Take-Two Interactive Software (TTWO, Financial) announced a delay in the release of the highly anticipated "Grand Theft Auto VI" game until next year. Despite this, investor confidence remains high, with the company's stock price maintaining levels above its previous peak earlier this month. This optimism is partly due to expectations for other upcoming games, such as "Borderlands 4," which are anticipated to be major hits.
Portfolio manager Alec Boccanfuso highlighted Take-Two's strong product lineup and growth potential, noting that the company is less affected by tariffs and economic uncertainties. The delay in "Grand Theft Auto VI" aims to ensure a quality release, which analysts believe will eventually lead to significant revenue, estimated at $2 billion in the first year post-launch.
Take-Two's recent financial results showed strong growth, with net bookings reaching $1.58 billion, surpassing expectations. However, analysts have adjusted their forecasts for fiscal 2026, reducing profit expectations by 32% and revenue by 5.4%, leading to a higher valuation of the stock.
Despite these adjustments, the company's revenue growth is expected to accelerate significantly in fiscal 2026. Analysts remain optimistic about Take-Two's trajectory, driven by a lineup of high-profile game releases.
