Some of the biggest gaming news of 2023 slipped out recently, as Take-Two Interactive (NASDAQ:TTWO) brought out its trailer for “Grand Theft Auto VI,” one of the biggest games of whichever year it’ll actually be released in. But with that trailer came an unexpected slide in Take-Two’s share price, as investors pulled back to the tune of over 2% in Tuesday morning’s trading.
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The trailer was an unquestioned hit; within two hours of it going live on YouTube, it garnered over four million views, which is staggering, to say the least. However, it’s clear that the trailer did not have the impact that Take-Two was hoping for, particularly given the decline in share prices.
Reports noted that the trailer release didn’t even go according to plan; Take-Two released the trailer to YouTube after it had leaked out. That turned up the timetable and brought the trailer to YouTube. The game itself is already described as the “…biggest, most immersive evolution of the Grand Theft Auto series yet” by developer Rockstar Games. Anticipation has been running hot for the title already, as “Grand Theft Auto V,” the previous game, took only three days to clear $1 billion in sales.
Not All Was Well in GTA Land
So, with all that in mind, why would the release of the trailer prompt such a slide in stock prices? Well, one point tracks back to that whole “leak” notion, where the trailer slipped out before Take-Two wanted it to. That’s a loss of control and can be a problem. But what might have been a bigger problem was one key point of the trailer – the 2025 release date.
Yes, you won’t see “GTA 6” on store shelves this year. Or next. Take-Two has been forced to concede an entire calendar year without new “Grand Theft Auto” updates. While certainly, “GTA 6” will be a winner, the idea that it won’t be a winner for another year had to hit shareholders hard.
What is the Target Price for Take-Two Interactive Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on TTWO stock based on 17 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 52.12% rally in its share price over the past year, the average TTWO price target of $166.16 per share implies 7.74% upside potential.
