Grand Theft Auto VI Rumors Ignite Take-Two Interactive Stock to New Heights

The stock of a videogame publisher leads S&P 500 gainers and reaches $140 for the first time in more than a year after ‘groundbreaking’ guidance that hinted at blockbuster game release dates in 2024.

After the publisher of videogames implied that new blockbuster releases like “Grand Theft Auto VI” will appear in 2024 or early 2025, Take-Two Interactive Software Inc. jumped Thursday.

After rising as much as 13% to an intraday high of $141.47, a price not seen in more than a year, Take-Two (TTWO) shares closed 11.7% at $139.63. By the conclusion of the day, the stock had delivered its best performance since May 17, 2022, when the price increased by 11.8%.

Shares had been on course for their highest one-day percentage rise since May 19, 2015, when shares gained 18.3%. In addition to leading gainers on the S&P 500 index, which finished up 0.9% on Thursday, were Take-Two’s shares.

Take-Two shares have increased 34.1% year to date, outpacing gains of 9.3% and 21.2% for the S&P 500 and Nasdaq Composite Index, respectively.

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Take-Two, which publishes popular videogame franchises like “Grand Theft Auto” and “Red Dead Redemption” under its Rockstar Games label and “Borderlands” and “NBA 2K” under its 2K label, provided a disappointing forecast for the recently ended fiscal year on Wednesday but highlighted the beginning of “several groundbreaking titles” in the following fiscal year.

It is anticipated that this will also feature “Grand Theft Auto VI,” the much-anticipated sequel to the all-time best-selling videogame. Earlier this week, Wedbush analyst Nick McKay essentially predicted it, stating that shares would be under pressure if Take-Two lowballed the projection for the year, as he thought, without citing any notable titles coming out.

The sixth “Grand Theft Auto” game and this year’s poor guidance were all but confirmed by Take-Two late on Wednesday, giving “bulls to dream,” as McKay stated. The outlook was hailed as “groundbreaking” on Thursday by Jefferies analyst Andrew Uerkwitz, who rates Take-Two with a buy recommendation and a $165 price target.

“This is it,” Uerkwitz said. “In a rare move, Take-Two gave 2-year forward guidance with year-3 color. The large immersive core titles we’ve been waiting on since the company started its investment cycle in 2018 are finally expected to be released in [calendar 2024 and 2025],” Uerkwitz said.

Additionally, the $8 billion in net bookings management has said for the fiscal 2026 period indicate that “this growth is more than one specific title,” according to the Jefferies analyst.

According to the projection, “Grand Theft Auto VI” is expected to release a little more than a year away, sending Take-Two shares soaring. Last year, Rockstar Games said, “Active development for the following installment in the ‘Grand Theft Auto’ series is well under way.”

Strauss Zelnick, the chairman and CEO of Take-Two, said that the projection included “several high-profile, long-awaited titles in our pipeline,” and TD Cowen analyst Doug Creutz underlined the “several” aspect of that remark, calling the expectation “tremendous.”

“The mention of ‘groundbreaking titles’ to us pretty clearly includes GTA6, as we feel confident in saying no other combination of title releases would allow management to confidently project a [year-over-year $2.5 billion plus] increase in bookings,” Creutz said.

“We think it almost certainly also includes ‘Borderlands 4,’ as we know that title is in development, and marketing commitment levels disclosed in the last two 10-Ks have suggested a [fiscal 2024 or 2025] release.”

Creutz has a price objective of $147 and an outperform rating. Take-Two is followed by 29 analysts, 22 have buy recommendations, and seven have hold ratings, with a price target of $144.88, up from $134.14.

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The purchase of “Call of Duty” publisher Activision Blizzard Inc. (ATVI) by Microsoft Corp. (MSFT) for $69 billion is still being resisted by U.K. authorities. Still, Microsoft has vowed to fight the decision.

Activision Blizzard’s shares have lately been under pressure from the U.K. block despite positive results. Additionally, Electronic Arts Inc. (EA), whose shares have been up 3.3% year to date, announced record bookings last week and provided a positive outlook.