the inauguration of President Donald Trump, who has established the most pro-crypto administration thus far. However, ongoing political tensions—including Trump's tariff strategies and the recent government shutdown, lasting a historic 43 days—have contributed to several rapid price pullbacks for Bitcoin throughout the year. Market dynamics are also being influenced by Bitcoin whales—investors holding large amounts of Bitcoin—who have been offloading portions of their assets, consequently stalling price rallies even as positive regulatory developments emerge. Despite these sell-offs, analysts from Glassnode argue that this behavior aligns with typical patterns seen among long-term investors during the concluding stages of bull markets, suggesting it is not indicative of a mass exodus. Notably, Bitcoin is not alone in its struggles, as Ethereum and Solana have also recorded declines of 7.95% and 28.3%, respectively, since the start of the year, while numerous altcoins have faced even steeper losses. Looking ahead, questions linger regarding the viability of the four-year cycle thesis, particularly given the increasing institutional support and regulatory frameworks now in place in the crypto landscape. Matt Hougan, chief investment officer at Bitwise, remains optimistic, suggesting a potential Bitcoin resurgence in 2026 driven by the “debasement trade” thesis and a broader trend toward increased adoption of stablecoins, tokenization, and decentralized finance. Hougan emphasized the soundness of the underlying fundamentals, pointing to a positive outlook for the sector in the longer term.
Author  Mitrade
Nov 17, 2025
Bitcoin experienced a sharp decline this weekend, briefly erasing its 2025 gains and dipping below its year-opening value of $93,507. The cryptocurrency fell to a low of $93,029 on Sunday, representing a 25% drop from its all-time high in October. Although it has rebounded slightly to around $94,209, the pressures on the market remain significant. The downturn occurred despite the reopening of the U.S. government on Thursday, which many had hoped would provide essential support for crypto markets. This year initially appeared promising for cryptocurrencies, particularly after the inauguration of President Donald Trump, who has established the most pro-crypto administration thus far. However, ongoing political tensions—including Trump's tariff strategies and the recent government shutdown, lasting a historic 43 days—have contributed to several rapid price pullbacks for Bitcoin throughout the year. Market dynamics are also being influenced by Bitcoin whales—investors holding large amounts of Bitcoin—who have been offloading portions of their assets, consequently stalling price rallies even as positive regulatory developments emerge. Despite these sell-offs, analysts from Glassnode argue that this behavior aligns with typical patterns seen among long-term investors during the concluding stages of bull markets, suggesting it is not indicative of a mass exodus. Notably, Bitcoin is not alone in its struggles, as Ethereum and Solana have also recorded declines of 7.95% and 28.3%, respectively, since the start of the year, while numerous altcoins have faced even steeper losses. Looking ahead, questions linger regarding the viability of the four-year cycle thesis, particularly given the increasing institutional support and regulatory frameworks now in place in the crypto landscape. Matt Hougan, chief investment officer at Bitwise, remains optimistic, suggesting a potential Bitcoin resurgence in 2026 driven by the “debasement trade” thesis and a broader trend toward increased adoption of stablecoins, tokenization, and decentralized finance. Hougan emphasized the soundness of the underlying fundamentals, pointing to a positive outlook for the sector in the longer term.
placeholder
Silver Price Forecast: XAG/USD falls to near $72.00 amid fading safe-haven demandSilver price (XAG/USD) continues to lose ground after registering tiny losses in the previous day, trading around $72.90 during the Asian hours on Thursday. The safe-haven demand for the precious metal fades amid rising optimism over Middle East peace.
Author  FXStreet
Apr 02, Thu
Silver price (XAG/USD) continues to lose ground after registering tiny losses in the previous day, trading around $72.90 during the Asian hours on Thursday. The safe-haven demand for the precious metal fades amid rising optimism over Middle East peace.
goTop
quote