The central theses
- Shares of Take-Two Interactive fell as Bank of America downgraded the stock due to concerns over the release of the new video game “Grand Theft Auto VI” (GTA 6).
- While the game was expected to release in March 2025, analysts now believe it won’t be available until fall of this year.
- Bank of America noted that Take-Two subsidiary and GTA 6 maker Rockstar Games has experienced delays in releasing games in the past.
Take-Two Interactive Software (TTWO) shares fell after Bank of America raised concerns about the release date of the highly anticipated video game “Grand Theft Auto VI” (GTA 6).
BofA downgraded the stock to “Neutral” from “Buy” as it doubted the game will be released in March 2025 as many expected. Research analysts Omar Dessouky and Arthur Chu explained that the Dec. 5 trailer for Take-Two subsidiary Rockstar Games’ GTA 6 said the game would “release in 2025.”
They argued that this left room for interpretation as to when the game would actually be available. For this reason – along with the fact that Rockstar has a “history of delaying release dates” – the analysts said they now “expect GTA 6 to release in the fall of 2025.”
The BofA team noted that Take-Two’s fiscal 2025 consensus estimates assume the March 2025 release date. They expect these estimates to fall by about 20% by August 2024.
Dessouky and Chu also said that based on the trailer and previous leaked footage, not enough is known about the quality of GTA 6 “to guarantee a billion-dollar run for GTA Online.”
Take-Two shares closed 2% lower at $154.21 on Thursday, but the stock is still up 50% for the year.