Take-Two Interactive Software (TTWO) shares closed Friday's session up 1.7% at $193.67, providing a modest rebound after a two-day decline. U.S. equity markets will be closed Monday for the Presidents Day holiday, with trading set to resume on Tuesday, February 17.
AI Volatility and Sector Pressure
The video game publisher's stock has been caught in the wider market's "AI scare," which has prompted investors to rapidly rotate in and out of technology and growth names. This trend reflects a broader market narrative focused on which industries can genuinely boost productivity through artificial intelligence investments.
Take-Two faced a significant sell-off earlier in the week, with shares falling 6.6% on Thursday to $190.36. Trading volume that day surged to approximately 5 million shares, more than double the stock's 50-day average. The company's shares currently trade about 28% below their 52-week high of $264.79, reached on October 15.
Company Fundamentals and Revised Outlook
Despite the macro concerns, Take-Two's business fundamentals showed strength recently. The company raised its fiscal 2026 net bookings forecast to a range of $6.65 billion to $6.7 billion following a third-quarter performance where net bookings hit $1.76 billion. CEO Strauss Zelnick highlighted "outperformance from all of our labels."
The Dual Challenge: AI and GTA VI Timing
Artificial intelligence presents a specific concern for the gaming sector. In late January, video game stocks, including Take-Two, sold off sharply after Google introduced "Project Genie," an AI model capable of generating interactive digital worlds from simple prompts. Take-Two fell 10% on the news.
However, the more immediate downside risk for Take-Two remains the calendar. The company recently delayed the launch of "Grand Theft Auto VI" from May 26, 2026, to November 19, 2026, triggering a more than 7% after-hours drop in its stock price. Management has downplayed the near-term threat from generative AI to core game development, calling current technology an early iteration that is "not even in the same ballpark" as professional game engines. For investors, the next major catalyst is firmly set for Rockstar's planned November launch.
